Wednesday, July 22, 2009

Top-end market in Spain offers opportunities for buyers

Spanish property will be more affordable in the next few months before the market bottoms out and demand for top-of-the-range properties in Spain could be set to rise, it has been predicted.

Paul Bradley, a spokesperson for the Spanish Property Owners Guild (SPOG) said that the top-end market is seeing completions and is now at the bottom. There has been an increase in enquiries and this means 2009 will see an extra seven per cent price fall before the market bottoms out. Those seeking bargains in Spain may wish to consider this while looking for somewhere to purchase.

Laura Nicoll, Director of Iberian International claimed that with the low level of construction currently taking place, there will be an "inevitable supply shortage in the coming years", arguing that this will inflate Spanish property values as a result. Foreign exchange firm Currency Index recent figures stated that two-bedroom flats on the Costas have seen their prices drop by an average of 30 per cent since last year.

Jose Luis Rodriguez Zapatero, the country's prime minister insisted next year will see renewed growth. He commented: "The government considers the worst of the crisis is already over and our resurgence will continue progressively, gaining more intensity in 2010 and it is reasonable to expect growth by the time we get to 2011".

Such a situation could help halt the slide in property prices while those buying property in Spain may gain if Mr. Bradley is correct, further price falls could mean more bargains for investors and then enjoy rising values as the economy strengthens.