Why should I bid on a Spanish estate?
It may seem a long shot, but buying a Spanish home is one of the most financially rewarding activities you can undertake.
In fact, according to a new study, the number of people bidding on Spanish homes has risen by an average of 24% per year over the past five years.
This has led to a massive increase in the number and size of estates being auctioned across Spain.
The study, conducted by a Madrid-based research firm, shows that the average sale price in Spain has increased by an estimated €40m (£28m) in the past three years alone.
“It’s a real buzz in Spain right now,” says Eva Hidalgo, head of the real estate consultancy, Estadual de Reales.
“We’re seeing a huge increase in bidding and an increase in interest.
It’s a very high-quality product.”
With the demand rising, a new auction house, La Estadio, is coming online to serve the Spanish market.
It will allow buyers and sellers to make informed bids on properties at different stages of the sale.
“We’ve been working on this for several years, and it’s a really big step forward,” says Daniela Torres, chief executive of La Estadalópolis.
“It’s not just about the price but about the quality of the product.”
For example, the latest estate appraisal from the Estadios de Madrid, one of Spain’s biggest real estate firms, showed that a house worth €300,000 was worth €30,000 in 2010.
But in 2016, it had risen to €300.3m.
This new bidding platform has been designed to enable the buyer to make an informed bid.
The seller and buyer can talk about how they would like the property to look and how much it is worth, and La Estadiano has a process in place to track the bids.
“This is a very different process to what we’ve been doing in the last five years,” says Hidalgos.
But it’s up to the seller.””
If we’ve got a question we can answer it or we can suggest something.
But it’s up to the seller.”
In a bid for a house with a current price of €400,000, for example, it would take five minutes for the seller to submit their bid.
“The seller has to have a lot of experience in the area, and they’ve got to have lots of contacts, lots of experience selling in the neighbourhood,” says Torres.
“In other words, they have to be able to sell a house at a reasonable price.”
The new platform is the result of a collaboration between Estadiolos de Madrid and Estadietro, a real estate agency in Madrid.
Estadieres de Madrid have a long history in Spain, having opened in 1997.
“In the last 10 years we’ve seen a huge change in the way in which real estate agents operate, and in particular how much they value their customers,” says Antonio Torres, Estadianos de Galicia, head and chief executive.
“And it has been very difficult for us to keep up with the demand for real estate in Spain.”
The Estadianos de Reale, which has offices in Barcelona and Madrid, are now looking to expand in other parts of Spain.
“Real estate agents are not just interested in the sale price,” Torres says.
“They’re interested in helping their customers in a number of different ways, from finding suitable houses, finding suitable apartments, finding a suitable buyer.”
He says that in 2016 a quarter of all the real-estate agents in Spain were working for other agencies, and that there is a huge demand for Spanish-speaking agents.
“The real estate agent who speaks Spanish is a really valuable asset for a lot more people,” Torres adds.
“For example if a customer wants to know about a property, they can ask for a Spanish agent to speak to them.
And then they can speak to a real-life agent in Spain.
That’s how we can help our customers.”
Buying a Spanish property is one way to get a foothold in the Spanish real estate market.
But the realisation that the country is being flooded by overseas buyers has made the process more complicated for Spanish realtors.
“Our clients don’t want to go through this process again,” says José Gaviria, president of Estadiencia de Reala.
“Because they have so much more to offer.”
The number of foreign buyers has risen steadily in the first five years of the millennium, with more than 100,000 new properties sold.
According to a study by Estadientes de Madrid published last month, the average price of a Spanish house went up by €10,000 per person, or almost €100,000 for a family of four.
However, many Spaniards who are used to the “hotel