Property bargains to be found in Spain but beware of ghost towns

Property prices in Spain have ‘plummeted 22 per cent since the financial crisis of 2008’.  That’s the figure quoted by the Daily Telegraph in a recent report highlighting the significant number of empty properties in the Mediterranean country.

With so many empty homes available, it’s no surprise that you can pick up a stunning property bargain in the country.  But, you also have to be careful of buying in a ‘ghost town’, as our guide explains.

Huge discounts available on property in Spain

With Spain’s unemployment rate reaching 23 per cent – a Eurozone high – thousands of properties in the country are sitting empty as few locals can afford to buy a new home.  This means that prices have fallen, offering great opportunities for foreign investors to snap up a bargain.

As the Telegraph reports: ‘Property in half finished developments across Spain is being offered at discounts of up to 50 per cent of their original prices as banks struggle to offload a glut of real estate.’

However, buyers are being warned to look out for so-called ‘ghost towns’ – locations with thousands of empty properties and few of the amenities initially promised when construction began.

Buyers warned to look out for ‘ghost towns’

The newspaper highlights the ’ghost towns’ of Sesena and Yebes.  When construction began in these locations in the mid 2000s, both promised huge infrastructure improvements, thousands of new properties and a range of local amenities.  However, few of these planned benefits have been forthcoming.

In Yebes, 9,000 apartments and small houses were planned in an idyllic country setting.  There was also to be a high-speed train station so workers could get to central Madrid in less than 20 minutes.

However, only 1,500 properties were finished before developers went bankrupt.  3,000 people live in Yebes instead of the projected 30,000 and government officials never launched the train service.

So, if you are looking to snap up a property bargain, make sure you check out exactly what amenities are available.  Many new developments promised shops, schools and transport links which may have never ended up being built.

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