Spanish Economy Is Dragging Down Property Values – Will They Fall Any Further?

Spanish PropertyI was out at a local business network meeting last night and got talking to a couple of guys about Spanish property. One thought prices were unlikely to fall further while the other, more cautious, businessman had the opposite opinion and believed much of what he had been reading in the press this year.

So which one was right? The cautious businessman or the more optimistic one?

It turns out both of them were right.  The optimistic businessman happened to be an experienced property investor while the other was someone considering Spain largely because he had heard about all those unbelievable discounts you can get out there.

They both knew about Murcia, however they were a little unsure about this largely unknown region of Spain. Surprisingly, none of them mentioned property in Marbella or any of the other more popular resorts on the Spanish coast.

I was puzzled by this…

In a property market such as the one we have in Spain at the moment, the last thing property investors should be looking at are those regions that were overlooked, even during the last property boom.

With the Spanish property market, it is all about buying quality property in good locations at a substantial discount below their original prices.

The best thing about investing in

Marbella is arguably Spain’s most fashionable and popular holiday resort, so even the most cautious investor can see the value in a market where 100% mortgages are also available to investors.

As I said to my two friends at the network meeting investing in Spanish property requires a degree of knowledge to choose the best locations and find investment property at the right price.

It is true that the banks are attempting to reduce their exposure to the many property developments that were built during the boom years and this makes it an ideal time for those investors looking for a holiday property that will increase in value over the long term.

We also hear this week that Spain is creating a ‘bad bank’ to absorb the tens of billions of Euros in unpaid loans and unsaleable property. This, it hopes, will clean up the banking sector and put the economy on a more even keel.

Now the knock on effect of all this is that the banks will be attempting to wrap up the sale of properties they believe need to be sold before autumn and winter arrive. It will be interesting to see the further opportunities this will present to investors over the coming months. They will also be offering greeley co hail damage roof repair services during the winter season.

Either way as I advised the more cautious businessman, now is an ideal time to invest in that Spanish holiday home >and take advantage of low risk finance in the short term and strong capital growth prospects as the Spanish economy recovers in the long term.

What are your thoughts on Spanish property prices? Please leave your comments below.

Kind regards
Brett Tudor

Property Expert

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