Spanish Property Market Reviving with Foreign Buyers

The Spanish property market has never lost its appeal. The reigning factors of sun, long stretches of sandy beaches and a freedom of lifestyle never failed to entice. The singular issue over recent years simply began with an epidemic of over-financing (high mortgages given by the banks with high interest rates on high-priced properties). When the shocking taste of reality hit home to devastating effect, potential purchasers worldwide were reticent to leave themselves open to similar experience in a now turbulent market. 

Obviously Spain's domestic financial crisis further strained the situation with many Spanish unemployed also no longer able to honour their financial obligations.

But this does not mean that properties were not secured. It only means that the boom years pre-2007 were not sustained. Over-supply and over-pricing needed to be addressed. And it took time. (The domestic Spanish market still licks its wounds having trained and invested their efforts in meeting a property and tourism demand that significantly decreased.) However, decline in property prices slowed in 2013 with Madrid, Balearics and the Canary Islands all registering an increase in 2014. The same is soon expected from the Mediterranean Coast. 

The College of Property Registrars states that citizens from the UK, Russia and France are those buying the majority if properties in Spain at the moment. But the international market also includes many purchases from Belgians, Germans, Norwegians and the Swedish. In addition international investment funds have been seen to sweep in over the past 12 months, taking advantage of previously derelict developments, restructuring them and bringing them back to market at a fraction of their original price.

For those who have waited with baited breath, this truly is the time to consider a Spanish property investment.

For more information on identifying a solid international property investment with the potential to reward throughout a turbulent market, please speak to a professional Dawson's representative. We know what makes a good property.