In many magazines and on internet blogs can you often read that a cash buyer can today bargain 40 – 60 % off the list price of prime property in and around Spain’s high end resort; It’s Not true. You must look at the back side of every article and blog and see what they are talking about.
The biggest problem is the Spanish Bank, Spain’s unsold stock, maybe as many as one million units, those mass-produced, boring, poky apartments in high density developments in middle of nowhere, the wrong locations, for which demand has all but disappeared and, apart from one or two gems, it is this type of property that dominates the lists of banks’ repossessions. Which greedy and speed blind bank directors borrowed out huge building credits to, without having a clue if there was any buyer for the properties.
Now they are sitting there again like they did after the 1990 property crash and many of the Spanish bank have now set up real estate divisions, with nice web sites, trying to shift this stock, packaging the product with very favorable mortgages that are enticing buyers in and, at the same time, giving struggling developers a real wake up call.
Those properties, which nobody wants before or today and definitely nobody wants tomorrow, are the properties that you can buy with a discount of 40 -60 %. So don’t think you can do a good investment and buy any of these barging properties.
The property market prices has going done in Marbella, comparing with last years prices. We have seen a price drop of 10 -15 % for lovely apartments or a villas close to the beach and in good lovely areas like Elviria, Los Monteros, Cabopino, Golden Mile, Nueva Andalucia, Puerto Banus or Marbella town.
The official statistic for the prices on Spain’s coast has fallen by only about 13 % in the last twelve months, April 2008 to April 2009.