Buyers spoilt for choice with cheap property in Spain

  • 12 years ago
  • Uncategorized

The
Euro crisis, the struggling Spanish economy and the credit downgrading of 16 of
the country’s top banks may have worried many people thinking of buying
property in Spain.  However, due to
an oversupply of homes, prices of property in Spain have rarely been as
competitive.

If
you’re thinking of buying a home in Spain, now could be the perfect time.  Keep reading to learn more.

Weak euro and over supply of homes makes
Spanish property cheaper

One of
the main reasons why it is worth considering buying a Spanish property now is
thanks to the relative strength of the pound against the Euro.   If you’re buying in pounds, a
€100,000 Costa apartment now costs around £80,000 compared to £92,000 last
summer.

And,
with many banks and individuals looking to offload property, it is possible to
negotiate a real bargain in the country.

Spanish
property lawyer Jonathan Ogley told AOL that ‘for those wanting to get out of
Spain completely or who increasingly feel stuck, some hard decisions will have
to be made – including kissing goodbye to much of the cash you may have
invested in your property.’ 

If
you’re buying a property, you are therefore in a position of strength to
negotiate a great deal.

Spain also seeing rising rental yields

Another
great reason to buy property in Spain is to take advantage of rising rental
yields.  Official figures from the
Spanish National Statistics Institute show that April 2012 saw a year-on-year
increase in Spanish property rents of 0.7 per cent.

Catalonia
benefited from the largest rent rise in April 2012, with an increase of 1.4 per
cent recorded in the region. 
Asturias and the Basque Country both saw rental growth rates of 1.2 per
cent.

Rising
rents have been attributed to a high demand for homes.  Assetz
News
reports that ‘the tough economic climate and Spain’s unemployment
problems have forced many people to rent rather than purchase homes.’


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