The observer among you will have noticed that we are now in our 19th year, with Survey Spain on September 1, 2003.
When I bought my apartment at the time, an operations manager from one of the largest agencies on the coast, at the time, begged me to make sure we bought a place we liked to live and only an investment, “because the costs are only too high. “
I was lucky enough to find such a place, at an imaginable price, and we are still here. But how wrong he was with prices, because they kept rising, driven by a probably insatiable demand, and even more so by the weight of cash to be had for mortgage loans to developers and individuals.
Each phase of a progression had to be more expensive than the last, so agents could show how smart the investment was.
This road inevitably leads to disaster, and that’s how it happened. Having reached heights, it collapsed dramatically in 2007/2008, and in many spaces recently reached the same degrees 14 years later.
It seems that we are on a more powerful monetary basis this time, so any “correction” will not have the devastating consequences of the past.
Countries now have higher borrowing than before, basically due to Covid costs, so there cannot be a bank “bailout” similar to that of 2008 and beyond.
Despite the steps forward and a step back from markets and activity in recent years, with Brexit and Covid being the main “surprises”, 2022 has overcome all that and we are only 3/4 of the way.
The Russian invasion of Ukraine ended the euphoria of “just living with Covid. “This has added a distinctive nervousness to the market, with lots of “making hay while the sun is shining” as we don’t know what currency clouds lie ahead. .
This has led to a significant build-up of buyers of the security of the former Soviet republics, either permanently or as an escape, should the scenario spread in Ukraine. They more than made up for the loss of Russian buyers.
Customers as I write, with Russia officially annexing more of Ukraine, are another step in the direction.
Dramatic increases in energy prices and inflation will affect everyone, although their effects will most likely be disproportionately gigantic for the cheaper component of the market.
Once again, the British, who still make up at least 16% of foreign buyers, and once again, seem to have lost their monetary sense, causing a dramatic drop in the price of the pound. This, along with emerging energy, food and inflation costs, is likely to increase their market share.
It will also inspire existing UK homeowners who are contemplating promotion to do so, as they will get more pounds for their euro and be able to return better to the UK.
That said, space price inflation is still close to 10% annually, so you might realize that not everything is as rosy as they expected.
Those who rely on sterling income will also be affected, which will be buyers from Gibraltar, who were arguably hoping for greater border flexibility as a result of ongoing talks between the UK and Gibraltar with Spain.
This is our 31st market report, the latest being our April “special” report and our January report. Many elements of previous reports still apply, but are not repeated here. Thinking about those of the 2000s, before the monetary collapse, makes you think. Along with plenty of other articles and information, they can be discovered at Survey Spain| Network of RICS certified surveyors
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Values
· Strong demand continues, with classic British buyers shrinking in number, being replaced by more buyers from Eastern Europe, however, there are fears that the market may simply escape turmoil elsewhere.
· As before, the demand basically comes from Spain, Morocco and all the countries of Northern Europe, America, the Middle East and the Far East that also offer buyers, as well as expats of many nationalities in the world. Coast as the position to spend the winter and bad weather of a northern European winter. The Nordic countries have already stood out for their increased interest.
· There is a shortage of source of all types of housing and especially prices, in maximum areas.
· As before, the new structure continues, absorbing much of the demand from buyers, despite above-average costs and very high structure costs.
· Prices have begun to rise and will most likely continue to do so if supply shortages and excess demand continue. Some discounts are still possible, especially for resale properties, and with the cost of living and finances rising, it’s very likely that dealerships will suffer the most in the coming months.
· “Golden visas” have retained their popularity among buyers outside the EU, helping to demand higher-priced properties as they allow you to stay more than 90 days out of 180. The central government promotes a number of styles, aimed at wealthy retirees and “digital nomads,” who can work and live anywhere, basically communicating over the internet with only an occasional “presence” at the head office.
· The weather update is still little or nothing mentioned, although the lifestyle update required by the ever-increasing amount of adjustments will have a hidden effect. Gradually, we started to take into account the energetic elegance (CEE) of the house, ask for solar water heating and “free” photovoltaic electricity, but it is still a smart web connection.
· Marbella nevertheless announced that it had approved its much-revised urban plan and submitted it to the regional planning authorities. Everyone is looking forward to the timing of the agreement or the need for further review. The 1986 plan in which the Municipality was forced to make the paintings evidently bent and chipped.
· The benchmarks, on which asset taxes are based, are a bad joke because they are so vague, peaking well below the current market level.
· In Andalusia, there was a brief ray of sunshine through the fiscal clouds, when the junta announced the effective cessation of wealth tax. Individuals and their businesses were making plans to move to Spain in what would become a low-tax company. This euphoria stopped in a matter of days with the central government’s announcement of its goal of creating new taxes that would have the same effect and simply could not be “avoided” by regional authorities. A great missed opportunity through the application of political dogma, preventing the promotion of wealth creators, and their funds, for the use of Spain.
STATISTICS
As usual, we have kept track of the average difference between the sale price and the actual sale price, when this data has been provided to us by reliable sources. These are from clients to whom we have conducted a home construction/inspection study, and tell us the value they are actually paying for the assets after receiving our report.
Average difference between the sale price and the actual sale price.
Last quarter 2021
October to December – 9. 39%. From 0%, where the sale price was paid, to -18. 6% for an asset that had structural problems and needed a SWOT.
First quarter 2022
January to March: 5. 72%: This was a busy quarter, reflecting post-covid optimism, before Putin’s war began. With a range of -1. 74% for an apartment in a privileged area in Marbella, to -10. 14% for a townhouse in Marbella, where our house construction/inspection study had detected imaginable structural problems.
Q2 2022
April to June – 4. 63% – This difference is the smallest, but the average is synthetic as it ranged from -16. 06% for an asset with document problems, to two homes in Mijas and Benalmádena, where the original homes stood out especially between the initial sale value and the final sale value, resulting in increases in value. However, this reflects the strength of the market at the time.
Q3 2022
July to September, 7. 09%: this is the last peak quarter, where the market may be starting to reflect the severity of the European and global economic situation and traders are more nervous and willing to settle for offers at a price below the asking price.
Multiple Listing Changes – Online Resales
Unfortunately, we compared with previous reports because the search parameters have been replaced, so the comparison of numbers is now limited to one region. We chose the Costa del Sol as the maximum asset on the site.
We discovered on 1 October 2022 that there were 14,841 homes for sale at €100,000 or more, of which 131 (0. 9%) were known as new developments. There were 3,579 (24. 12%) at €1,000,000 or more, with (43. 75% of the total) representing new developments.
1,591 (10. 72%) of the more than 100,000 homes get 10% or more since the first listing, particularly below the previous record of 15. 84% in January 2022. Those that value the most are 1,281 (8. 63%), which is higher than the last 6. 52%.
1,595 were discovered available for long-term rental, of which 1,271 (79. 69%) at more than €1,000/month, the minimum wage in Spain, and only 17 (1. 07%) at less than half. On the other hand, 679 (42. 57%) were going to have € 2,000 / month, double the salary, and 227 (14. 23%) at € 5,000 / month
An analysis
The variation in value, or -10%, can mean that distributors feel more secure, because discounts are smaller and increases are greater.
The lack of lower rents might just be a mirror picture of the agencies involved in registration, but it implies how difficult it would be for low-income families to find housing, as they tend to be employed in service businesses. Speaking of bars, restaurants, and many other business owners, they struggle to find staff. Recent, genuine, proposed changes, which give tenants more rights, threaten to make landlords less susceptible to taking on the threat of renting, further reducing the amount of available space. .
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