Spanish Property News

When the Central European Bank raised interest rates last year the Spanish property bubble burst. The oil price hike hit disposable income and the global financial crisis caused a credit squeeze. Now that the crisis has filtered into the real economy the property market has as good as collapsed with many estate agents going to the wall. Increasingly employment security seems fragile as job losses increase each month. Those people facing an uncertain future now have to tighten their belts. Buyers are scarce and some vendors are under increasing pressure to sell.

Now that the Spanish property party is over many new homes remain unsold, many are yet to be completed and big developers and construction companies are on their knees. As with many economies, the future looks bleak with the potential of a recovery some way off.

The property market for ex-pat buyers has its own twist. The British who have been the dominant buyer over the past 4 or 5 years have seen the pound lose 30% of its value against the Euro. So where is the good news?

The good news is for the people who have the resources to buy when the market is at its lowest point. You have the pick of the bunch, little pressure from other buyers and the ability to drive down prices further. Reports are that the properties being sold are on average between 30% and 50% off their peak. There are reports that some properties have sold for less than this, 60% and more. Clearly each transaction has its own set of circumstances, but if there was ever a buyers' market now is a time to start doing your homework and finding someone locally to help you find the best options available.