Time to buy in Spain?

While there has been plenty of apocalyptic coverage of the Spanish property market over recent years, new figures show that the decline in property prices is perhaps less severe than many think.

A new report shows that prices for property in Spain fell by just 4 per cent in 2011 and while the downward trend may continue in 2012, a levelling off of supply and demand is likely to result in stabilising prices.

House prices in Spain fell just 4 per cent in 2011

The figures from Sociedad de Tasacion show the average cost of a new house was €213,840 (£176,490) in 2011 and that with 81,000 properties being built during the 12-month period. Barcelona had the most expensive property, while the lowest prices were in Murcia.

Although the property organisation believes this downward trend for house values will continue in 2012, it has suggested the balance between demand and supply will improve in the coming year.  This is because the number of available residences will begin to match the needs of buyers following a chronic oversupply in recent years.

However, figures published by the Royal Institution of Chartered Surveyors (RICS) in November indicated that real estate agents in Spain believe the supply of distressed properties will continue to rise as a result of the eurozone crisis.

Quality buyers in big demand with Spanish banks

Other property experts believe that there are bargains to be had for ‘quality buyers’ in Spain thanks to the incentives being offered by banks to offload property assets from their balance sheets.

Nick Marr, director of Homes Go Fast, said: “Spanish banks have huge numbers of distressed properties on their books and are desperate to sell these to foreign buyers.  Consequently, they are offering excellent mortgage rates and terms to so-called ‘quality buyers’ in order to encourage them to take the homes off their hands.”

 

  

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  © International Property News by HomesGoFast.com

 

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