It was not so long ago when many of us flocked to Spain to by our little piece of paradise, but since those unusual times Spain has close to 1 million newly built properties on the market, and almost 50% of them are holiday homes on the coast.
With Spain's holiday home sector is going through one of the worst periods ever thanks largely to a collapse in both domestic and foreign demand, coastal areas such as Andalucia and Murcia have gone from the leaders in the holiday home boom to the leader of the growing glut of unsold new homes. Domestic demand of property has been flattened due to the rising unemployment and Spain's deteriorating reputation as a place to invest in property has squashed the foreign demand.
Even the lures of big discounts by promoters and Spanish Banks offering repossessed properties have not been able to stimulate sales of holiday homes.
Not even an "open market" for second homes has delivered results, despite discounts of 20% to 30%. According to sources, sales were down by 85 per cent compared to the same "open market" of 2008.It is important to remember, that the holiday home sector was mainly made up of apartment blocks situated all along the coast, offering the same product to the many buyers. Many of these urbanizations are in close proximity to other similar property blocks, and with the current economic situation, supply has out weighed demand.
For the discerning few, the Costa del Sol remains unique to Spain, offering one of a kind property that can be bought at a good price and modernised to suit your individual needs. The only catch for potential buyers is knowing where to look, understanding local procedures and finding the right professional to help achieve the desired result.
Spanish Holiday Homes Struggling