Spanish property has been on a rocky road in recent years but with 2014 just around the corner, investors will be looking to see whether the coming 12 months will be more of the same or if there are brighter times on the horizon. The Spanish Brick is confident that things will be looking up, however, and in 2013 there have been some positive signs. Indeed, the year has seen the purchasing power of overseas buyers confirmed, increasing 23 per cent in Q2 and 25 per cent in Q3 year-on-year. So will it be more of the same in 2014?
It looks like it. The Spanish Brick thinks prices will keep dropping until the bottom is reached, with the greatest falls taking place in the first half of the year. "We have already seen property prices adjusting rapidly in the last quarter of 2013, and we can predict that Q1/2014 will experience a general property pricing fall," the company said in a statement.
However, this doesn't mean investors have all the time in the world to snap up property. In fact, bargains are expected to move quickly and spend an average of just two weeks on the market if they are priced correctly. Britons will also be the most active, continuing a long-running trend. " We expect more UK buyers coming to Spain , according not only to the growth of inquiries that The Spanish Brick has been experiencing but also to the growth of Spanish property searches that the main portals have reported," noted The Spanish Brick.
Meanwhile, appetite for risk is expected to return somewhat. More risky properties are expected to be exposed by bank repossessions and agents. However, there is a risk investors could get trapped by cheap properties that do not have all legal paperwork complete. This could cause low-budget buyers to become "new victims" The Spanish Brick claims, as people go on a search for would-be bargains. Diligence will continue to be important in the market.
Article by Steve Binge