Sales of property to foreigners are down by 99 percent since 2005
Residential tourism came to an almost complete standstill on the Costa del Sol in 2009.
The sale of second homes hit its peak in 2005 when some 12,400 homes were sold on the Costa worth 2.3 billion, but last year that was down to almost cero given the recession and the weakness of the pound against the Euro.
The Málaga Association of Constructors and Promoters, ACP, says last year there were only some 100 sales, 99% down on four years ago. President of the ACP, José Prado, told La Opinión de Málaga that there are no British buyers now because of the weakness of the pound and that the only hope is Germany which looks like recovering this year. He also notes that the PGOU urban plans of many municipalities remain on hold and that Spain is not offering judicial security to the real estate investor, and that events such as that seen in Carratraca where nobody wants to be Mayor because of house demolitions, does not send a good message.
The lack of demand for second homes has sent current prices on some properties plummeting by 90,000 €. The OMAU Urban Environment Observatory say prices on such property in the province has fallen by nearly 27% between the end of 2007 and the end of last year.
Source : www.typicallyspanish.com
