Spain property market remains weak despite improvements

Friday, January 21, 2011

Spain property market remains weak despite improvements

The Spain property market improved marginally in November 2010, following a weak October, with Spain property sales improving by 20 per cent month on month. However, sales were down by 8.6 per cent compared to the corresponding month last year.

According to official figures, there were 28,732 Spain home sales in November, including 15,957 new home sales and 16,789 resales.

Mark Stucklin of Spanish Property Insight comments: “The annualised decline [in the Spain property market] looks like it is starting to bottom out. That sounds like good news, but in a way it is a reflection of how far the market has sunk.”

He added: “After signs of a feeble recovery in the first half of the year, the market bombed in the last three months as a VAT hike kicked in and bad economic news failed to raise spirits.”

Despite the property market crash, Spain remains the most popular destination for Brits dreaming of owning a home abroad, and is currently attracting many more bargain hunters seeking to take advantage of significantly cheaper homes in Spain.

Barcelona property sales increased the most, up 31 per cent year on year, while the markets remain weak in popular destinations such as Murcia, Malaga and Almeria.

To read our guide to buying a property in Spain, click here.


A Place In The Sun