Property Prices Fall – What’s New?

If you are looking to buy Spanish property, you will have realised the Spanish property market has been undergoing problems in recent years.

The prices of property has fallen, with unemployment at over 20% people are defaulting on their mortgage payments. This also had an knock on effect on the estate agents in Javea. Property is starting to sell in quantity again.

Spain was once seen as a safe country to invest in. The global financial crisis has had a large effect in Spain. An Estate agent in Javea is reporting that things seem to be changing and Spain is now being thought of less as a risk and a place where you are going to be able to grab a bargain.

Prices of property have fallen so much in the Costa Blanca, and over development means you can easily grab a bargain. Prices can be over 50% less than they were a few years ago.

Rural Locations have also seen a reduction in property prices as there has been less demand from Spanish people and holiday home buyers wanting Villas and finca’s. With the pound falling against the Euro it has become increasingly difficult for people to buy second homes. Hence prices have dropped.

In the major cities of Barcelona and Madrid where most of the employment is, there is still a huge demand for housing. These cities still have some of the most expensive and sought after property in Europe. This looks set to continue. The Balearic Islands are another area of Spain that has not seen a huge fall in prices. The reason for this is because of the laws regarding its conservation, the overdeveloping that has been seen in mainland Spain has been happening on the islands.

You can definitely find bargains in mainland Spain. Property buyers that bought at the height of the market are finding it difficult to sell properties that have lost their value and are willing to sell at reduced rates. Lots of sellers are becoming desperate to sell so you may be able to find a good property at a great price. Javea estate agents have some great properties on their books and are well worth a look.

Spanish laws are sometimes different from other EU countries so you need to be aware of all the ins and outs of the law and make sure you hire a reputable lawyer.