Recent research into the Spanish property market indicates that it will recover before the economy which is the reverse of what usually happens. Developers in the country are increasingly optimistic with Taylor Wimpey de Espana reporting an increase of 25% in the number of properties sold in 2010 when compared to 2009. This has resulted in most of the stock being sold.
Customer enquiries increased by 27% in the third quarter of 2010 and primarily came from people looking for retirement and holiday homes. This increase in sales and interest has prompted Taylor Wimpey to start development in three new sites in Spain where 30% of the properties have been sold off plan already.
Spain will always remain a hugely popular country for British holidaymakers and those looking to retire there or to purchase second homes, and although the downturn did affect demand homes in sought after locations are continuing to sell well. These include homes in the Costa del Sol and Marbella. Although the Spanish government has reported a glut of homes for sale in less popular regions some Spanish property developers are refuting these numbers. Official reports say there are about 1 million unsold properties whereas the developers say there are just 350,000 unsold homes.
It remains to be seen which reports are true and many believe that rental yields here will continue to fall before picking up later on in the year. But if the property market here is beginning to turn around and then investors might wish to begin researching seriously now before the traditional upturn in house sales in the spring.
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