Property Sales Update - SUR

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sunkissed
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Property Sales Update - SUR

Postby sunkissed » Fri Feb 24, 2006 2:13 pm

This weeks article.


Fall in property sales in the province of Malaga leads to rise in rentals


Around 1,400 new estate agencies had opened in the last two years but some of them have already closed

It takes three times as long to sell as a few months ago


After months of being out in all weathers and camouflaged by layers of dust, the sign saying “for sale” is removed and one saying “to let” takes its place. The drop in property sales in the province of Malaga means that many owners who bought homes as an investment, with a view to a quick sale, are now putting them up for rent.

Many of these investors are having difficulty selling their property and obtaining the cash that had been stashed away in their brick and mortar money boxes. The reasons? On one hand the profit is no longer so great and on the other it is harder to find purchasers. Estate agencies admit that it is now taking three times as long to sell property as a few months ago. Those consulted say that flats and villas on the coast can now take as long as 30 months to sell. Meanwhile the owners have to keep paying the mortgage - something they had often not bargained for.

Faced with this situation investors have had no choice but to let their property, as this helps pay the mortgage at least. It also means that they can hang on until the market is more buoyant again.

“We have gone from a boom to a more normal situation and that is beginning to show”, admits the chairman of the College of Real Estate Agents, Cayetano Rengel.

Estate agencies

Nobody has used the word “crisis” yet but estate agencies in the province of Malaga are noticing the effect. In the last two years alone 1,400 new estate agencies had been opened all over the province, but with the present situation some of them have already had to close. This is especially true in rural areas, says Rengel. The recent situation was quite unusual in these areas, he says. “There were even more real estate agencies than bars, just everybody was in the business”, he points out.

Florencio Morales of the agency Hermocasa in Archidona confirms: “There is not enough property for sale to go round”, and explains that many estate agencies are combining this activity with another business to make up for losses.

Pedro Repetto, the owner of Servicios Inmobiliarias Alhaurín, comments: “So far, to my knowledge, three estate agencies have had to close down in this area”, adding that the way property is sold will have to change.

Lucía Riaza of Unicasa in Benalmádena stresses: “It’s very hard to sell now. There are not so many foreigners around with cash in their hands”.

The keys

Speculation

Before: Five years ago, with the Stock Market crisis, thousands of people in the province of Malaga invested in bricks and mortar. This real estate boom meant that prices shot up. Speculators doubled their money in a few years.

Now: With a plentiful supply and high prices the pace of sales has dropped. Escalating prices have eased off, which means that short term profits for property sellers are lower.

Price and pace of sales

Prices: Experts say that price rises have hit a ceiling and they do not foresee any further big increases this year.

Time: On the Costa del Sol property takes up to 30 months to sell.

chrisuk
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Postby chrisuk » Mon Feb 27, 2006 2:22 am

mmmm interesting and heres me thinking what the rent market costs are going to be, any ideas as Im thinking along these lines for long term rental in or around Malaga, PM me anyone if you have the right type of pricing, not interested in mega rich marble laid houses and no apartments, I have 2 dogs...also not interested in the "you wont get a place because you have dogs" nonsense and saying I'll pay more, I wasnt born yesterday.

They say the Eglish newsapapers are a great source for this sort of thing, any tips..ideas.

Cheers

sherlock holmes
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Postby sherlock holmes » Mon Feb 27, 2006 12:41 pm

buy a copy of Sur in english - they have pages of rentals you'll get all the details in there or the other smaller English papers.

chrisuk
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Postby chrisuk » Tue Feb 28, 2006 4:34 am

thanks for that..

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ian.wilson
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Postby ian.wilson » Tue Feb 28, 2006 11:51 am

chrisuk

Don`t buy it!

It`s Free.........
Oh Yes! another day in paradise!

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petert74
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Postby petert74 » Tue Feb 28, 2006 12:11 pm

Does anyone know about property prices in Cadiz region. (ie Algerciras + Los Barrios).

Are they expected to fall???


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