Recovery in the sale of new build property

According to Pedro Pérez, the general secretary of the G-14 (association of Spanish developers) the sale of newly built property has started a mild recovery, and this position will be consolidated in the coming months. Backing this up, the latest INE (Spain statistics institute) statistics showed an increase of 7.6% in inter-monthly sales, with over 20,000 sales in September.

This ‘positive’ thinking is back up by the last five months worth of statistics, which has shown a positive increase month on month from April 2009 when the market touched bottom.

It should be noted that although there are signs of improvement, the market is still 19.5% down year on year when 24,000 new properties were sold in September 2008.

According to the general secretary of the G-14 this improvement has been made possible due to the efforts being made by developers to reduce sales prices and by banks offering better mortgage deals and these reduced prices.

If this pattern continues over the coming months and important corner will be turned in the property market as the stock of new homes will start to decrease. I’m sure many developers will sigh with relief at this prospect.

Source: El Mundo

Andrew Belles

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