Spain is suffering probably the worst crisis since the Civil War in 1936-39. There is a lack of finance, huge amounts of debt and cuts, rising unemployment and a dramatic fall in property prices. The front pages of the media always show the worst side of Spain, but to be honest, life is going on in Spain and the country still has an interesting property market with succulent prices for home buyers and potential Below Market Value bargains with strong rental yields for investors.
I am not just saying that….it is just the facts as prices go down and opportunities for home hunters and investors pop like mushrooms in the forest.
In the end, Spain is still a good country to live in and to invest in specific markets when the circumstancies are appropriate, as a few thousands British home-buyers and investors did in 2011. The challenge is knowing how to do it properly and to take advantage of the situation.
All of the bad news surrounding banking is going to cause a price war for sure. Just thinking about it caused many sellers to drop their home prices by about ten percent just last month. However, even though this crisis is not good news, outside of Spain, the market is showing potential. According to housing records on registradores.org, purchases of homes in Spain by other Europeans has risen about 12.4%. There are a number of people from France, Germany, and Russia that are enjoying the lower prices, as well as people from all the other nations in Europe.
This statistic does not hold true for the British, however. The amount of their purchases has not seen such an increase, because they never really stopped buying Spanish property. Citizens of the U.K. still beat out citizens of France (the second highest purchasers) by a two to one margin.
Approximately 22,261 homes were purchased in 2011 by foreign purchasers. If you are looking for property investment opportunities in Spain, the right time has come: contact us.