Report confirms the slowdown in the property market on the Costa del Sol

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Report confirms the slowdown in the property market on the Costa del Sol
By h.b. - Mar 26, 2008 - 8:20 AM
ALSO SEE : • Alicante leads Spain in construction job losses - Jul 3, 2008 - 8:23 AM
• Junta de Andalucía suspends Almuñecar urbanisation licence - Jun 20, 2008 - 8:32 AM

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The report was published yesterday by the Aguirre Newman consultants and shows property is taking as long as 56 months to sell
A new report from the consultancy firm Aguirre Newman, on the residential tourism market on the Costa del Sol, has shown that the current slow down in the sector and uncertainty in the financial sector is leaving 45% of newly constructed homes on the coast without a buyer, some 20% more than a year ago.

The report says the area is now suffering from an excess offer with a shortage of both national and foreign buyers, and that resale flats along the coast are now taking nearly 52 months to sell, while villas are taking nearly 56 months.

What is described as a timid adjustment in price, around 5% has been seen, although it notes larger falls in some areas; 12% in Mijas Costa and 15% in Sotogrande. Aguirre Newman has also noted that the number of homes offered for sale ‘off-plan’ has fallen by 9.5%.

There is some positive news in the report, with a prediction of an increase in foreign demand for housing forecast for the last quarter of the year.

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ALSO SEE :
• Alicante leads Spain in construction job losses - Jul 3, 2008 - 8:23 AM
• Junta de Andalucía suspends Almuñecar urbanisation licence - Jun 20, 2008 - 8:32 AM
• Málaga land price resists national falls - Jun 20, 2008 - 8:00 AM
• Elche Town Hall releases land for 6,000 new homes - Jun 17, 2008 - 8:09 AM
• Construcion of only 489 flats started across Alicante province in four months - Jun 5, 2008 - 8:35 AM
• Local councils lose income in real estate slowdown - Jun 3, 2008 - 7:02 AM
• Manilva beach development halted - May 24, 2008 - 5:04 PM
• Construction slowdown hits immigrants in Alicante province - May 20, 2008 - 7:48 AM
• Construction slowdown clear in Alicante - May 2, 2008 - 8:16 AM
• Plan for new 50 floor hotel in La Vila Joiosa - Apr 16, 2008 - 8:28 AM
• Nine charged in new real estate scam in Chiclana - Apr 11, 2008 - 6:37 PM

Comments

Pops
26 Mar 2008, 10:24

"...an increase in foreign demand for housing forecast for the last quarter of the year." Really? Expecting a few boat-loads of blind, dumb, and deaf folk to hit the beach, are they? I think the good people at Aguirre Newman are a little bit too blinkered; a little bit in need too of a reality check.

Bernard Hornung
26 Mar 2008, 20:19

All markets thrive on scarcity and momentum. An oversupplied market remains vulnerable to falls, and evidence suggests that this market is oversupplied. It is difficult to share any form of optimism, or even to consider a possible upturn at year end. From previous experience in the Sotogrande market it takes several years for any recovery to be achieved and although history seldom repeats itself precisely it does have a certain rythym.

Pops
26 Mar 2008, 20:50

Careful, Bernard, they'll be blaming the likes of us for the downturn next.

Bernard Hornung
27 Mar 2008, 10:49

One of the most perilous activities is to forecast anything. However last time the recession started in 1987 when mortgage interest rate relief on second homes for Spanish tax residents was abolished and IVA introduced. The recession was not evident or reported until 1990.

The recovery was defined by the Ryder Cup in September 1997, and lasted until November 2003.

Those who ignore history are bound to make the same mistakes as previous generations have.

The problem this time is the scale of the oversupply, particularly in Sotogrande.

Please keep to the subject. Opinions published here are of our visitors, not the Typically Spanish team. Comments which go against Spanish laws or which are libellous are not allowed. We reserve the right to delete any comment we wish.

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