Spanish property prices in prime locations could be nearing the bottom, painting a brighter picture for the next 12 months, according to Taylor Wimpey Espana. The firm claims that with the Ministry of Development reporting the lowest drop in values since 2010 in Q3 , quality homes in popular spots will soon see price falls cease. Indeed, properties are actually becoming more expensive already in several regions.
Marc Pritchard, sales and marketing manager of Taylor Wimpey Espana, claims this trend will continue into 2014. However, properties in less attractive inland locations, which suffer from reduced infrastructure, will see prices fall further next year, with the bottom yet to be in sight. This is broadly in line with general forecasts but there is some positivity circulating around the market.
It seems there is a general feeling that the end of price adjustment isn't too far around the corner. The Consumer Confidence Indicator for November, from the Centre for Sociological Research, revealed that 46.4 per cent of those surveyed think Spanish housing prices will stabilise over the coming year, pointing towards improved confidence in the market.
"We are expecting sales levels in 2014 to be in line with 2013," Mr Pritchard said. "However, seeing as we will have additional sales outlets and several new developments in the pipeline across all three regions of Spain in which we operate, coupled with the fact that prices in prime locations across each area have now bottomed out and will not fall any further, we are hoping sales volumes to increase making for an exciting new year."
An increase in foreign buyers is likely to add to this excitement, with Taylor Wimpey Espana predicting a surge of investors from outside the EU, such as the Chinese, Russians and Middle Easterns. This is thanks to the promise of the Golden Visa scheme, which could be introduced by January 2014. It is expected that as buyer numbers swell, areas like the Costa del Sol will continue to be popular.
Article by Peter Mindenhall