The Rise And Fall And Rise Again Of Property In Spain
In the last few years a lot of buyers have been put off buying property in Spain because of the state of the Spanish economy. There have been quite a few horror stories from people who have bought at the highest point of the market and their property has dropped quite significantly in value.
Getting income from renting has become non-existent for some investors who bought for investment purposes only. Unscrupulous sellers have been a theme in the Spanish property market for a few years which means that sometimes people have been almost forced into making bad decisions they otherwise wouldn’t have taken.
Unfortunately this does happen when a property market becomes as overheated as the Spanish market became.
When property in Spain fell, some people knew that if they waited, the market would rise again. The chances of it rising like it did before the large fall is very small, it probably won’t happen, but rises in the value of property will happen again, and in a more stable way.
At the time of writing, Spain has 20% unemployment, the number of repossessions in the country has been large. No area of Spain has been immune to the crisis.
This crisis has meant that buyers of property now are at a significant advantage compared to what they were 3 years ago or more. Buyers are in the driving seat.
A great place to look for cheap properties in Spain is from banks that repossessed properties from people who lost their jobs. Banks just want to sell these properties and the prices can be below market value very often, so real bargains can be found.
It creates an opportunity for investors in property in Spain. People can snap up bargains quickly if they have the money ready and are willing to look for the right properties in the right places.
Whilst the property market was booming in Spain, investors who were priced out of the market looked towards emerging property markets like Poland or the Czech Republic.
People are moving away from the more younger markets such as Eastern Europe and looking for the bargains they can get in Spain. The country offers opportunities that just weren’t available 5 years ago.
The economic climate has a large impact on property markets. Markets year by year rise and fall and it’s difficult to predict what is going to happen. Not many predicted the credit crunch and who knows what property markets in any country might do.
As the property market grew, so did the money that people made. And as the property in Spain fell, the amount of money people lost grew. Maybe now property will rise again in Spain.
Patrick Martin has been writing about Property in Spain and has a passion for helping people who are thinking of Investing in Property in Spain.
