In the world, there are indications that the worst is over as regards the domestic real estate market, as the banks open the money taps again. The Association of the Balearic Real Estate Agents has reported that currently an apartment can be purchased for less than €150,000 as compared to €200,000 in 2007. This can be described as a very tempting piece of information indeed. If you are one of those people toying with the idea to buy or rent a house, this is the most favorable time to do it.
There are some people who are ever skeptical and such will like to think that the Association has made this announcement because that is what they always say. However, there are growing signs that show real estate prices and demand are gradually beginning to rise. On the other hand, the usually higher-priced foreign property market has proved itself to be crisis-proof in any case. This means that there could actually be something to this.
The figures are indeed positive
The figures which the Spanish Statistics Institute INE presented a few weeks ago are a sign for this thesis. For instance, in March, 2014, over 1,000 apartments were sold in the Balearics; with 386 of these being newly built ones while 681 of these being re-sales.
Compared to 2013, this is an increase of 70%!
Real estate remains as popular as they have always been! An upward s trend is now truly noticeable in the real estate market. This is a vital factor as the locals have more money again. However, to-date, it is only in the Balearics region, since in other parts of mainland Spain the real estate business is still suffering.
But on the other hand the economic state on the islands is much better than on the mainland anyway. This has come about as a result of the tourism industry facing a high season. There is an ongoing positive development in the labor market. This is directly visible in people’s purses. People are becoming more solvent enough again such that they can think to buy or rent a house. The banks are also slowly becoming more cooperative and are giving credits again, which is good. It is important for them to play along in order to inject activity into the domestic real estate market.
It was practically impossible till 2013 to get a credit for the purchase of a property in the world. However, things have since changed. Beginning from the first quarter of 2014, mortgages are being granted once again. But the conditions are not the same as they were about ten years back, which tended to be actually almost unreasonable. Bank credits also depend on the island region as well as property market’s activity there. For example, Palma and Pollensa are more popular locations than the town Manacor.
There are good property bargains presently. There are still several property owners in world who due to financial difficulties have to sell. They have reduced the price of their property significantly hoping to find a buyer for their apartment or villa. Apart from that, there are other favorable conditions, particularly bargain apartments