Thursday, July 3, 2008

Investors of cyclical Spanish market cannot lose-out

Paul Collins, property editor at BuyAssociation, said that conditions for overseas property investors in Spain should improve in the future as it tends to go in cycles.

Terry Walker from PropertyinSpain.net stated that only the coastal parts of the country have become oversaturated in recent years such as the Costa del Sol along the coast, other areas have not yet been tapped into. Many investors are looking to buy a residence further inland and they could snap up potential bargains before mass tourism increases prices in these regions.

Mr. Walker further said that 'real' Spain with welcoming villages and bargain properties still exist and in this "long-established market" property investors cannot possibly "lose out". The Association of International Property Professionals (AIPP) stated that in times of global economic crisis, established locations like Spain remain popular with foreign investors.

Travel writer Stephen Morgan praised the country, describing it as a "lifestyle destination" as it offered many benefits to overseas investors such as good climate, beaches and attractive scenery. This marks a sharp contrast with many emerging markets across the world, as many of them are considered as pure investment spots rather than places to enjoy the change in lifestyle.
According to the Spanish Property Owners Guild (Spog), the downturn in Spanish housing market is ideal for those who want a property for personal use. The drop-off in housing prices as vendors wants to sell their stocks means that buyers may be able to purchase a house at a bargain price. Property experts believe the market will pick up again as it is cyclical and lead to resurgence in property values.

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