Article from Spanish Real Estate property portal
The Costa del Sol continues being one of the main destinations for the sale of Spanish homes dedicated to tourism. The banks’ stock of homes in the Costa del Sol continues being reduced with the attraction of not only the weather, but of newly built houses and very attractive prices.
On the other hand, in other areas of Spain, it’s already been five years since the housing stock on the beach has not been reduced, but to this phenomenon we have to add another: the banks are now the principal sellers, up to the point that of the 22,127 homes that shape the residential inventory of Malaga, 10,373 are already in the hands of the commercial teams of the financial entities, according to a report from Aguirre Newman consultants.
The stock of new houses has been reduced by 12.35% with respect to the last year, states the report, and new promotions have hardly been commercialized. Only two were started last year, according to the consultant. Properties under development are hardly being sold either, so that “98% of the available stock is found in a turnkey situation,” concludes the report.
The key is in the homes that pass from the promoter to the bank. The pouring of homes from the promoters to the banks has also provoked a “descent in the average price of the home of 12.6% during the last 12 months.” See list of New properties in Manilva (Costa del Sol) in Developers and Banks hands
The banks will monopolize most of the market in the next year “in a more prominent way” 30.3% of the supply of homes in buildings (high-rises) on the Costa del Sol is found in stock; while with the single-family type, the figure has descended to 34.4%. In general terms this means that 30.7% of the total homes on special offer on the coast are finding themselves being unsold.
According to the consultant, the average size of “the development of high-rises in the area reaches 98 units” and for single-family residence development it is 30 units, similar to last year.
Inside a high-rise, the typical home is a two-bedroom flat with an average area of 131m² and an average final price of 253,061 euros, which represents an average value of 1,937 euros/month. In the case of the single-family home, we are referring to a detached three-bedroom home with an average area of 236m² and with a final price of 383,136 euros, which represents an average value of 1.621 euros/month.
With respect to 2010-2011, the number of commercialized developments by these entities reached 20% of the total, and during 2011-2012, the percentage has increased to 34.4% of the total of the 270 ongoing developments.
Translated to homes, the banks have gone on to manage 10,373 homes, and “one could predict that this will increase in a more prominent way, if that’s possible, in the coming year.”
As a principal sales tool, they make a strenuous attempt to ease the access to financiation, of course, exclusively in the sale of their homes. This last aspect, together with a significant reduction in the price of the home, is what really invigorates sales.
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