Spanish Property Developer Converts to Fractions

Spanish developer Taylor Woodrow de Espana has converted 16 unsold properties on its Las Encinas de los Arqueros and Los Robles de los Arqueros projects in Andalucia into fractional units, after its research found that buyers in the country are looking for cheaper property.

The developer believes that with a drop in property prices across Spain, and a lack of buyer liquidity, the new model will help shift stock across the country.

“It is also a more eco-friendly option as properties are not left empty for long periods during the year,” said a spokesperson. “This is an innovative way for Taylor Woodrow to tackle the problem of oversupply in Spain positively.”

Taylor Woodrow said that when conducting research into the buying patterns of nearly 6,000 of its past and present clients, it found that, although demand to buy in Spain was still strong, budget constraints were one of the biggest factors holding back sales.

The percentage of people looking to buy in the €250,000 - €450,000 price range had dropped from 58.82% in 2007 to 38.02% in 2008, while the amount of investors looking at the €150,000 - €250,000 bracket jumped from 35.29% to 66.98%.

“During 2008, consumers were forced to look at their budgets and unsurprisingly the lower priced houses in our selection became more popular as house hunters looked to bag a bargain overseas,” said Victor Sague, marketing director of Taylor Woodrow de España. “We believe that whilst the credit crunch has dealt a heavy blow to house hunters, rather than delaying their home owning dreams in the sun they are merely reassessing their budgets and looking for cheaper alternatives.”

Owning a holiday home is still the primary reason for consumers looking to buy in Spain in 2008, according to the research, with 55% of enquirers citing this as their core motivation. However, those seeking a permanent move to Spain rose sharply as a percentage of enquirers, taking a 23% share in 2008 as opposed to 12% in 2007.

Two-bedroom homes dominated the market last year with 57% of all 2008 enquirers looking for homes of this size – a 7.5% rise y-o-y.

When looking at the types of properties preferred, apartments had a clear majority with 66% of enquirers looking for this option. Penthouses ranked second (18%) and semi-detached homes third (7%).

Breaking down the enquiries according to age groups, the highest rise was seen in the 30 - 45years’ category with 44% of enquiries in 2008, compared to 35% in 2007, according to Taylor Woodrow de Espana.

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