Spain-Bargain property in the age-old favourite destination

Still the traditional favourite for holiday home buyers and great prices now in the offing

Spain – land of opportunities

Throughout Europe and across the world, property markets have slumped this year in the aftermath of the US sub-prime crisis, interest rate increases, the mortgage freeze and the stock market collapse.  Spain is no exception, and when you factor in an oversupply of property and a drop in demand, the result has been a fall in prices in many areas of twenty or even thirty per cent.

Obviously that’s not good news for everyone, but it does present a very attractive opportunity for potential buyers.  The Spanish property market is well established and Spain has always been popular with Britons both for holidays and for overseas homes.  For investors who are in a position to ride out the credit crunch, property in Spain offers the tempting combination of bargain prices and good long term prospects.

As always, it’s vital to do your homework.  Be clear about your objectives, and research your chosen area.  Even if you want a family holiday home, it’s a good idea to choose one that could be rented out to help cover costs and it’s always worth considering how easy it will be to sell the property in future.  Make sure the area you’ve chosen is easily accessible – with low cost airlines’ revenues under pressure, it pays to choose a property near one of the more popular airports.  If you’re planning to buy in a new development, you should also research the developer.  There have been casualties among Spanish property developers this year, and you need to avoid the complications and financial risk of any possible default.

The Spanish property market is in the doldrums, so a reality check is essential before you invest.  But there’s no doubt that property in Spain currently offers excellent value to the British buyer who goes into the deal with clear planning and good advice.

Article posted 2^nd December 2008

Property Venture^® is an independent, UK-based agent. We help time-strapped investors and holiday home buyers, buy abroad by guiding through the buying process, so reducing the hassle. Overseas members of NAEA. 

Copyright Property Venture^® 2008