Spain’s real estate sector is optimistic that it will turn for the better in the next 18 months, according to a recent survey by international consultants CB Richard Ellis (CBRE).
Spanishpropertyinsight.com says quoting a report by CBRE that 7% of surveyed investors planned to invest in residential property early next year. While investors opt to commit some 40% and 50% on prime shopping centres and offices, respectively.
This would be a reversal from the previous semester’s drop in investment intentions prompting prices of residential property to decline by 5.2% in large cities (y-o-y); by 6.7% on the Mediterranean coast; and by just 0.8% in the Balearics and Canaries, according to statistics compiled by globalpropertyguide.com (GPG).
Spain remains as a property investment choice because of the no restrictions policy on foreigners buying property in Spain.
During the first quarter of 2011, completed residential homes in holiday destination areas including Valencia’s Castellion, Balearics, and Costa Blanca were put on sale with prices dropping 30% to 40%.
According to overseaspropertymall.com quoting a sales agent from Savills estate agency, the price of a luxury villa on Mallorca was scaled back by as much 60%.
In September, GPG published reports quoting Mr. Ignacio Osle, sales and marketing director of developer Taylor Wimpey de Espana citing a recent study that revealed home values in locations such as Costa Calida, Alicante and Murcia are on the rise.
“Alicante, for instance, has experienced improvements in its infrastructure, seeing a second airport terminal open, which is always good news when it comes to attracting more visitors,” Mr Osle added.
The firm also pointed out that the latest figures published by the Spanish government show that the number of property sales increased during the second quarter of the year, compared to the first three months.
