Welcome to the August 2024 Property Market Update for the south of Granada. Here are the latest market insights, facts, and figures affecting homeowners in the Lanjaron, Orgiva, Lecrin Valley, and Velez De Benaudalla regions.
Lecrin Valley Market Insights
Starting with Lecrin Valley, there were 214 properties available for sale in July, with an average asking price of €170,000 or €1,054 per square meter. Angela, from our Lacroome Valley office, shared that the market has shifted away from smaller renovation projects to houses that are ready to move into with minimal work required. Interestingly, there has been an influx of enquiries from America, likely due to the instability in their market and the recent introduction of direct flights from the East Coast to Malaga.
Angela noted that while activity levels remain steady throughout the year, there are peaks and troughs. Currently, many Northern Europeans are on holiday, which is a prime time for them to view and purchase properties. Sellers might consider waiting until autumn to list their properties for more engagement, but now is a key time as well, with many potential buyers in the area.
Market Trends and Scams in Lecrin Valley
Angela also highlighted a worrying trend of scams, particularly in Lecrin Valley, where properties are being falsely advertised on social media. These scams often involve cloning agent websites and Facebook pages to deceive potential buyers. She emphasized the importance of verifying agent contact details and reaching out directly to avoid these scams. This issue has also been prevalent on platforms like Idealista and a recent case in Motril where the perpetrator was arrested!
Orgiva Market Update
Moving on to Orgiva, there were 201 properties available last month, with an average asking price of €200,000 or €1,192 per square meter. Borja, who specializes in the Orgiva area, reported that the market remains active, with many properties selling quickly if they are well-priced and of good quality. However, some older properties remain on the market at high prices, giving the impression of a stagnant market. Borja stressed the importance of realistic pricing to ensure quick sales.
Importance of Proper Documentation
Borja also addressed the importance of having both the escritura (deed) and an updated nota simple (property registry extract) when listing a property. Without proper documentation, sellers can face delays or even lose potential buyers. This is especially critical in cases where the property belongs to a deceased person or has a fake escritura. Ensuring all paperwork is in order is crucial for a smooth transaction.
Lanjaron Market Insights
In Lanjaron, there were 134 properties available last month, with an average asking price of €112,950 or €866 per square meter. Amy reported that the market is still active, although there are fewer properties available, leading to increased competition. However, overpriced properties remain a problem, skewing market figures and deterring buyers.
Changes in Planning Regulations and AFOs
Amy provided an update on changes in planning regulations and AFOs (Asimilado Fuera de Ordenación), which have significantly impacted the market. Since the major overhaul in 2021, architects, lawyers, and governing bodies are finally understanding how to apply the new regulations. These changes are particularly relevant for properties in rural locations near water sources, where additional paperwork is now required.
The Water Confederation of Andalusia mandates that any property within 100 meters of a water source must submit extra paperwork, which can delay the AFO process by up to six months. This has led to a greater emphasis on obtaining AFOs before selling a property, as lenders now require these certificates for mortgages and loans on rural properties.
The Importance of AFOs for Sellers
For sellers, it is advisable to start the AFO process two years in advance to ensure compliance with regulations and avoid delays. This might involve making modifications to the property, such as installing a septic tank or altering ceiling heights to meet residential requirements. Lawyers are increasingly advising clients not to purchase properties without an AFO, which impacts property values and marketability.
Conclusion
In conclusion, the property market in the south of Granada is experiencing a period of correction. While the market is not falling, buying power has decreased slightly, leading to more selective buyers. It is crucial for sellers to be competitive and realistic in their pricing and to ensure exceptional marketing for their properties.
If you are considering selling your property or have any questions about the current market or the AFO process, please do not hesitate to get in touch with us. Our team is here to help and provide the guidance you need to navigate these changes effectively.
If you have any further questions or topics you’d like us to cover, please leave a comment below. We’ll be happy to address them in future updates.
