Friday, June 19, 2009

Distressed sales in Spain offer bargains

Now could be a good time to buy property in Spain as recent figures indicate that in April, the cost of housing fell by ten per cent and buyers can pick up many bargains due to the economic climate, it has been reported.

According to reports from appraisal company Tinsa, the Mediterranean coast areas were the hardest hit and prices dropped regularly over the last 12 months, down 1.2 per cent in April last year, and then 8.3 per cent in August. The steepest decline was in December 2008, when prices were 14.3 per cent lower than they were in the same period during 2007.

Second home buyers who are looking to purchase Spanish property could be able to take advantage of the current slump in the market. According to the National Institute of Statistics, the number of property transactions in Spain has slumped and the housing sector as a whole has shrunk by more than half in the last two years. However, this could present a number of cash-ready overseas property investors, as the drop in sales may entice sellers to reduce their asking prices.

Meanwhile, Professor Gonzalo Bernardos of Barcelona University recently predicted that values would stop dropping in most places in Spain before the end of next year.