According to the Ministry of Housing of Spain, three quarters of 2010, sales of holiday villas to foreigners fell by almost 90% over the same period in 2006. In the third quarter of this year, the number of property transactions fell by 16% when compared with the previous quarter, according to Spanish Property Insight.
Related article: Real estate in the world is more expensive because of billionairesIn this case, is currently on the market has accumulated a lot of unsold real estate, which appeared during the construction boom. Then the developers relied on foreign buyers, whose home on the coast are always in demand. But their hopes were dashed. For example, the three summer months of 2010, foreigners bought 490 homes in Spain.
According to independent analyst Mark Staklina, in the absence of demand for new homes from the situation of foreigners in the primary housing market getting worse, because at the current level of unemployment in the country, Spaniards are unlikely to eliminate the existing oversupply.
The demand for Spanish property from the Russians, as the president of the Alliance of Property "LuxInvest" Elena Kofeynikova, not decreased. One reason for the continuing interest: it is now an opportunity to buy at very competitive prices real estate listings, which are on the verge of exclusion. "At the moment, the market can find great deals: new home on the coast sell for 100-150 thousand euros," - says Ms. Kofeynikova. She believes that these proposals will do more in the next two years. That's how much time, in its view, need to sell off stocks of the alienated property.
Elena Kofeynikova also noted that Russian buyers are interested in not only economically advantageous offer. For example, luxury properties in Spain, she says, often become just the Russians.
Specialists of the company «Runiga» argue that current sales of Spanish property Russians greatly inferior to the pre-crisis. If we compare with 2006, today the number of sales of Spanish property Russians decreased by about 70%. However, this year the interest of Russians to the Spanish property market has increased significantly as compared with 2008-2009. And in the future we can expect a gradual increase in demand.
The situation on the market
According to official figures of the Spanish authorities, the number of proposals on the Spanish property market is about 688 thousand in the same time, according to the annual report of the consulting company RR de Acu?a & Asociados, the market has accumulated about 1.5 million are not sold-out facilities.
Oversupply complements a large number of alienated property: is now on the market are about 100 thousand houses and flats, which came into ownership of banks. "Getting rid" of alienated objects, banks make a discount of more than 30%, offering mortgages for up to 40 years. This drives down prices on the Spanish housing. According to company forecasts R.R. de Acuna & Asociados, over the next five years, they will fall by 20% (most significantly - in 2011).