|May 25, 2014||No Comments|
In 2013, a government backed medium was introduced to help sort out the Spanish financial crisis with a big focus on the country’s property market. Sareb, is also known as the “bad bank” as it has taken on around 200,000 real estate loans handed out by lenders and banks that could not be repaid. By the end of April 2014, Sareb had sold more than 5000 properties compared to just 9000 during the whole of the previous year. Approximately 80% of the 200,000 bad loans were loans given to property developers. The remainder were loans for apartments and houses, commercial premises and plots of land. The price of land has been hit harder than anything else in Spain, with many rural plots now being considered as practically worthless.
The increase in Sareb sales indicates now is a good time to invest in Spanish property, as prices are extremely likely to stabilise without any further drops. In other words, if you buy now, you will get the property at the lowest price before property values begin to rise.
In March, lending for purchasing a property rose by 2% compared to March 2013. This is the first rise in four years, and albeit small, it is a further indication that the Spanish property market is finally picking up.
With Spanish property prices still around only 40% of their peak in 2007, now is an excellent time to buy. Although Javea property sales were not hit as hard as those in many towns in Spain, prices are still incredibly low considering what you get your money. Those who are considering buying a property in Javea, or indeed anywhere else in Spain, are advised not to wait too long if possible, because it appears to be inevitable that house prices throughout the whole of Spain will rise in the very near future.