- 74% of respondents are still looking to buy Spanish property.
- Temporary loss of spending power from the pound to the euro is the main reason why people are waiting.
- 63% of respondents are looking to property to supplement dwindling pensions over the next 10 years.
The desire for British and Irish buyers to purchase an investment property or holiday home in southern Spain is as strong as ever, despite the financial restrictions of the credit crunch. This desire is being fuelled by the need to bolster diminishing pensions.
These are just a couple of major findings from a new Spanish property survey carried out by Marbella-based property company Andalucian Dream Homes. As one of the only big agents left on the Costa del Sol, Andalucian Dream Homes wanted to gauge how buyers are thinking and feeling about Spain and about buying Spanish property in general.
Group Marketing Director Adam Godwin explains more: “Although actual sales on the Costa del Sol are down on previous years, the numbers registering an interest in Spanish property through our website show that desire and demand is returning.
“We advertised throughout the Christmas period and saw a sharp uplift in both visitor numbers and new registrations, which clearly shows the desire to find out about Spanish property is as strong as ever. In this new-look market where interest is high and prices are low, there are other hidden factors at play so we surveyed our database to find out what they are.”
While most agents are focusing on buyers’ budgets and timescales, Andalucian Dream Homes’ goal is to uncover these hidden factors and then develop the appropriate products, services and information needed to fit the current market. The survey results are fascinating as well as extremely positive for Spanish property in the mid to long term.
Top 5 survey findings:
Despite the credit crunch 74% of respondents are still looking to buy Spanish property.
Spain will always be one of the most popular places for those who are ready to invest in property. Its many natural lifestyle advantages such as climate and proximity to the UK ensure it will continue to be a safe and reliable choice. The Costa del Sol is also one of Europe’s favourite holiday destinations and the new airport expansion means the region is set to see in excess of 20 million visitors per year – providing a captive market for those buying to let.
63% of respondents believe property to be the best option for supplementing dwindling pensions over the next 10 years.
Taking personal responsibility for pension provision has been a major theme of the Labour Government and has caused many to look at property as a long term investment. Whilst prices inevitably rise and fall property does, over time, recover better than other investments, making it an obvious choice for those looking to enjoy a comfortable retirement whilst enjoying their investment at the same time.
Temporary loss of spending power from the pound to the euro is the main reason people are waiting to buy, with 55% saying this affected their decision.
The exchange rate has affected property sales but the situation is temporary and is likely to recover to some extent during 2009. However - in real terms - the buying power of the pound hasn’t actually changed. In many instances, the weak pound is cancelled out by lower selling prices. Those sending funds back to the UK are reducing asking prices as they can get the same amount of pounds for less. Developers are also offering major discounts on new units. (Examples available on request).
Only 10% of respondents had any faith in investing in stocks and shares.
The volatility and vulnerability of investing in the stock market was highlighted to great effect during 2008 and has frightened away many investors for good. Property offers a far more stable investment vehicle, especially for those looking to gain in the mid to long term.
Whilst scare stories have had an influence on buyer behaviour, the exchange rate is the more important factor.
Despite what the papers say, for every one unhappy buyer in Spain there are 100 happy ones delighted with their choice. Taking simple steps - such as budgeting properly and using a reputable agent like Andalucian Dream Homes - will massively reduce any risk attached to purchasing overseas.
Other points of note in the survey were that buyers felt confused about how to recognise and choose the best locations and – in these times of big discounts and fluctuating exchange rates - how to accurately assess the real value of a Spanish property.
Massive interest in Spanish property
The response rate to the Andalucian Dream Homes survey was excellent, which demonstrates there is still massive interest in Spanish property despite the economic and market changes over the past year. However, it’s obvious those who are interested in purchasing have legitimate concerns about a range of issues.
Adam Godwin continued: “Over the coming months Andalucian Dream Homes will be continuing communication with clients and providing solutions to overcome these concerns.
“We have already begun taking action to help would-be buyers. For example, the pound to euro exchange rate is a major issue for many, so we’re in discussions with vendors to drop euro asking prices. Those looking to send funds to the UK can now afford to drop asking prices considerably, and we’re making that happen for our clients.
“Our survey has given us excellent insight into what our clients want and need and the results will form part of our business strategy for the next two years.”
Source: Andalucian Dream Homes