Tuesday, November 17, 2009

Spanish property is now safe to invest in if buyers are sensible

Property in Spain is now safe to invest in if buyers are sensible as the market may be showing hints of stabilising, an expert has argued.

According to Kyero.com, property expert Martin Dell noted that the Spanish government has said the bottom of the market is close. He stated that some data from the government cannot be relied on, such as the official price figures, with these underestimating the extent to which values of Spanish rental property have fallen. However, Mr. Dell stated, Property prices in Spain may be close to bottoming out and people can expect to invest "safely" in the belief that the upturn is not far away.

In news of interest for overseas investors, Kyero also noted that the smallest price falls are taking place in the areas that are favored by overseas buyers, such as Andalucia. Meanwhile, Data from the Spanish Housing Ministry for September revealed that the annual fall in house prices was 7.8 per cent in the month, compared with a record 8.2 per cent in the year to August. Such figures follow recent data from Tinsa recording an 8.3 per cent drop in the year to September, which was also a reduction in the rate of decline, Kyero.com noted.

AFI Felix Lores, Consultant for financial analysts told Reuters the statistics were unexpected. He commented: "This annual drop was a surprise as we were expecting prices to begin falling by double-digits before the adjustment had ended."

Last week, chief executive of overseas investment firm Assetz Stuart Law told the Independent that should the market be stabilizing, this may offer British buyers good reasons to buy with better times ahead, while further decline may create an increased supply of bargains.