luxuryhouseintheworldAs an example of price drops, one vendor I know bought a top floor apartment with roof terrace at the development a new for €195,000 which he is now trying to sell for €85,000 but he hasn't had one viewing in 7 months. Even at that greatly reduced price, he is now competing with property in far better locations (on a completed golf course next to the beach) and with facilities just a few minutes walk away. So is his property a good buy at €85,000? Well actually no; a property is only ever worth what someone is willing to pay for it and if the price is not even attracting viewings what does that tell you?!
There is no doubt that the real estate prices in Spain have fallen if the market is viewed as a whole. Upon closer examination of the figures it cannot be confirmed that the decline is actually 30% - 48%. Holiday homes in choice locations have certainly fallen in price but only in the region of 15% - 25%. Some luxury villas in prime locations, no changes have been noticed at all.
These statistics have one thing is common: they are built on the condo market in the economic centres and urban structures, not on real estate in the Costa´s. These statistics are about the Spanish market/buyers/sellers. (as you can read the respective indices and how to evaluate them, refer to the points FotoCasa and TINSA).
In a market with so little transparency as is the Costas's second home - holiday market it is almost impossible for potential buyers to find the right property without the support of a consultant.
A crash can bring a loss to one person, however profit to another. As a buyer you should always ask yourself what is better: to buy in an overheated market or in a market that is in consolidation.
The plain fact is that there are a lot of well priced, well located properties on the market right now and, perhaps contrary to what you might have heard, there are buyers buying them! With prices being slashed, buyers are getting far more value for their money in far superior locations.