Although it is one of the popular places to buy property on the coast, with the Spanish as well as other Europeans Javea has still been affected by the downturn in the Spanish property market.
Is this a bad thing? It’s great for purchasers – In the last year or so there has been on average a 30% drop in property prices, if such a drop happened in Dorset or Cornwall there would be a flood of investors taking advantage of this slump in the market.
How long can the dip go on? There are varying reports in the press about the growth of the Spanish economy, there seems to be a lot of speculation and like all countries at this time, who do you trust, is the doom and gloom believable? Does the Spanish government fudge the books to make growth look better? Who really knows, all I can say is that tourism this year to the area was extremely high, local residents on the ground were commenting on how it’s the busiest they’ve seen it for years. Is this just wishful thinking or were there many more tourists here? If my occasional visits to the Arenal in Javea are anything to go by, it was crazy in August.
Overall is a 30% drop in house prices something to be sniffed at? Can the fall continue? Here are some examples of house price falls over the last 2 years –
Traditional Finca on the Montgo, one of the most popular areas of Javea 695,000 to 475,000.
18th Century Finca from 950,000 to 595,000 – A massive 37% fall
New build apartments in the Arenal, beach area of Javea 253,000 to 170,000
These properties are just a small selection from www.javea-property.com but you will find most properties prices have fallen by over 30% and remember these prices are the asking price so there is probably still some opportunity for offering a lesser figure.
So the question is – Has the property price dropped to it’s lowest it will go? This autumn I think will be the telling point, usually the most popular time for house buyers is October and November, for investors this gives them time to renovate for the start of the letting season and for those wanting to relocate a much cooler time to arrange moving.
I believe we will see a rise in the German, Dutch and Scandinavian purchasers, their economies do not seem to have suffered so much in recent times and are snapping up the bargains. The UK buyers are slower to jump on this price drop, whether this is because of the very few horror stories the British press report on or they are worried about the economy and there investments at home, it’s hard to say, but I think the time is coming where the market again will be buoyant, only a few years ago there were several buyers per house and if you viewed a property you liked you needed to have the deposit in your hand to be able to guarantee you that property.
If you are looking to relocate or buy a holiday home I would say the next year is the time to do it. Get in at the bottom of the market!