Taylor Wimpey España CEO, Javier Ballester, talks about the current state of the Spanish property market

Taylor Wimpey España CEO, Javier Ballester

Keen to hear an independent opinion about the current state of the Spanish property market from a successful developer, we thought who better to ask than Taylor Wimpey España CEO, Javier Ballester? One of the very few companies still actively developing new real estate projects during the current economic crisis, remarkably Taylor Wimpey España have already sold – and off-plan to boot – the first three phases of their Los Arqueros Beach development in Nueva Alcántara (San Pedro), while Friday 28 June sees the release of the second phase of La Floresta Sur (Elviria Alta)…

But it’s not only on the Costa del Sol that Taylor Wimpey España are enjoying phenomenal success, it’s a similar story for them in Mallorca and Alicante, too.

VIVA’s exclusive interview with Javier Ballester:

It seems that the market for holiday homes in Spain has improved, with a considerable number of properties being purchased by foreign buyers. What do you think are the principal reasons for that?

Spain has been a traditional market for European buyers. For many years Northern Europeans have aspired to own a second home in Southern Europe. And after the initial shock of the property bubble bursting in the United States and in various European countries, Northern Europeans have come to realise that it’s a very good time, price-wise, to purchase a property in Spain. Current buyers are not investors… investors have disappeared. Nowadays people are lifestyle purchasers. They want to have a home in Spain, it’s a country they know and like, and those who can buy are doing just that. After all, why wait? Prices aren’t going to get any lower (except in the case of unsellable product, but certainly not in the case of good properties).

Taylor Wimpey España is one of only a few property developers who are actively developing new real estate projects and selling off-plan on the Costa del Sol. What is the secret of your success at a difficult time such as this?

We don’t only sell on the Costa del Sol, but also in Mallorca and Alicante and we are experiencing the same success in all three places. We were the first property developers to react when back in 2007 we began to lower our prices and concentrate on selling our existing housing stock. We learnt that a good product in a good location and correctly priced sells. What we are building now has a far superior level of quality than the properties that the banks have on their books, which are old, badly constructed, badly maintained, and are on complexes where the communities of owners have many problems.

Los Arqueros Beach, San Pedro, where the first 3 phases have already been sold off-plan

The product that we are selling now is infinitely better than it was six years ago, with improved and ultramodern specifications, new-generation insulation, and it’s of a design that six years ago would have been too expensive for us to be able to sell.

I would like to add that while we have adjusted the structure and costs to the current marketplace, there are three areas in which we have not made any economies: Sales & Marketing, Construction Site Safety Regulations and Customer Service.

In the last few years we have also purchased building land in fantastic locations and at costs that allow us to sell at current market prices.

How do you think the holiday home market in Spain will evolve?

Well, I don’t think it will be easy, but I do undoubtedly believe that the most difficult times are over. Not many professional developers will remain. And as is the case in virtually every field, the client will be King, we’re very clear about that. We measure client satisfaction on a monthly basis and understand that nothing will be as it was before. The days of selling anything, irrespective of the price, are over. The client is better informed and more knowledgeable about the market all the time, which means you either create a good product in a good location and at the right price… or you just forget it.

What advice would you give to property developers who may be thinking of developing holiday home projects on the Coast?

Listen to the client and try to create a good product. Forget about how the market used to be… rethink pricing, product and service… and reinvent yourself.