Government urged to stimulate Spanish Property Market

The G-14, a group made up of Spain’s largest property developers, are urging the Spanish government to stimulate the Spanish property market with experts warning it could take over five years to clear the backlog of 800,000 unsold newly developed villas, apartments and townhouses.

The market for new properties in Spain has been particularly hard hit due to the global economic downturn and high exchange rates making it more expensive for buyers from countries outside of the Euro to purchase a new villa in Spain.

However Nick Stuart, managing director, of Spanish Hot Properties claims that the figures may not quite be as bad as some developers claim “one has to discriminate between the International Spanish property market and the local property market. There are a lot of factors that mean the local market will be depressed for a very long time such as high unemployment and wages in relation to property prices”

Stuart added that holiday homes in popular areas such as Marbella and La Cala de Mijas in the Costa del Sol are actually in short supply “The reality is that developers who are prepared to price the properties in good locations to sell are selling and selling reasonably well to the international community and the ones who insist on ridiculous prices will struggle”.