An estimated £12 billion have been set aside for bonus payments to British bankers, to be paid out in the first three months of 2013. Property experts for the Spanish housing market believe the time is ripe for British bankers to put their bonus money where their families want to go on holiday – namely the Costa del Sol, Balearics and Canary Islands.
The average bonus packet for 2012 is expected to be around £100,000 per annum, not quite enough for the rising Florida real estate market, where British bankers have spent their bonus money over the past few years. Falling stock numbers, less foreclosures and rising demand from Middle Eastern buyers have seen Florida property prices rise to levels where returns are minimal.
Portugal’s property market is stagnant, so is the market in Cyprus and Dubai, but in Spain, a country that has seen record numbers of tourists over the past couple of years, property is incredibly cheap. Even at some of the Costa del Sol’s top resorts like Marbella, Estepona and Fuengirola buyers with bankers’ bonuses can look forward to taking their pick from amid bank-owned luxury apartments that are typically offered with generous finance packages from 50% and discounts of up to 60%.
There are literally thousands of luxury apartments to choose from; in an effort to make the sales experience as smooth and as enjoyable as possible, international brokers and Spanish banks have come up with a streamlined solution that will get bankers’ purchases registered and generating holiday lettings income before they’ve had time to tell their families where this year’s summer holiday is going to be.
Spain’s resale market has also seen a resurgence after sellers finally opened their eyes to the realities of the current market and adjusted their prices accordingly. Now sellers in Andalucía are facing facts and accept offers that just a few months ago they would have turned down, said Barbara Wood of The Property Finders, an Andalucía-based property specialist.
This new realism among vendors has attracted more overseas buyers to the Costa del Sol and other property hot spots in Spain, such as Mallorca for example. According to Ms Wood, when the final year-end figures are in for December 2012, the year will show an annual increase in overseas sales of around 20% for her region. However, Barbara Wood believes prices must come down further, predicting price adjustments of 30% to 40% in 2013.
Obtaining finance from Spanish banks is hard for most buyers and at present cash buyers such as bankers with bonuses burning a hole into their wallets have virtually a monopoly, securing property in the most sought after developments.
Another interesting development in the Spanish property market is that ski property in the Granada province has already seen a 50% downward price adjustment, making such properties a great opportunity for investors, property portal Idealista.com recently stated.
According to the portal, this year should see a marginal increase in prices for Spanish ski property and with a good winter sport season still ahead, satisfactory rental yields can be achieved straight away. Skiing remains a very popular sport; for many people it is part and parcel of their annual holiday “plan”.
Winter sport visitors need somewhere to stay and ski property commands premium rates during the winter season. With the main resorts located in the Sierra Nevada, a mere 1.5 hours’ drive from the Costa del Sol, investing in ski property comes with the added bonus of picking up summer rentals, too.
There will always be a limited supply in winter resorts because developments are mainly located within areas of outstanding beauty that enjoy special protection. Not only do properties in ski resorts retain their value better than other regions, they offer prime rental rates in winter and good rental yields in summer through hiking and climbing tourism.