Apartments on the Costa del Sol will keep going down in value

Apartments on the Costa del Sol will keep going down in value

Although the recovery of the market on the Costa del Sol is provided by foreign demand and at the same time foreign investors almost always pay without getting mortgage, real estate prices will continue to fall, writes ee24.com citing aguirrenewman.es. Demand grows slowly while the supply is almost the same high. 

9 out of 10 foreign buyers do not take mortgage, while 75% of Spaniards go to bank when buying houses, and 85% - when buying apartments on the Costa del Sol. Typical purchase in this season is a house or a villa with three bedrooms with an area of 279 sq.m or a two bedroom apartment with an area of 127 sq.m. In the first case, the price is €393.5 thousand, in the second - €197 thousand, and prices are respectively by 9.7% and 5.7% less than in 2013. 

For the near future, experts predict a slight increase in sales related to the improvement of the economic situation and facilitation of access to finances. On the other hand, the accumulated volume of unsold homes will not give any reason for the growth of prices at least until the end of 2014.