Spanish Property - Look before you leap into a cheap Spanish property deal

The country's banks have many bargains but there could be a reason for the price

writes Chiara Cavaglieri

Sunday 17 June 2012

 

"Spain is relying on a €100bn (£81bn) bailout to keep the economy afloat but the banks are still desperate to offload the glut of new and repossessed homes from their books. Spanish banks are now the country's biggest but most reluctant estate agents and although investing in the the property market today may seem foolhardy, with a backlog to shift, prices have crashed.

The Spanish know we're suckers for a bargain and with grey skies all around the UK, you'd be forgiven for jumping in head first. ......With bargain basement prices on offer, heads will turn, but is it really a good time to buy in España?

According to Madrid-based property consultants Acuña & Asociados, there are around two million re-sale, ready-built and partially complete properties on the market, of which an estimated 11 to 17 per cent is owned by the banks. With such an oversupply of property, prices could still have some way to go, so you may want to bide your time for even bigger discounts but either way, don't expect to uncover high-end homes going for a song.

Louise Reynolds, of independent European property agent Property Venture, says while price declines have been more accentuated on the coast, inland prices have held up and are likely to be less volatile.

'If you are buying in a decent area, on a decent development, which is not flooded with other 'me-too' properties nearby, then the price is likely to be more resilient,' she says. 'Places to look for property that will hold its value are near new infrastructure improvements.'

...........Despite setting up their own real estate arms the banks are not necessarily equipped to deal with foreign buyers effectively so you may still have to go through agents. Finance is generally very difficult to obtain in Spain but should be much easier on bank-owned property"

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