hi, i'm looking to set up a business in the region, i just wondered what the property market is like in the area, is it similar to many other places at the moment, many houses for sale, trouble selling?
any info would be great
It is still very much a buyer's market. There are many out there who have the money to buy but are willing to wait for a bargain or the perfect property.
Things seem to be picking up slowly but it is still tough. If that is the business you are thinking of setting up, then unless you can bring something to the market that the others don't have or you can do it better than the established companies (who can wait out the bad times) than steer clear of setting up a property business.
To be honest the housing, in particular the resale market is ripe for a kick up the rear and a bit of innovation. Agents charge ridiculously high add-ons for their extremely average services and a model - similar to London's 1% agents (or 1/2 Percent) would certainly attract a lot of client interest but that's not to say you'd actually sell anything as the market (including the rental market) is extremely depressed.
Most new properties are sold by the developer so they have leeway on costs but the resale market is the more lucrative and accessible market.
In 2005/06 in a small place like Puerto Mazarron there were over 100 estate agents now you could probably count them on both hands. People maybe waiting for a bargain but a friend of mine has reduced a very nice house in a very sort after area from €485K down to €300K and they still cant sell it with 2 agents here, 1 Spanish 1 English. Small businesses arent cheap, do you have any idea how much it costs to open a small shop/agency? the amount of paperwork & hassle it involves? and the cost to set up as self employed and ongoing costs of the same? Until you live here you have no idea what Spain is like!
Spain doesnt make it easy for any type of small business but until the pound & euro are in better shape I think you would just be throwing money away.
Sorry but been there got the T shirt.
I wasn't sure if you were addressing your "points" toward me - but i thought out of courtesy i would respond accordingly:
I know exactly how much it costs to open a small business and precisely how to run one efficiently and economically - I've seen many people open business' here and fail mostly simply because their business plan or lack of one was flawed with invalid research or was based on wishful or no market research.
I've lived and worked and been employed in Spain for many years over the last 10 years. I've worked and lived here in mazarron and in Bilbao and Barcelona. I am fully aware of the accounting methods and practices of business' and the cultural and societal effects on work.
Business' can be a success here irrespective on the currency rate which has very little to do with running a profitable local operation - the main problem is too many people come here thinking they "worked in an estate agents in the uk" and can do it here or "i used to paint my own house" i can do it for a living or "i am a great dinner party host" i can open a restaurant. Quite simply, that is not the case!
And as for the paperwork if you've ever run a business in the UK - there is little difference.
I am happy to answer any questions you may have.
My reply was to Louise as she started the thread, you & I are just expressing our personal opinions on a public forum.
Over 90% of the agents in Puerto have closed down they all cant have just gone out there unprepared, without business plans or advisors.
hi many thanks for everybody's responses. i set up a small business in the south of france last year and am very aware of the problems of paper work and the cost of setting up a business-i managed to make it a success but only through a lot of hard work!
i wouldn't be setting up a new business, it is already an established business in other parts of spain. it would be setting up property auctions which would cut out the huge commissions that estate agents charge,