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After years of hotly increasing values, the Spanish real estate market is looking to slow down a bit this year. While that might not be what sellers want to hear, it makes it a great time for purchasers and real estate investors to get into this ever popular market.

Spain is the most popular international location for British property buyers. The popularity of the country has help to see sales and values increase substantially over the past decade. But, according to recent reports, a combination of slowing sales and an oversupply of housing is leading to a slowdown in the market.

According to a report in news service Bloomber.com, prices are already starting to decline across the board in Spain. Last year builders constructed 750,000 new homes and apartments across the country, more than in France and Germany combined. Unfortunately for these builders, annual demand is only running about 60% of that right now. This year, builders expect to construct less than 700,000 new properties.

Gonzalo Bernardo, professor of Economics at the University of Barcelona sees the glut of housing as prime reason for the slowdown. “The real killer of the housing market is the immense oversupply. Prices are already unofficially falling,” he noted in the article.

Selling Spanish property online has also seen an increase of activity with Homesgofast.com overseas property portal. Nicholas Marr CEO ‘We have an 30% increase in private sellers advertising their Spanish property with us. The majority of this increase is from German and UK owners who are looking to appeal to overseas buyers. We advise them to price their properties realistically, buyers will always compare like for like and there are some real bargains out there.

The current market, while distressing for sellers, is proving to be a boom for investors. For those looking for long term value and a second home, it’s a great time to be looking. Patience is key, but there are plenty of great values. Additionally, builders are offering plenty of incentives to buyers of new properties. These include discounts, cars and free garages, among others. It’s a good time to be looking for homes in Spain.

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