Tuesday, July 1, 2008

'Good times' for Spanish property

Beatriz Corredor, Spain's minister for housing, in a radio interview said that this is a good time to buy property in Spain, as prices are only rising in line with inflation. Corredor also pointed out that some developers have dropped their prices, making this a perfect time to buy a newly built property.

However, she said the available level of supply is exceeding demand. Therefore, she has suggested that organizations who are selling property to "change their prices" accordingly in response to market conditions. Properties are currently being sold for less as a result of the recent downturn in the market. However, property experts believe that the market will pick up again and lead to a resurgence in property values.

The ministry of housing has revealed that the cost of Land in Spain fell to 251 Euros/m2 in March, a 7.7% drop compared to the same period last year. The official statistics shows that land prices are falling faster than house prices. The average land costs in Spain are now back to where it was in 2004.

Telegraph has reported that the glut of properties forced developers and vendors to sell property in Spain at a discount. Property experts suggest that those who invest shrewdly will reap the rewards once the credit crunch is over and the market begins to recover.