When Property Buying in Spain Watch the Market

Summary: Falling prices mean opportunity for those hoping to buy a Spanish property

Britons dreaming of retiring to the Spanish sunshine and of buying property in Spain will find the time for watching this market closely is right now.  While current investors are no doubt concerned about the market’s apparent downturn, the news is relatively good for future buyers.

According to the Spanish College of Registrars, residential sales are down by as much as 10% in Spain which has many believing the country’s boom days are over – at least for now.  New property sales for the first six months of 2007 fell by more than 12% and the sale volume for resale properties dropped about 8% so, when buying property in Spain, watch the market.

The slump is being blamed on the high interest rates in Europe and higher property prices within the country as a whole - compared to up-and-coming spots like Morocco and Bulgaria, the prices in Spain do tend to be on the higher side!

Additionally, the development of these other emerging markets is likely causing some of the tarnishing on Spain’s prices because it’s taking demand away from Spain and falling demand can result in falling prices.  Although there are some downsides to buying property in Spain, many find the landscape, the developed property market and the potential draws for tourists still make this country worth a very close look.

As the sale rates fall, other chances are taking place in the Spanish property market.  Britons who will settle for nothing less than a Barcelona flat or a house in Madrid will find that prices are also dropping even in these incredibly attractive locations. 

With demand generally weakening across the country and expatriates and investors looking more closely at other pastures, the short-term future of the market is a little uncertain.

What this means for Britons who have their hearts sold on Spain however could be good news.  The time for those interested in buying property in Spain to look is now and the best approach to take at this point very likely is watchful waiting for the bigger cities unless a real steal is found.  Although reports show pricing drops in all the major regions, including Valencia and Madrid, if the slump continues prices could fall further.

The picture within Spain’s interior is also the same, but buyers will find things are a little different here.  Many of the interior cities and villages already have homes priced at levels comparable to other parts of Europe.  These locations however will not give buyers the seaside views that many seek.  They do offer a different flavour of living and many, such as Cordoba, are hot tourist destinations despite the lack of warm Mediterranean breezes.

Although investing in Spanish property for a quick profit on a fast flip and resale isn’t likely advised right at the moment, the market still has plenty of potential.  Investors considering tourism rentals might find the falling prices rather appealing.  Retirees and Britons who want to relocate too could benefit from the current market trend.  The Spanish market is cooling, but that doesn’t mean it should be considered out of the game.

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