Friday, December 18, 2009

Demand for Spanish property is on the up

Falling house prices in Spain due to economic crisis and subsequent recovery of market will see more investors buying into the property market there soon, it has been predicted

Martin Dell of said that the high unemployment rate in the country is hampering the wider economy which in turn pushes house prices down further, while at the same time other European countries are recovering, leading to a situation whereby more overseas investors will "pounce" on a market full of bargains soon. Mr. Dell stated that this is already apparent at the "top end" of the market in Spain and is gradually working its way down to the "mainstream".

Irea Mikel Echavarren, head of Spanish real estate consultancy stated that prices have already dropped as low as they will go and anecdotal evidence in the sector has indicated that the level of transactions is going up. "As soon as there is a general perception that things are getting better, house prices will stop falling and start rising," he added.

In more good news for investors in Spanish property, Paul Bradley, Spokesman for the Spanish property Owners Guild said the rate of bookings for rental property in the country was up in October and is ten per cent up for 2010, as demand from sun-starved northern Europeans returns.

However, he advised that those looking to buy rental properties to ensure they have "exceptional rental qualities to defend a purchase", noting that "capital gains are not expected for at least four to five years" as a backlog of unsold properties remains to be cleared.