Why Spain’s ‘cooling’ property market is no reason for prospective buyers to worry
Naturally, it can’t be expected that all of the various Spanish property market statistics will always be positive ones. Nonetheless, if you have been wondering whether to buy a luxury villa in Sotogrande, you may have noticed a recent story indicating that house sales in Andalucía fell by a whopping 20% in August. Is this reason for concern for anyone contemplating snapping up a property on the Costa del Sol any time soon?
The short answer is: no, it isn’t. Yes, it’s true that according to the Institute for National Statistics in Spain, residential property sales across the region during the eighth month of the year declined by a fifth compared to the year before, with the 7,278 properties changing hands representing a marked drop from the 8,733 recorded for August 2018.
However, there are several other factors that should be considered alongside this figure, and not just the customary tendency for the August figures produced by Spain’s notaries to be lower than those for other months.
An upturn in construction activity
For one thing, the experts are predicting a continued bright future for the Spanish property market, with one analysis from a well-known global real estate advisor indicating that the hardships the country faced in the aftermath of the late 2000s global financial crisis are now very much in the past.
Figures that point to this include heightened construction activity – and sure enough, the proportion of sales accounted for by new properties in Spain was up to 18.2% during August, with 6,426 transactions recorded. This is an especially significant development, given that it comes after a period of almost a decade when practically no residential properties were built.
When this factor is considered alongside such others as growing interest from overseas buyers and continued steady price increases, those looking to buy a luxury villa in Sotogrande or elsewhere in Andalucía should not be overly concerned.
Supporting this stance, property expert Adam Neale recently wrote for The Olive Press: “If there is a market and price correction to come it is likely to be a moderate one, as the growth cycle has not seen a ‘mad boom’ but a moderate up-cycle, with steady growth in sales and property values.”
Make BM Sotogrande your partners in your search for Sotogrande property
Here at BM Sotogrande, we’re happy to report more than a steady growth in sales. In fact, we sold in excess of 6 million Euros worth of property over just two months: 3 million Euros in September and 3.1 million Euros completed in the first week of October. Proof, in any were needed, that consumer confidence in Sotogrande is still going strong.
When you are seeking to make your dream of owning an opulent property on the Costa del Sol a reality, BM Sotogrande stands ready to assist. Simply get in touch with our professional and experienced team today to learn more about how we can help you to find the ideal property in which to start your exciting new life in this corner of Andalucía.