When you are looking to buy a property in Spain, you will realise that there is an excellent chance of you finding your ideal property as there are so many for sale. Equally, this may lead you to believe that you will get your ideal property for a song. This, however, may not be the case. Read on…
Some estimate that there are currently over 1.5 million properties for sale in Spain. We believe this is an overestimate. Bankinter believes the numbers are around 740,000 properties which we find much more believable, although maybe on the low side. However, they consider that around 150,000 of those are unsellable as they are in undesirable locations, ie. some areas of the coast or in ghost towns around major conurbations especially built for commuting into the city (eg. Sesena in Madrid).
We prefer to look at it this way. You come over to Spain to look for a property either to live in, to rent out or as an investment. What you think is a good deal there will be others who believe it to be a good deal too. What you think is rubbish… well you are probably right. However everyone else thinks that too. So, in effect, the unsellable, uninteresting, uninspiring is actually closer to 650,000 properties leaving probably 100,000 possibilities around Spain at current prices.
And what happens to those 100,000?
Well, this year they will probably be sold at the asking price or very close because there is demand, especially in the cities and the best coastal locations.
What will happen to half of the remaining 640,000 properties?
They will drop in price and eventually find a buyer over the next five years or so, once they reach a price that attracts buyers who are not location, location, location dependent.
No chance. They would be better pulled down, relandscaping and thus getting rid of things that are unsellable at any price.
What does that mean to you as a buyer?
Well, you have about a year before the best bargains in the best locations are gone. Some more will appear, without doubt, especially if the World financial markets ever collapse again, however there will never be the same opportunity to find locational bargains as there is at the moment and for the next few months.