04.08.09
Online property demand stays high
The latest statistics from a leading overseas property portal have shown that Spain is still the number one destination for British buyers of overseas property, despite the effects of the credit crunch on the actual numbers of properties purchased. Property Index.com has released statistics showing that Spain leads France, Portugal, Turkey and Bulgaria in the number of enquiries for property in February 2009.
However, the effects of the global economic downturn have been seen in the average price of the properties searched on the portal. In 2008, the average price of property viewed in Spain was £235,223 – a figure which dropped to £211,343 in February 2009, a drop of around ten per cent.
Meanwhile, property in Spain remains much more affordable than in its closest rival in popularity. The average price of property viewed in France was £441,252.
Within Spain, property in Costa Blanca was the most popular, followed by Tenerife in the Spanish Islands then property on the Costa del Sol.
Lee Bramzell, Chief Executive of PropertyIndex.com said, “The British love affair with Spain is far from over, and our data suggests that when we emerge from the recession, it will be the first place on the list for Brits wanting to buy holiday homes and investment properties overseas. While property sale volumes remain low, there is no doubt that the British are keeping a beady eye on the Spanish market, waiting for the right buying opportunity. I expect to see considerable pent up demand when the economy recovers.”
“Tourism both on the mainland and in the islands remains strong and sensible Brits already owning property there will be aiming to maximise their rental income over the coming months while they wait for the market to stabilise. New buyers can get a real bargain – official data shows house price falls in the region of three per cent, but in reality reductions are much greater than this. We are seeing some developers offering discounts of as much as 40 per cent on some schemes. This more than compensates for the strength of the Euro which we expect to weaken against the pound throughout 2009.”