Wednesday, June 17, 2009

Lifestyle buyers in Spain enjoy a home away from home

Investors looking to rent out their properties in Spain to tourists and holiday home buyers could be buoyed by news that the Iberian nation remains a Holiday favorite.

According to Homes Worldwide, the Iberian nation continues to attract Britons, despite the economic downturn and the falling value of the pound against the euro.

Murcia was cited as an area that offered good value for money, particularly when compared to other more established regions, such as the Costa Blanca. Madrid and Barcelona are particularly good for low-cost breaks in the sun. This could be welcome news for overseas property buyers looking for homes in Spain, with low-cost housing and a strong tourist industry, overseas investors might be able to pick up a bargain in the Iberian nation.

According to Carmen Hernandez, market analyst at the Spanish Tourist Office in London said that Almost 90 per cent of Britons who traveled to Spain in 2008 had already been there on Holiday before and growing competition from other Mediterranean countries is not denting the appeal of Spain.

According to Spanish Property Insight, recent study by Network of Property Experts revealed that prospective purchasers of Spanish real estate could see the valuation of homes fall by as much as 40 per cent for some resale. The reduction in property transactions has pushed vendors to drop their asking prices; if in the past this was done with reductions of two to three per cent now the drop is around 30 per cent to 40 per cent.

The decline in the number of transactions was attributed to the tight lending criteria and harsher conditions for mortgage credit. However, this could present a number of cash-ready overseas property investors, as sellers reduce their asking prices.


imperium said...

Its a great place to be, the temperature is nice all year round, there is a low crime rate and rarely anything to worry about. Spanish property is also very cheap at the moment.