Spain: a buyer’s market?

Investors considering Spain have received some good news this week…

The average price of a house in Spain this April is 3.6% lower than it was just a year ago. Whilst this is indeed great news for prospective investors, there is, inevitably, a flipside, which is Euros may now cost 16% more to buy than they would have a year ago.

A spokesperson for Kyero.com, explained: "This is because the Pound is currently worth significantly less against the Euro than it did 12 months ago, so the house price depreciation benefit is eroded by the strong Euro/weak Pound situation. 

"This particular currency situation has arisen because global confidence in the Pound has been dented temporarily; this is thanks to worries about the knock-on effects in the UK of the sub-prime mortgage crisis in America and the near-collapse of Northern Rock last year.  Unfortunately, all of this currency negativity has been putting Brits off buying Spanish property when in actual fact, now is probably a perfect time to buy a home in Spain. 

Best time to buy

Mike Hamilton, Sales Director of Casas de Lorca, added: “Seasoned investors are well aware that in a market environment where there are weakened sales projections, developers will ensure that those coming to the market are given the best deals possible. For those with the money to buy in, a slowing property market such as the one in Spain right now represents the absolute best time to buy. 

“Not only are the smaller and the less scrupulous developers squeezed out of the market, but the larger developers who know what they have to do to generate sustained interest in their projects go all out to accommodate the buyer. 

“It’s a buyer’s market in Spain, and the buyers who negotiate the best property and currency deals will reap the strongest possible dividends in the future.”