British buyers returning to the Spanish Costas, developer figures show

Despite the challenging market conditions, the leading British developer in Spain, Taylor Wimpey de España, had identified a positive turn in terms of confidence and market sentiment.
 
The Marbella based developer has also seen sales increase during the first eight months of the year. Developments in Mallorca and the Costa del Sol have sold out leading to the launch of new projects in these regions, it revealed.
 
According to the developer prices are starting to rise as well and the buyers are serious ones. ‘Over the last couple of years there has been very limited development, especially in the prime locations in Spain, for example, Mallorca and the Costa del Sol. It is in these destinations that we are now seeing demand for quality and well priced property increase and with limited stock now on the market, in some areas property prices are already starting to rise in response to the demand,’ said Victor Sague, sales and marketing director at Taylor Wimpey de España.
   
‘We have found that there has always been the interest throughout the downturn, however, buyers have been waiting for the market to bottom out before they invest. In the premier destinations, like Marbella, this is without doubt now the case hence the spike in interest and serious buyers,’ he explained.
 
‘Oversupply of property has been suffocating many areas of the market, however, buyers should understand that this is a localised problem, the Spanish market is currently very fragmented. Spanish first residences in and around cities such as Madrid account for much of the oversupply and on the coast the situation varies from region to region, town to town even,’ he said.
 
And he points out that getting the price and location right is a key to doing well under current market conditions. ‘As I have always said, the best units in the best resorts will always sell. Those looking to purchase a bargain home in a prime resort location will be disappointed,’ he explained.
 
‘Yes, prices have adjusted by 20 to 25% over the last couple of years but there are signs that prices are stabilising and there is still a demand for these desirable locations and now increases in asking prices are reflecting this. Many interested buyers have sat on the fence for the last couple of years, sensibly watching the market, in my opinion. Now is an excellent time to buy to make the most of the reduced prices and excellent stock property on offer,’ he added.