Resicom – Holiday Investment – 04-21 – LB

Spanish ‘Unsellable’ Properties Selling

The Spanish property market is finally shedding the last impacts of the recession, with the number of ‘unsellable properties’ rapidly declining.

Overseas property investors are turning to Spain once again, following years of stagnant demand. ‘Unsellable properties’, which are properties built during the pre-recession boom years, are finally beginning to shift. The homes had previously proven difficult to sell due to their location and style and the lingering effect of the recession. However, there has been a sizeable fall in their number from a peak of 650,000 in 2009 to a mere 300,000. In 2016 alone this figure fell by 20 per cent, a trend which is expected to be repeated this year.

Certain areas have performed particularly well in this respect. The Costas is an example of a location now devoid of the ‘unsellable homes’ which once seemed a permanent fixture in the area.

Sales in general are picking up in the Spanish property market, with the news that the number of homes sold in 2016 has risen 25 per cent to approximately 445,000. This figure is expected to top the half million mark in the coming year.

This improvement is not limited to the residential market, with total investment in Spanish hotels reaching €2.15 billion in 2016, the second highest year of in the last decade after 2015. Four and five star hotels have been particularly of interest to international companies investing in the Spanish hotel market. These companies are looking to increase their portfolios having seen the recovery in the Spanish property and tourist market.

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