Is Now the Time to Buy Spanish Property?

April 28th, 2009

For buyers with access to capital, this may be the best opportunity in decades to load up on property in Spain.

Everywhere you go in Madrid, For Sale signs on half-built apartment blocks dominate the Spanish capital. No surprise: The global recession has hit the country’s once-booming real estate market harder than most. Property prices from Barcelona to the Balearic Islands fell 6.5% in the first quarter of 2009 alone. They are expected to drop 35% or more from their 2007 peak by the end of this year.

The economic downturn—in Spain and dozens of other countries—has left many homeowners struggling to keep up with their mortgage payments. But for well-funded property buyers, the recession is opening up a bonanza of cut-price deals. When times were good, cheap credit fueled almost insatiable demand for second homes and investment properties. Now, financing is harder to come by, and developers are slashing prices to offload stock built for a dwindling number of buyers.

The power shift in property sales is gradually enticing investors back into the market. Double-digit price declines since 2007 and the renewed strength of the dollar against foreign currencies make buying overseas more affordable for Americans.

Related posts:

  1. Confidence Growing In Spanish Property Market
  2. How To Sell Your Spanish Property Quickly
  3. Spanish property market receives positive outlook for 2009
  4. New Mortgages Rise For First Time in 18 Months
  5. Spanish Property Glut Shrinks

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