Confidence is gradually returning to the Spanish property market as holiday home buyers take advantage of the market. The feeling is that it's finally bottomed out and developers are beginning to start new projects. In some parts of Spain prices have dropped by 50% and are back to the level they were 10 years ago, and the many believe they cannot drop any further.
Buyers are finding great bargains as some are sold fully furnished and ready to let, and as they are in well-established areas they are easier to mortgage. There is also likely to be greater demand for holiday rentals this year due to the troubles in Egypt; low cost airline Jet2.com has just announced it is replacing its suspended Egypt programme with extra flights to Spain and Portugal.
The opening of the new international airport at Murcia City is certainly expected to improve the property market in Costa Blanca and two property developers have already announced new plans for residential projects. Some local estate agents are wondering if they are being a bit too optimistic as they are seeing little demand for of plan property. Much of the interest in this area is being generated by the new Paramount theme park but building work has yet to begin on this attraction.
In order for confidence to fully return to the property market and for the Spanish economy to improve, unemployment levels need to fall and the Organisation for Economic Co-operation and Development has said reducing unemployment is the key to recovery. Unemployment levels vary widely across Spain but are being exacerbated by the property market, although the Paramount theme park is expected to generate much needed jobs.