Pound-euro parity promotes creativity in Spanish real estate

Seven years ago back in January 2002 the pound bought a mighty 1.61 euros. Now it’ll buy a smidgen more than one, its weakest point since the euro’s inception exactly a decade ago. This is a massive blow to an already faltering Spanish property market. But as the phrase goes ‘there are many ways to skin a cat’ and at Costa Calida-based Mercers they’ve proved that a little creativity can go a long way to beat the currency crisis.

Chris Mercer, Director of Mercers, comments, “The good news is that prices are already falling, either naturally or due to us putting pressure on our vendors to be realistic if they want a prompt sale, and this has taken much of the sting out of the weak pound. Even better news is that in the Costa Calida many of our vendors are Brits who stand to make sizeable profits from the situation as they convert their euros back to pounds. In some cases this exchange rate profit can see them making as much as 30% - 60%, so they can afford to reduce their selling price accordingly.”

The Spanish property market has also rejuvenated the ancient art of bargaining with the bold and the brave securing some sizeable discounts. You’ll never know unless you try.

Chris continues, “Six months ago we had a buyer keen to secure a two bedroom two bathroom ‘Rosa’ style detached villa on the ever-popular Camposol golf development in Mazarron. He viewed a total of six similar properties priced between 235,000 and 255,000 euros. Not overly picky between the six, he made a flat offer of 150,000 euros for any of them. As an agent we had a duty to inform each vendor of his offer, however low it seemed, and whilst five vendors said an outright ‘no’, the sixth agreed as was keen on a quick sale. A saving of 100,000 euros more than outweighed any embarrassment on the purchaser’s part for going in with what appeared to be a crazy offer. Six months later any of those five vendors yet to achieve a sale are possibly kicking themselves having seen both prices and the pound fall further.”

Mercers has a wide selection of Camposol properties on offer ranging from the smaller two bedroom one bathroom fully furnished terraced ‘Clasico’ villa with sunny roof terrace from as little as 58,000 euros right up to a three bedroom three bathroom detached furnished ‘Neptuno’ with private swimming pool from 150,000 euros. Before bargaining of course…

For more information, visit spanishproperty.co.uk