Experts believe that the decline in the Spanish real estate prices will continue at a moderate pace
The analysts of the Standard & Poors agency are confident that the process of reducing the cost of the Spanish real estate has not stopped, and due to some positive tendencies, at least to a small degree, it will affect the sales growth. Meanwhile, in a number of areas increase in prices is possible. The agency experts predict a decline in prices in the current year close to 2%, and for the next year, they predict stabilization.
The Fitch agency representatives are of the opinion that the decline in costs will continue in 2017 but certainly not in all regions. As far as it concerns the demand for real estate in Ibiza, Madrid, Barcelona, and the Costa del Sol, the process was completed. According to data provided by the leading appraisal Tinsa Company, compared to 2007, residential real estate prices dropped by 40%. Therefore, now is the best time to purchase Spanish property.
According to Julio Gil, the head of the Horizon consulting agency: «Reduction of prices continues, but the pace of it will be moderate." He also believes that the possible increase in the level of sales will start.
"Another significant moment", said Julio Rodriguez, the former head of the Spanish Mortgage Bank, "Banks are willing to lend to customers who want to buy bank real estate in the amount of 100% of its value, but only if a slight price increase happens."
Last year, in January, the price of residential property has risen by 8.9%, and in February, the rate was 0.6%. However, experts say that one cannot consider these findings a stable trend.
The main thing that excites potential customers is coming a better time to buy real estate in Spain. Experts have come to an agreement that now it is possible to purchase housing in areas where supply is minimal. Real estate in Ibiza is situated in such a place but, of course, it is subject to funding. In addition, now, the purchase of real estate would benefit from investment funds and private investors who have pecuniary accumulation. The majority of residents in Spain do not have such ones. Although, experts believe that the perfect time to buy a home is closer than ever and it is of current interest for the other regions of Spain.