Having enjoyed continued growth over 2014 and a particularly strong year ending, Holmes Sotogrande looks forward to 2015.
What can one say, with all the indicators up it’s hard not to be optimistic, yet Ben Bateman and the team at Holmes Sotogrande add a measure of caution to an otherwise positive outlook for 2015.
“2014 ended on a high note and the new year has started in the same fashion, strongly up on this time last year,” says company director Ben Bateman. “Last year sales transactions were up 30% on the previous year, though the average price per sale was down slightly due to a different product mix with more townhouses in it, and for this year we expect an even stronger increase in sales.”
He bases this prognosis on the strengthening of the real estate market across the Sotogrande area, where demand is particularly gathering momentum in the upper segment though visible throughout all the price categories. “The demand for Sotogrande’s lifestyle and properties has been growing for the past two years, but the news that a large American investment fund bought Sotogrande S.L. has brought further stability and confidence into the market.”
Sales times are shortening and asking and vending prices are coming closer together, indicating a more balanced relationship between buyer and vendor than a few years ago. “People know not to offer silly prices,” says Ben, “but equally we warn homeowners against thinking that it has turned into a sellers’ market, which is not the case.” In other words, demand is strong as long as vendors are reasonable with their asking prices and likewise homeowners will sell if the offer is also within market levels.
“We no longer have real ‘distressed properties’, so property values have evened out and are quite easy to assess right now. If things continue as they are we expect property prices in this area to slowly nudge upwards, but particularly among those properties that offer the best amenities, style, comforts and location.” In this Ben also refers to new consumer trends in which today’s homebuyers tend to demand higher technical and comfort levels, as well as modern styles. “Construction has slowly begun again, although for now it is still largely focused upon individual villas or small developments of luxury homes.”
Very much in demand right now are stylish, well-facilitated villas of four bedrooms and more, as well as luxury three-bedroom apartments, and in both categories supply is shortening. “As a result, square metre prices have risen from €2,000-€2,500 back towards the €3,000 mark,” says Ben, who also notes the gradual return of financing and predicts the revival of the Spanish market in the coming years.
Where in the past few years the source of buyers was highly diversified, it is expected that 2015 will bring a strong increase in British buyers heartened by a favourable pound to euro conversion. “People who buy in pounds, dollars or Swiss francs will see their buying power significantly increased, and we’re already feeling the effects of this.”
The market is in a rare sweet spot, poised between attractive prices and improving market conditions. “This really is a once in a generation moment, so both investors and homebuyers should make the most of a unique opportunity.”
By Jackie Cruz - Manifesto ·