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The boom that has been the housing market in Spain is starting to slow down, according to many analysts and news reports, including one recently issued by Reuters. The slowdown in price growth will actually make overseas property buyers in Spain more attractive especially to the British and Germans who make a large percentage of international buyers in Spain.

Much of the slowdown in the housing market has come in the capital city of Madrid and the more metropolitan areas. Crowded central cities and streets have helped to push many buyers out to new suburban developments on the edge of the cities, which have grown substantially in the past few years. Madrid and Valencia, in particular, have seen countless new streets and developments go up around the cities.

Sanchinarro, on the northern edge of Madrid, is a perfect example of the development that has taken place. This higher-end neighborhood is quite different from the Spain of street life, with larger houses, people indoors enjoying the air conditioning and gated swimming pools. A year ago homes here sold on average in about 100 days, but are now taking twice as long to sell.

Holiday villas along the Mediterranean Coast have also grown substantially in recent years. While the housing market in these areas should to continue to be solid, it is also more likely to go at slower pace than in recent years. Thousands of overseas tourists and investors will always be on the lookout for property that can be used as a vacation home or for rental income. Britons and Germans have been the most popular foreign visitors and buyers in the resorts and coastal areas.

As a result of the slowing market, investors who are looking for quick cash will have a harder time buying and selling properties for a substantial gain. Those who want a long-term investment, a second home for holidays, or a rental property for long-term income will have a much better time finding places in the coming months.

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