A ‘silver lining’ for cloudy spain?

Spain’s property market could recover quicker than the UK and US markets, claims one expert…

Despite growing concerns in the UK housing market, the ongoing credit crunch and the perceived pending recession, investors should be careful not to associate the UK and America’s shortcomings with that of the rest of the world, argues Mark Bingham, Managing Director of Owner Invest

He explained: “Spain in particular has been dragged into the fray as a result of recent bad press about isolated cases of land grab and has undoubtedly been hit hard by the lack of UK buyers at a time when many are curbing their spending.

“Spain - unlike the UK and USA - has a silver lining though, as many Spanish nationals have not spent excessively. Therefore experts predict that the property market will recover quickly and the levelling off of the currently high Euro will be instrumental.

Huge rental demand

Mr Bingham added: ”One must also consider the rental market. Differing from the UK, rental is a popular way of living in Spain and as such there is still a huge demand, a demand which is likely to grow in the short term and one which will keep the Spanish property market buoyant.

“However, Spain does have one thing in common with the UK, it is a ‘buyers’ market and currently there are bargains to be had. Those investing now in a flat market are assured of lower entry costs, coupled with the burgeoning rental market.

“These two factors plus analysts predictions that the Spanish slump is temporary make this an exciting market to be investing in.”