Leading estate agency Connells and CAM Mediterranean, the property arm of Spanish bank CAM, discuss the state of the Spanish housing market and why they are putting even further discounts on a selection of properties in their ‘Exceptional Spring Offer’ campaign

The ups and downs of the Spanish property market have been a common theme in media reporting on overseas property over the last few years. Most recently, we have heard about the vast swathes of homes across Spain which are now owned by banks. Indeed, many of Spain’s financial institutions have literally thousands of repossessed properties on their books making them, to coin a phrase used in a recent article, ‘the country’s biggest estate agents’. But what does this mean for overseas buyers who are looking to purchase a place in the sun, especially from the UK where traditionally there has been huge demand?

There is much speculation on the state of Spain’s housing market, its recovery after the downturn and the shape of future recovery. Clearly, growth in this property market is still in progress, as it is in most other countries at the present time. But the focus on market recovery often overshadows the immense opportunity for buyers in the Spanish market. There are currently thousands of fantastic repossessed and bank-owned houses and apartments on the market in Spain which are going for a fraction of their original value because banks are keen to sell and get these properties off their books.

The desire from banks to sell on their new-build and second-hand repossessed properties is very strong. Clearly these organisations are not estate agents and have no inclination to hold on to the properties which is great news for UK buyers. Indeed, many are putting the homes on the market at unthinkably low prices. In the UK, Connells and CAM Bank are about to launch a selection of new build, key ready Spanish homes as part of their ‘Exceptional Spring Offer’ campaign. Within this offer, UK buyers will be able to pick up a Spanish home for as little as €60,000 with discounts of up to 27 per cent on top of CAM’s already discounted prices.

Exceptional Spring Offer
Connells and CAM’s ‘Exceptional Spring Offer’ will run for three months and prices will be exclusive to buyers coming through Connells. The properties included in the offer are located in the popular south-east coastal area of Spain and will cater to most wants and requirements. So whether you are looking for a luxury apartment on a golf resort, a home by the beach or an inland villa, buyers will have the opportunity for a limited time to pick up a property at unbelievably low prices.

The ‘Exceptional Spring Offer’ has five developments available including ‘Las Kalendas’ in Fortuna, Murcia, ‘El Palmeral’ in Torreblanca, Castellon, ‘Playa Golf’ in Orihuela Costa, Alicante, ‘Senorio de Roda’ in Roda, Murcia and ‘Lomas de Mar IV’ in Vera, Almeria. These developments offer a number of stunning properties whether you are looking for a holiday home or a permanent residence in Spain. And with discounts of as much 57 per cent off the original valuation of the property at the time of repossession, it is little wonder that many pundits are saying there has never been a better time for British buyers to bag a bargain home in Spain.

Bank benefits
There are also a number of key benefits to buying through a large and reputable Spanish bank and CAM is the only one to have an establish property arm, CAM Mediterranean, which is the number one seller of repossessed properties in Spain. We’ve all heard the horror stories about illegal builds and land grab, but these issues are overcome when buyers decide to make a purchase through a large national bank.

As already mentioned, banks have many thousands of properties on their books which they are keen to sell quickly, so no benefit would be gained by selling a property where problems could arise. If this were to happen, it has the potential to tarnish the bank’s reputation and jeopardise the future success of selling their remaining properties, especially to UK buyers. With this in mind, the realisation that buyers are dealing directly with a large and well-regulated institution, should offer peace of mind.

Additionally, any doubts about the security of buyers’ investment are overcome since the bank will have done due diligence before taking on the property. Buyers can also be assured that they are dealing directly with the owner of the property, that CAM can provide the names of reputable utilities and furniture companies if buyers are not familiar with local suppliers and that they have the infrastructure in place to spend time showing UK buyers the local area whilst they are looking for property.

Because banks like CAM are keen to sell, they are also offering buyers some fantastic finance options. For example, all of the homes available in the ‘Exceptional Spring Offer’ campaign will have access to CAM’s up to 90 per cent loan to value mortgage which is available to buyers on properties up to €180,000, of which 92 per cent of the properties being marketed by Connells in the UK are, and has a repayment term of up to 40 years.

Opening up the market
Connells and CAM believe there will be significant interest in their ‘Exceptional Spring Offer’ over the next three months. Not only this but the low prices available within the campaign will open up the market to a wider pool of buyers, and those who have been thinking of buying but have had reservations about whether it is the right time.

Demand for Spanish property is still there and we should not confuse speculation on the state of the housing market and wider economy with the desire to buy a fantastic home in the sun, whether it’s just for holidays and to escape Britain’s gloomy climate, or to start a new life in the Mediterranean. Connells has experienced growing demand for the Spanish homes it has made available to the UK market through CAM in 2011. The ‘Exceptional Spring Offer’ is set to generate even more interest but buyers will have to act fast as the low prices on offer will only be available until June this year.