Selling a flat in Spain takes on average 4 months, one month longer than two years ago
According to information from DonPiso, a national chain of estate agents, the average time it takes to sell a flat has increased by 40% over the last two years from 86 days in 2005 to 120 days in 2007.
The report claims that the increase in the time it takes to sell a flat in the Spanish property market is a logical part in the normalization process (as opposed to crisis) currently being experienced by the real estate sector in Spain. It also points to the continuing increase in interest rates and uncertainty over future rate rises as a factor in the slight drop in demand for property. The report claims that property owners think that their properties are worth more than their real market value and tend to overprice them which also makes buyers more cautious.
Other factors which have affected demand for property is that more people are investing in the stock market rather than property.
The report expects property prices to increase at a slower rate in 2007. It forecasts an increase in prices of between 5% and 7% this year both for new properties and ‘second hand’ properties.
However, despite the present slowdown in the property market in Spain demand for properties remains steady and the report predicts that Spaniards preference to buy rather than rent together with the growing number of immigrant house-buyers will help to keep the real estate market in Spain buoyant for the foreseeable future