Sunday, January 10, 2010

Overseas investors in Spain should try to make cheeky offers

House prices in Spain are continuing to slide as a result of the economic downturn and investors planning to take advantage of falling house prices in Spain should not be afraid to make low offers, a property expert has said.

According to, Martin Dell, property expert has said that some Spanish property sellers are currently willing to reduce their prices by as much as 30 per cent, though some see greater declines as possible as the end of a decade-long residential construction boom coincides with credit market turmoil. The fall in mortgage approvals coupled with bank pressure on developers with unsold new stock is creating a raft of top bargains. It means that potential buyers looking to purchase property in Spain could be in an unusually strong position to do so.

Mr. Dell explained: "Once you've found a property that appeals, make a cheeky offer.
What's the worst that can happen?"

Gerard Rees, director of Mercers at the firm's Mazarron office, said Spanish property can now be picked up for bargain prices as sellers curtail their losses, the property market is readjusting, noting that buyers are now returning to take advantage of substantial reductions in prices.

He explained that many vendors are keen to sell, which is producing newly affordable property in the country. The financial gain would be good over a longer period of time, adding that the continuing popularity of this country helps ensure that property purchased in Spain will always hold its value. "We're certain those who pick up deals now will be well placed to make a significant return on their investment over the next two to three years," he added.