Monday, February 15, 2010

Falling prices and favorable exchange rates attract investors

Falling prices in Spain and favorable exchange rates could make it an ideal destination to pick up a Bargain property, it has been reported.

According to the Financial Times, the property market is readjusting and buyers are now returning to take advantage of substantial reductions in prices. Many vendors are keen to sell, which is producing newly affordable property in the country. Furthermore, thanks to a strengthening GBP, Spain has become eight per cent cheaper for Brits in the last 12 months.

Meanwhile, World First has reported a large increase in the number of British investors purchasing euros for overseas property purchases. They have seen a 40 per cent rise in the number of its clients taking advantage of the improved exchange rate, and a 24 per cent rise in new enquiries for the currency. This could be a boost to the property market in Spain where falling prices and the poor GBP to euro rate have been keeping investors away, according to Overseas Property Professional reports.

Sterling has reached a rate of EUR 1.15 for the first time since August 2008, something which OPP put down to a run of good news for the UK economy.

Christopher Chad, project manager of property company Property Frontiers, explains that massive price falls in 2010 will help to attract investment from foreign buyers.

He commented: "this year there will be an increasing trend for people looking to buy property in the more traditional investment hotspots. It is all about looking at tourism trends and recognizing where the most likely capital growth is likely to take place."

The news comes after the National Association of Estate Agents International recently recommended that early investment in Spain was essential in 2010, to ensure buyers were able to capitalize on bargain properties.