15/09/2014 – Expansion
The real estate recession varies in each of Spanish regions. While in some areas thousands of homes cannot find a buyer and probably will not in the nearest future, in other, there is a supply shortage in some neighborhoods, mainly in big cities. In Madrid and Barcelona new housing developments sell at very much slashed prices and in the prime areas flats on sale disappear in a wink of an eye as the interested purchasers queue to buy a property.
A new block of flats situated on the Entença street in Barcelona and marketed by developer Corp has invoked such a desire among the investors that more than a hundred of people stood in a line in front of the firm‘s office. Within ten hours, 56 apartments priced at €320.000 each got a new owner.
In Madrid, another property manager Vía Celere has achieved selling over 70% of its Puerta del Retiro housing development‘s total of 212 flats. ‘In this area new property supply almost does not exist and that is why we witness such a great enthusiasm from the part of buyers who seek new and high quality homes‘, says head of Vía Célere, Juan Antonio Gómez-Pintado. These apartments‘ values oscillated between €228.768 (for a single-bedroom flat) and €609.000 (4 bedrooms).
Don Piso has also experienced the lack of new homes for sale. At the end of July, the realtor started to commercialize a new housing development in a high-end area of Barcelona and by now it has sold 80% of the dwellings. Don Piso‘s CEO Luis Perez explains that ‘the purchasers were giving their thanks to us for being able to buy such a property at such a price, something not seen ever before‘. An example-100-square meter home costs €540.000.
The owner of real estate firm La Llave de Oro and the chairman of Barcelona‘s Developers and Builders Association Lluís Marsa was warning at the end of 2012 about possible ‘run-out of stock in Barcelona‘. Considering the supply-demand mechanisms, a rise in prices and spread of the gap between large cities and the rest of Spain may be expected.
Original article: Expansión (by Marisa Anglés)
Translation: AURA REE