One developer says the secret of selling property in Spain is to reduce prices in line with the market, while maintaining high design standards and creativity.
Prices have dropped by 40% or more in some cases, but luxury properties have held their prices better. Interest from foreign buyers has come mostly from Russians, along with the Middle East and other Northern European nations.
The reason why some developments have been continually successful over the past year or so is where developers have continued to update and improve their designs whilst reducing prices accordingly to the market i.e. 20-40% and in some extraordinary cases even further… In the luxury sector for properties in prime locations the reduction has been less as those properties normally maintain their value better than those in secondary locations with lesser qualities.
Clients who want the very best the market has to offer will pay elevated prices if the product meets their expectations
…and they demand more creativity and modern styling.
Today’s buyers are changing, too — insisting almost exclusively on prime locations where sea views are an absolute must along with quality designs. Buyers are extremely selective and have a wide variety of products to choose from therefore we are obliged to offer only the very best of what the market has to offer. Interest in Andalucian rustic-style homes is very rare these days, replaced by modern open spaces and high ceilings, today´s buyer will not settle for second best.
Most interest from overseas buyers is coming from the Russians, where the middle class has more disposable income, he explains. The Russian middle class is increasing and becoming affluent whereby, so now able to buy properties overseas in sought after locations. Overseas interest in Spanish property has also been strong from buyers in Britain, the Middle East, Sweden & Norway.
Luxury villas in popular Spanish locations are selling out when they offer the finest qualities and materials, including large covered terraces, private gardens, 3-5 bedrooms, elevator lift, sun-roof with private plunge pool, private garage, home cinema, gymnasium and steam room. The properties were originally on sale at over €2,000,000, but prices have now dropped to €1,450,000 unfurnished and €1,650,000 furnished. All properties have a mortgage of €900,000 that can be assumed upon bank approval.
The new ICF (insulated concrete formwork) Spain construction system is now being used in new construction of buildings, consisting of special building modules containing steel wires that can be filled with concrete and are strong and quick and easy to use – making properties more efficient with heat in the winter and cooling in the summer months.
One of the major strides made during the crisis is investing into and implementing a completely new and revolutionary construction system (Sismo Spain) to build higher quality structures of monolithic concrete accompanied by high insulation values. The standard is dramatically improved and the build time considerably reduced. This is the future of construction!
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