Costa Blanca Property Market: What to Expect in 2010

You will probably find many different figures plucked out of the air regarding property prices for the year 2010 on the internet, in news reports and newspaper articles. However, don't be put off by all of the scare mongering that the media seem to put in your head, most of it is solely personal opinion and a lot of it is just to put a downer on the Spanish market.

If you want a more open opinion and an opinion that deals with the issues day in day out then you are probably best off asking people that are dealing with in the industry everyday, such as an Estate Agent!

Yes, the past couple of years have been a bit shocking to be completely honest. If someone had told you in 2007 that the Spanish Property market would pretty much be on its knees a year or two later, we probably wouldn't have believed them. Spain has long been a haven for second home buyers and investors, simply due to the huge interest and demand for property in the country. But like every market, there will come a time where it comes full cycle and something drastic unfortunately happens … like what has happened here.

From personal experience (as we work and operate solely on the Costa Blanca), the Costa Blanca south area of Spain has been hit extremely hard over the past couple of years. Building of new developments has hit the wall, developers have downed tools, many have gone out of business and confidence in new builds has dropped due to all the bad publicity that they have received in the UK media especially. In a way it has been good news for all whom are involved with the resale market, which in the past 6 months have seen a slight increase in activity - giving the resale market a chance to recover. The resale market has seen massive drops in price, some properties being reduced by up to 25% in some cases, usually distressed properties that are in need of a quick sale due to personal financial difficulties.

Interest from potential buyers has also increased due to the very low prices (compared to two years ago), even with the decrease in mortgage approvals! Spain also showed a national increase in property sales for the first time in two years which shows that the market is finally moving in the right direction.

You will most definitely see the same line everywhere you read … "Now is the time to buy in Spain" which in my personal opinion is not far from the truth because there are so many bargains still available on the market, however many are not in the position where they have to sell and will sit it out until there is an increase in value of their Spanish property. Everyone is the same, you would want to get as much as you possibly could for your investment!

So, what to expect in 2010? With the REAL bargains slowly but surely selling up, I think this year will not see an increase in value of house prices but it will see a steady increase in sales especially here on the Costa Blanca.

So if you are still very serious about buying your dream home in the sun and you want to bag a bargain then starting your search today will be the best decision you have made, leaving it longer will only end in disappointment and what if?