Spanish Property Market has Hit Bottom Debate Over Recovery

The Spanish property market has hit bottom, but prices are unlikely to see any growth until 2011 according to a partner of the Knight Frank estate agency.

"If you put a home on the market at a 35 percent discount to highs from three years ago, and partially-financed, prices are going to stay at these levels until 2011," Prieto told Reuters in an interview.

But for sales to go ahead, properties need to be located in prime areas within cities' metropolitan circles.

"If you're trying to sell somewhere like Valdeluz or Sesena, 100 kilometres outside of Madrid, forget it. Properties on the coast or with these kinds of setbacks are going to be stalled for years," Prieto said.

We disagree about 1 thing, the coastal properties. Spain continues to be one of the most popular destinations with British buyers of overseas property. The fact that prices have fallen and bargains can now be found is unlikely to do anything to change that fact.

British buyer numbers are increasing in overseas property markets around the world. Spain has been slow to see the real benefit of this because of the repossessions problem, and because people are trying to wait just long enough to buy out the market -- as in to buy a property at the lowest price possible.

When this waiting period is over, and/or when credit conditions improve it is likely that the coastal areas that have not been overdeveloped will recover quite strongly based on increasing foreign demand.

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Prices down and demand up in Spain

The cost of property in Spain has declined but the desire to buy property in the country has risen, new data suggests.

Recent figures from real estate agents Look & Find, which has offices across the country, showed that since the start of 2008, prices have fallen by 30 per cent, reports Spanish Property Insight.

In the 12 months leading up to January 2009, prices dropped by 25 per cent on average.

This coupled with the five per cent decline this year takes the cost of property in the Iberian nation down to the levels seen during 2004, Look & Find noted.

However, as prices have fallen, the demand for property in Spain has risen.

A spokesperson for the real estate firm told the Spanish press: "Demand that has been contained for more than a year and a half is now starting to grow again."

Major metropolitan areas, such as Seville, Barcelona and Madrid were identified as areas of particular interest to buyers.

It is at these destinations "where prices per square metre had reached the highest levels and where housing affordability was the most difficult", the company claimed.This comes after Titan Properties asserted that there has been a 20 per cent decline in property prices along the western Costa de la Luz, reports Fly-2let.com.

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Repossessed Spanish Property: Holiday Home Buyer and Investors Dream

Spanish property is currently offering many bargains, as the market crash causes prices to drop 16% with another 15% forecast for the coming year. But the biggest bargains are the Spanish repossession properties. Liam Bailey chief market analyst for overseas property portal Property Abroad commented on repossession property in Spain:

"If you have ever seriously considered investing or buying a holiday home in Spain, repossession properties are like the reduced section of a supermarket 10 minutes before closing time. We are listing properties at 1million Euros below their valuation price. Now, for holiday home buyers these are perfect, imagine having a €500,000 budget, and getting a 1 million Euro villa in Marbella to spend your holidays in for the rest of your life -- it's just incredible.

"But the one I would recommend for investment is a repossessed property in Marbella priced at just €203,037, which is some €580,000 below what it has been valued at. Properties priced that low but yet that far below their value have got to be recommended for investment to be re-sold to Spaniards looking for a home in the area when the area recovers. €580,000 is a big window of opportunity, and when the global economy/Spanish property market starts to recover even if you make half that you have more than doubled your money."

Property Abroad have hundreds of repossessed Spanish properties, the being sold for the farthest below its market value is the one referred to above a repossessed property in Marbella with a valuation price of €1,560,000 being sold for just €477,400.

Property Abroad has repossession properties in Puerto Banus, Nueva Andalucía, Estepona, Duquesa and of course Marbella, find out more by visiting the site.

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Spanish Property Presents Bargains, Tenerife Growth Continues

Spanish property prices could drop by up to a fifth in the next year, according to market experts. Figures from the Spanish Property Owners Guild (SPOG) show that property prices have already dropped 16% and the body is forecasting a further 15% drop in the coming year.

Another study released shows that the number of British people buying property abroad has risen significantly since 2001, and that 54% are buying overseas property as holiday homes or as retirement homes. For these people, many of whom will buy in Spain; further price drops are great news.

While price-drops in Spain are a very negative event, especially for those who invested before the crash, but Liam Bailey, chief market analyst for overseas property portal Property Abroad talked about some of the positive aspects of the drop in prices.

"Spain is still the most popular destination with overseas property buyers, and that is almost completely undeniable owing to the fact that several recent overseas buyer surveys have put Spain in first place. And with Spain's popularity with tourists remaining strong, this translates to higher rental yields on Spanish property. In the current climate, most people are buying-to-hold for the economic recovery, and I would recommend buying a property in Spain with this in mind more-so now than I would have a year ago. If you can get a real bargain, and I mean a good property, cheap as chips in an area not over-developed, buy it."

"Despite the situation in Spain," continued Bailey. "Tenerife property has continued to grow in value; in the middle of 2008 a studio on a resort complex in Los Cristianos could be bought for €57,000. We (Property Abroad.com) are now listing the least expensive resort complex studio in the same area of Los Cristianos for £62,000, which converts to over €67,388, a price rise of £10,000 (just under 5%) in 6 months. Now undoubtedly some of that is because of the change in the sterling/euro exchange rate, but in today's climate a price-rise is a price-rise.

"I am also happy to see Tenerife properties continue to grow in value, because that is what I predicted 6-12 months ago."

About Property Abroad

Property Abroad is rapidly growing into one of the best known, trusted and most successful overseas property portals in the U.K. With a slick dynamic site and very reasonable rates Property Abroad currently has among the most extensive worldwide property listings on the net.

To find out more contact Liam Bailey on liam@property-abroad.com or the team at: info@property-abroad.com

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