Spanish property developers need to “adjust their prices”

November 07, 2007

An article at the Eroski consumer website reports that the holiday home market on the Spanish coast is feeling the pinch, and that developers operating in the sector may have to adjust their prices if they want sell their properties.

Luis Eugenia Martin – from the property consultancy Roan – is quoted as saying that developers will have to make “a real effort and adjust prices” of holiday homes on the coast to sell their stock of new properties. Although he expects prices for primary residencies to stabilise, a small price reduction may await the holiday home market.

In the coming months “prices for holiday homes on the coast will stabilise or even fall slightly,” says Martin, though he expects primary homes in urban areas to continue rising by 4% to 5%.

Martin advises investors to “wait 6 to 8 months”, as the “increase in supply might mean that developers and owners make a bigger effort to reduce prices, which investors can take advantage of.”

First home buyers, on the other hand, are advised to buy now because “first home prices are not going to fall substantially under any circumstances.”

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