Spain

Spain is still the number one destination for second/holiday home buyers from the UK. However, with over supply, over valuation and deflation of the property bubble, it´s not an area we recommend for short term investment. Prices have come down in some areas, others have held steady, but overall the investment aspect of Spain is comfortably outscored by other destinations.

See News Article: Pain in Spain

June 09 - Figures from the National Statistics Institute reveal quarterly house price fall of 7.6% compared to last year. As unemployment has risen to 18% and oversupply of property is estimated at 600,000 units.

June 09 - Spanish Bank BBVA reports Property prices in Spain are on target for a 10% fall this year, with another 12% in 2010, following approximately 30% fall since summer 2007.

January 09 - New figures out from the Ministry of Housing puts the official house price growth at -3.2% for 2008. However, other entities believe the fall is much larger. Tinsa suggest almost -9% while Sociedad de Tasación put the figure at -6.6%. (In our humble opinion, these figures do not tally with anecdotal evidence we´ve heard, however, they are countrywide numbers, which perhaps evens out the falls of the Costas and Madrid. Plus, the numbers are a ´lag indicator´.)

A recent Survey suggests there are more empty new built property in Spain than ever. With estimates between 800,000 and 1.4 mil property standing empty For Sale. Part of the problem comes from the lag time between construction starting and delivery. Therefore despite the fact the market is in freefall and transactions down by more than 50%, more new aprtments are still coming onto the market. It is suggested that the back log of this will take over 2 years, even if sales remain this active.

This will have a further negative effect on prices and coupled with the Euro Strength Vs Sterling and many other currencies, it means investment in Spanish property (Particularly the coastal areas) should be avoided for at least another year or two.

See International News   UK News

However, if you´re looking for a great place to have a weekend/retirement property, Spain is a great option. The culture and lifestyle are fantastic, Golf enthusiasts can play numerous courses, watersports are obviously popular, but don´t discount the mountains, summer and winter, all in one day!

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