Thursday, September 8, 2011

Substantial price falls in Spanish coastal areas encourage buyers


Investors seeking a bargain should turn to the Spanish real estate, one sector commentator has noted as there are "some outstanding bargains to be found" in the country.

Adrian Warriner, Managing director of Spanish-Living.com explained that this is the ideal time for buyers to jump in as in some of Spain's coastal areas, price falls have been substantial. He suggested Costa del Sol, where property prices have plummeted by ten per cent this year alone.

He highlighted other locations such as Nueva Andalucia, San Pedro and Guadalmina because they "provide easy access to up market hotspots Puerto Banus and Marbella".  Apart from the bargains, the government's decision to halve value added tax on new property purchases, bringing it down to just four per cent and discounts offered from the banks with offers up to 100 per cent finance on certain homes has resulted in more influx of first time buyers.

Finally, he pointed out the fact that the Euribor is currently at its lowest rate since 1999, which means there are encouraging conditions for borrowers. Lower property prices may encourage more investors to look into the options open to them in Spain and elsewhere in Europe

 Peter Mindenhall, analyst at IPINGlobal.com, stated that the market is segmented at the moment, with some houses are “just on the market” and some are only “priced to sell.”  But still,   exceptional value can still be found in the country. He also issued a note of caution, stating that investors looking for a good deal on properties should carry out the required research if they are to find “the most competitively priced properties”.

Mr. Mindenhall commented: “The banks have yet to declare much of the backlog of repossessions on their books - when this happens, the average sale price can be expected to fall further.”

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