The Costa del Sol is one of the most popular tourist destinations in Spain. It is also a major hub for the country’s real estate market. The current financial crisis has started speculation about bank repossessions and bargain properties offered for sale. 2021 sat sales record in many ways in areas like Marbella, Benahavis, Malaga, and other areas of Costa del Sol. By that, a lot of properties were sold and even properties tagged Bargain, Bank Repossession, or distressed were sold very fast.
Now with the war in Ukraine, raise in electricity costs, gas prices, and general high inflation some people need to look at their asset portefolio. This has led to speculation that the Spanish real estate market may be starting to see a slowdown.
Bank Repossessions in Spain
There are several reasons why banks may repossess properties in Spain. The most common reason is that the owners have fallen behind on their mortgage payments. This can happen for a variety of reasons, including job loss, illness, or simply because the owner has overextended themselves financially. When this happens, the bank will usually try to work with the owner to come up with a payment plan. If the owner is unable to make the payments, then the bank will repossess the property.
Another reason why banks may repossess properties is that the property has been damaged and is no longer habitable. This can happen due to a natural disaster, such as a fire or flood. If the damage is severe enough, then the bank may decide that it is not worth repairing the property and will instead opt to repossess it. This is normally not the case in Costa del Sol.
Bank repossessions can be a good opportunity for buyers to get a bargain on a property. However, it is important to remember that these properties are being sold as-is. This means that the buyer will likely have to put some money into repairing the property before they can move in. In some cases, the bank may offer financing to the buyer, but this is not always the case. It is important to do your research before you buy a bank-repossessed property to make sure that you are getting a good deal.
Bargain Properties on the Costa del Sol
Another sign that the Spanish real estate market may be starting to see a slowdown is the increasing number of bargain properties being offered for sale on the Costa del Sol. These properties are usually sold at a significant discount from their original asking price. This is because the owners are motivated to sell and are willing to accept less money to do so. Bargain properties can be a great opportunity for buyers who are looking for a good deal on a property in Spain.
Outlook for the rest of 2022
The Spanish real estate market has been through some tough times in recent years even though 2021 and until now 2022 have been overwhelming in sales. However, one of the biggest property portals Idealista recently predicted a fall in house prices in Spain. Idealista covers all of Spain and therefore this also includes rural areas where the demand is normally not as high as on Costa del Sol.
Costa del Sol will remain a market in demand due to its microclimate, good infrastructure and golf courses. New developments will continue to be launched and some will get delayed but the activity on Costa del Sol is not expected to decrease anytime soon.
If you are thinking of buying a property in Costa del Sol this year, then now is a great time to do so. Prices are still relatively fair and there are some great bargains to be had.