Investors seeking a bargain should turn to the Spanish property market as High levels of distressed properties and unsold stock in Spain make it a buyer's market, it has been suggested.
According to Bloomberg reports, there are many reasons for people to consider purchasing real estate in Spain at the present time as the real estate values have now slipped to their 2003 levels, making it an enticing prospect for investors.
Commenting on the situation, Liam Bailey, head of residential research at Knight Frank, advised anyone considering entering the market to do so with caution. He said that buyers who choose a destination that they enjoy visiting on holiday to purchase a second home should have good rental potential as the property is likely to be in a place frequented by other tourists.
He commented: "There are reasons why properties are distressed. As an outsider coming into the market, it's so risky. You've got to get under the skin of the market and figure out why people are selling at a loss."
Despite the prices tumble by as much as 40 per cent in some regions, investors can still make a profit as a recovering market it is likely to present real estate speculators with the best opportunities for growth in the coming years. The news may prompt a number of individuals to look for Spanish properties with the country currently offering price reductions as a result of the market crash with the nation's Ministry of Public Works revealing earlier this year that a quarterly drop of 1.3 per cent was registered between July and September this year, while values fell 5.5 per cent on an annual basis.
Meanwhile, Adrian Warriner, managing director at Spanish-Living.com stated that for investors, the obvious advantage right now is the opportunity to buy in a market that's not far off rock bottom.