Taylor Wimpey, the largest housing developer from the UK, will restart the construction of housing in Spain, after a break of two years by the housing crisis. "We will re-launch the development on the Spanish coast we stopped in 2007 as a result of the new demand by British buyers that we expect this year," says Javier Ballester, CEO of the Spanish subsidiary of Taylor Wimpey.

The British group's plan is one of the positive sign of the recovery of the Spanish housing market. Taylor Wimpey makers rely on a sudden market recovery. Taylor Wimpey's strategy of lowering prices from the beginning of the housing crisis has allowed them to get rid of most of their homes, compared to what is happening to some competitors.

"The British promoters have less problems to adjust to market changes. The Spanish seem to find it harder to reduce prices." The company CEO indicated the different price reductions. "In the Balearic Islands, prices have fallen between 15 and 20% in Marbella between 20 and 25%, and the Costa Blanca, 35%. The levels of discounts depend heavily on the area and the existing oversupply" .

Through these sales, Taylor Wimpey remained certain level of sales during 2008 and 2009 when it sold 178 and 175 properties, respectively. "We are far from the 500 houses which were sold in 2006. In 2010 the British real estate company hopes to reach a volume similar to that of the past two years. The price cuts, with some recovery of the pound against the euro, the strength of the brand Taylor Wimpey in the UK and the appeal of Spain for the British, will allow the company to survive the storm, according to Ballester.

"To the British, have a house in southern Europe is almost a cultural thing," said the manager. "And Spain remains one of the top tourist destinations, has more stability and better connections than new markets such as Bulgaria or Turkey."

To meet the new demand, Taylor Wimpey is re-launching its promotions in the Balearic and Marbella areas where "the demand begins to match with the supply." For example, the British company will begin the construction of 53 homes in Elviria, near Marbella. The investment amounts to EUR 8.5 million. Taylor Wimpey has land available in Spain for the building of two thousand homes. But the group is going to be prudent in choosing the locations in which to develop its promotions. "There are homes in some areas of the Spanish coast that are not going to sell ever," believes Ballester.

Source La expansión

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