subject: Property In Andalusia To Recover In 2011 [print this page] Property In Andalusia To Recover In 2011 Property In Andalusia To Recover In 2011
Property in Andalusia is could well see a full recovery in the early months of 2011, if not before, because of the continued demand and growth in the international economy.Andalusia has always been the most popular region in terms of foreign demand for property. Because demand was so high, and because the primary reasons for purchasing were lifestyle reasons, demand for property in Andalusia continued even as the international financial crisis caused complete crisis in housing markets around the world, including those in Spain.The consensus among agents is that leads on Andalusia property dropped by 25% at the floor. During this time sales fell away completely, as the continued interest made agents push harder to convert without lowering prices, when, of course lowered prices was all that buyers wanted, having heard about the depressed Spanish property market.As time passed, it became obvious that sales would not improve unless prices were lowered, and in the last few months there have been significant increases in sales in several regions, including Andalusia, on discounts of between 15% and 25%.The best properties are currently selling fastest, as the world's wealthy capitalise on their readiness to buy to secure prime properties at sub-prime prices. The question now for Andalusia and many other popular Spanish regions, as well as those in similar situations round the world (those seeing accelerated sales on discounted properties) is how to phase out the discounts.The answer in the case of Andalusia is never. If it is looked upon as removing discounts then it may be too much of a bump in the road when buyer confidence is still very weak. With all the bad press the Spanish property market has endured, buyers feel more confident if they know that they are getting a property at a reduced price.Instead, Andalusian property agents should phase the currently discounted prices into the mainstream, and let the market return to normal in its own time.However, it is worth mentioning that many Andalusia property developers plan to clear their existing stocks at the current levels of discount, and to make a fresh start on new developments. This will be done when confidence returns, and will allow the market to return to normalcy in a fairly natural way.The question that this leaves is, when will confidence return. That is a difficult question to answer. But in this respect, one aspect of the downturn will actually be helpful. Property buyers are doing more research than ever, and no longer clumping regional markets together as part of a country as they would in 2007. This means that the likes of Andalusia, needn't be tarred with the "over-developed" brush, simply because buyers know there are problems with over-development in parts of Spain.Therefore, confidence returning will be that in the international economy, which is widely expected to start in 2011. Thus, if developers can clear their stocks this year, as they are well on track to doing, then 2011 could be a good year for Andalusia.
