Following the construction boom of recent years Spain now has over 800,000 properties waiting to be sold with 16% of them in Andalucia, mostly in the provinces of Malaga and Almeria. This is an increase of 19,000 since the end of 2010.
Only 2,000 new homes have been sold in Andalucia in the last year according to new research from Spanish bank Catalunya Caixa and the report doesn’t see this number falling too quickly.
With many urbanisations currently under construction the number of new, unsold properties is likely to increase by around 18,000 this year, the report estimates.
The report also showed an increase in the number of state-subsidised houses in the region increasing from 7.1% of the total in 2007 to 34.4% in 2011.
Analysts think this is a contributing factor preventing the construction sector from improving over the last 12 months and it is unlikely to show significant improvement in 2012.
Another reason many of these properties sit unsold is the recent media coverage of corruption trials in which officials are accused of accepting bribes for granting planning permission and residency licences. Many potential property buyers are worried that they could find themselves in a similar situation to the unfortunate people who watched their homes demolished in front of them. Buying a resale property is far safer as the necessary licences are likely to be in place and any construction issues have usually been resolved.
Whether you’re buying a new property or a resale, ensure you use a lawyer and check everything before you sign anything!