Costa del Sol maybe breaking the mold in 2013…
The only people reducing the property prices on the Costa del Sol today are the banks with their less-than-favourable repossession stock and smaller builders/construction companies who have homes that literally nobody wishes to buy.
A developer of a luxury golf resort near Marbella has actually pledged he will increase property prices up by 8% from first Jan 2013 having actually sold out all but twenty or so of his 267 apartment complex.
However they may have to re-look at this if the Government goes through with its policy to raise the VAT threshold from 4 % to 10 % following year.”
VAT on property transactions was slashed short-term from 8 % to 4 % by the previous Spanish Government in 2011 to get the property sector moving again … When Prime Minister Mariano Rajoy assumed workplace in December that year, he expanded the decrease would be to the end of 2012. The policy might have worked, sales figures for new construction and property sales where up 3% every year, and numerous believe that the Prime Minister will not wish to stall this recovery.
If you speak with banks, solicitors and other key figures few think the Prime Minister ‘Rajoy’ would be very silly to raise VAT up to the freshly raised reduced rate of 10%. An extra 6% would add 15,000 euros in expenses for a property priced at 250,000 euros– tough to eat at a time when the Spanish construction area really needs to be boosted.
Buyers … The Belgians, Dutch, Russians, Scandinavians, are hot on the popular coasts like Costa del Sol and Costa Blanca as they realize that properties are at their lowest and represent stunning value for money.
Mid to high range apartments selling for 250,000 euros today were priced at 500,000 to 550,000 at their peak, now you have great choice of properties are half that cost, and we don’t think the British buyers rather are seeing this.
The UK sector used to control the marketplace, making 60 to 70% of overseas purchases, but now just 19% of all sales in 2011 where to the Brits. Meanwhile investment by Russians soared almost 28% from 2010 to 2011 and Chinese buying power was up by 7%. Re-stamping that Spain is planning to offer residency permits to non-EU capitalists for property purchases over 170,000 euro.
.. // End.