The latest Spanish property market data from the National Institute of Statistics (INE) suggest that property sales in August were up 1% on the previous month and 26.6% year on year. In particular, resale properties had a good month in August with sales up 34% compared to last year but Spain as a whole is extremely confused
The Spanish property market is still 24% down on 2008 and transactions are 45% down on 2007 However in Mallorca property prices rose by a 3.7% and Barcelona by a whopping 44% and minor increase in Galicia and Cantabria. However this is where the good news ends with the Costas and there huge oversupply of property still causing prices to be reduced considerably. However in Costa del Sol this only tells half the story because the oversupply is primarily for apartments up to 500,000 and once you get over this price it can be very difficult to find discounted must sell property. Villas above 700,000 very much fall into this category.
Compare this to Mallorca where property prices actually went up and you can see that Spain is very confused at the present time but only 4 places are showing property price increases and the figures from Barcelona are also very interesting indeed.
Long term we can see a stark choice between the two major Costas of Spain i.e. Costa del Sol and Costa Blanca where you could be talking a 100,000 difference for a similar apartment in a similar type of location. Come the second half of 2011 we believe that you won’t be able to buy anything of real quality under 200,000 and you will still be able to buy in Costa Blanca for real quality for 200,000.
My view is that a picture of where we are at and how many real buyers are out there in a stable market will start to unfold in January 2011 but until then it’s very confused to say the least