Monday, March 16, 2009

Falling property prices make 2009 a good time to invest in Spain

Falling property prices in Spain means that buyers are likely to find a bargain retirement or holiday home, it has been reported.

According to Reuters, prices in the country could drop by 30 percent making 2009 a good time to invest. Spain's College of Registrars found that during the final quarter of 2008 113,274 homes were bought and sold in the country. During the third quarter, 130,884 property transactions were completed and the drop was larger than the 8.6 per cent fall between the second and third quarters in 2008.

Data from the country's Housing Ministry shows the average price of property fell to 2,018.5 euros per sq m in the fourth quarter of 2008, compared with 2,085.5 euros a year earlier meaning buyers may be able to take advantage of the low prices associated with a drop in demand. Anyone looking for a property in Spain could find they can pick up a bargain, with over one million properties currently standing empty.

However, Mark Stucklin of Spanish Property Insight pointed out the continued desirability of properties in popular areas.

He commented: "Over ten years however, Spanish property values are still 215 per cent higher in Andalucia, 211 per cent in Murcia and 200 per cent in the Balearics". The areas of Sevilla, Cadiz and Valencia also saw prices "creeping up", with year-on-year rats of 3.4 per cent, three per cent and 0.9 per cent respectively.

Susana Suspenda, marketing and operations manager for Spanish Hot Properties said that foreign buyers could take full advantage of the forthcoming price increases by snapping up a residence while they are underpriced.