Buyers from overseas are helping to keep the property market bouyant during the economic crisis.

Sur in English | Noticia

There were 90,746 property sales in Spain in Quarter 2 this year, representing a 22 per cent increase on the first quarter, according to the latest figures released by the central Government.

It is overseas buyers looking for property bargains who are once again the driving force in the market, according to many real estate analysts.

“Economic and political uncertainty, with unemployment over 20 per cent and general elections in November, are making Spaniards wary about buying primary residencies, let alone holiday homes,” says Mark Stucklin, founder of spanishpropertyinsight.com. “Much hope is being pinned on foreign buyers coming to the rescue.”

The data published last week indicates that in Malaga, 1,110 homes were bought by overseas buyers in Quarter 2, the province with the second highest sales to foreigners in the country. Alicante was the area with the most.

“There has been a crash in the market, as we’re all aware, but those who are serious about picking up a good-priced property will find some great deals on the coast,” says estate agent, Jeanette Wilson.

“Cash-rich buyers, especially those looking to buy at the top end of the market, are able to purchase properties 35 to 40 per cent cheaper than they were three years ago. I’d say if you can afford to buy now you should as it’s thought prices will start to creep up again soon.

“For example, where once it would be unusual, or very lucky, to find a five bedroom villa in the more exclusive areas of Estepona or Marbella for under a million euros, now it wouldn’t be nearly so difficult to come across one.

“Generally, in my experience, the non-Spanish nationals who are buying this year are not looking for holiday homes; they’re looking for a main residence.”

In a survey carried out by ‘A Place in the Sun’ magazine last year, more than 60 per cent of potential British buyers would consider Spain, once again making the country the favourite overseas destination for Britons.

“The Brits have had a long-term love affair with southern Spain. A few years ago people were considering emerging markets such as Egypt, Morocco and Bulgaria, but the global economic crisis combined with the political instability in North Africa and the Middle East, has meant that people are now reverting back to what they know best - Spain. Spain, France and Italy in particular are regarded as a safer bet for a home in the sunshine,” says UK-based realtor, Frank Hylett, who specialises in overseas property.

Steve Dibden from Milton Keynes has recently bought a penthouse in Puerto Banús. “My friends and I were holding fire and have been watching prices steadily come down since 2008, but now, thanks to the property crash, we’ve been able to afford a pad that previously would’ve been a serious stretch for us.

“Many people in our situation are now thinking that the time is right to look for a property in Spain. In real terms, prices are at an all time low in many areas so it’s the ideal time to go for it.”

Fuente original