Sunday, December 10, 2006

Prices and Trends

Kyero have just published their price guide and request guide and there is a discrepancy. The average price of a property sold in Spain is now 250000 Euros whereas those who request details and want to come to the country are hoping to pay 150-200000 Euros. Our average house price sale for this year has been 261850 Euros an increase of just 13000 Euros on last year, or roughly 4.5%. The year on year increase in our average house sale last year was 64000 Euros or 33%.

Why has this happened? Well there are a few reasons, one is the slowdown in price increases, secondly, the willingness of owners to negotiate on prices and thirdly the fact that we have positioned ouselves at Valencia Property in this area of the market. It is easy to position yourself at the lower end of the market and sell 100000 Euro shacks for renovation but the satisfaction of the client is not guaranteed because firstly, and most importantly, the properties will not get planning permission to build and secondly the properties are usually out in the sticks and have no water, electric or gas and a telephone is a pipedream. It is easy to position yourself at the top end of the market and try to live on selling a couple of mansions per year with huge commissions involved but we prefer to work hard, give good possibilities for capital gain and renovation and make sure that our clients are satisfied with their purchase and their lifestyle here.

500000 Britons have a property in Spain and another 100000 people plan to move abroad this year. The majority of those purchasing want to do it for a permanent move whereas a reduced number now buy as an investment or for holidays. Investment in Spain is forecast to rise by 75% over the next three years. And the most important factor is always location.

For the whole report view the Kyero blog here

The photo accompanying this report is a house in Olocau on a large plot with four bedrooms but needing central heating, at 270000 Euros.

No comments:

Post a Comment

Ebay Auctions of Spanish Stuff

About Me

Today is a new day, the sun is in the Sky. I wake up this morning and greet the new day.