Wednesday, January 21, 2009

Property prices in Spain are now back at the same levels as 2005

Property prices in Spain are now back at the same levels as 2005 and this Falling prices may mean overseas property buyers are able to snap up some bargain properties in the coming months.

Jose Luis Escriva, Research head at BBVA, Spain's second biggest bank, has suggested that property prices in the nation could fall by five per cent in the next 12 months . During 2008, Property prices dropped in the majority of provinces by 8.8 per cent compared to the figures for 12 months earlier. Madrid experienced a drop of 7.6 per cent, followed by Murcia and Tenerife which experienced price drops of 5.8 per cent and 5.3 per cent respectively . However, Sevilla, Cadiz and Valencia saw prices "creeping up", with year-on-year increase of 3.4 per cent, three per cent and 0.9 per cent respectively.

Spain is still proving alluring to British property buyers despite falling prices and nearly 760,000 Britons find the nation irresistible and moved to Spain. People looking to buy property in Spain may be buoyed by the predictions of Spanish Hot Properties that prices in the country could drop by a third, making 2009 a good time to invest.

According to the Independent, the real estate agents in Spain have been forced to reduce asking prices in many areas. The publication believes that this will ultimately be good for investors, as they can snap up properties while they are unusually cheap before the market picks up again.

The Independent reports: "No downturn lasts forever - the worst time to buy suddenly becomes the very best time."