Spanish Property Market Remains ‘Ultra Price Sensitive’

The Spanish property market has started to whirr back into motion, but it remains highly price sensitive. Only if the price is right will the property sell.

Chris Mercer, director of the southern Spanish real estate company, Mercers, comments: “I can cite a recent example to emphasise the point.  We had a resale townhouse at La Noria, in the ancient Moorish town of Vejer de la Frontera, which was priced at €180,000 but after consulting with Mercers the vendor reduced the property to €150,000.  Mercers conducted an open day on an October Saturday and, of the five Spanish couples who attended, one put down €1,000 in cash and has since paid a full €3,000 deposit. We could have sold this three bedroom property to three of the potential buyers, without any doubt.”

Chris continues: “This scenario prompted us into having a conversation with La Noria’s developer to see if we could negotiate price discounts on the remaining units of the final phase as clearly, although there are buyers out there, they’re ultra price sensitive. Although he couldn’t quite match €150,000, mainly due to the fact that final phase homes are larger and have individual garaging, we’re now in a position to offer three bedroom townhouses with access to a communal swimming pool for €165,000.  This is incredible as their initial sales price in 2007 was €285,000 – a discount of 42 per cent. With an e-campaign to our database and another open day we are confident we can sell plenty more.”

Incredible vistas

Squeezed between the sierras and the sea on a hilltop some 200 metres above sea-level, Vejer de la Frontera mixes labyrinthine whitewashed streets with incredible vistas of the surrounding natural park and sweeping sandy coastline. Vejer is within easy access of Gibraltar (only 45 minutes), Europe’s oldest city Cádiz (20 minutes), Jerez International Airport (35 minutes) and within ten minutes of the famous, near-deserted beaches of the Costa de la Luz.

La Noria, Vejer de la Frontera, Spain

La Noria is situated on the Atlantic side of Vejer with many of the properties having distant views of the African continent. Very strict planning rules are enforced to ensure that all new properties blend seamlessly into the old town.

On the market in La Noria:

Three-bedroom townhouse (VEJ007)

Brand new Andalucian style mid-terrace townhouse extending over 105m² with security blinds and underground parking. The home has three bedrooms, the master with a Juliette balcony, two bathrooms and a fully equipped kitchen. Outdoor space includes both front and rear patios as well as a private rooftop solarium with far-reaching countryside views. The property accesses a communal swimming pool while Montenmedio Golf and Country Club with its excellent golfing and equestrian facilities is within a ten minute drive.

Price €155,000 discounted from €230,000 – a 33 per cent reduction.

Three-bedroom townhouse (VEJ012)

Remaining brand new units on the most recent phase of La Noria which is at the highest point of the development and offers the best views and orientation. Extending over 122m² these three-bedroom, two-bathroom homes benefit from private garaging as well as the typical La Noria distribution of front and rear patios and a private rooftop space ideal for soaking up the sun and the countryside views. The communal swimming pool is within a short walk as is the bustling town centre with its bars, restaurants and retail facilities.

Price €165,000 discounted from €285,000 in 2007 – a 42 per cent reduction.

Contact Mercers Costa de la Luz on 00 34 956 329 572, UK Local Rate 0845 017 7805 or visit www.spanishproperty.co.uk

© Stewart Andersen and Stewart Andersen’s Property Blog, 2009. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Stewart Andersen and Stewart Andersen’s Property Blog with appropriate and specific direction to the original content.