Apart from the fact that the property marked is at its lowest on a world wide scale, a surplus stock of newly built properties and the bad publicity received in the course of these last three to four years have made buyers and investors very wary of buying Spanish properties at the moment. There is a huge stock of properties available on the market and at present very few buyers, therefore anyone wanting to sell is forced to reduce the price substantially.
Of course some sellers, probably those not bothered as to when they might sell their property, are unwilling to lower their prices but they will certainly attract very few viewers and even less real buyers. In other words the only buyers are around at the moment are those who intend to make the most of the recession to buy cheap in the hope to make a killing when the market recovers. Therefore common sense dictates that if you do not need to sell, do not do it; wait until the market recovers and save your investment for yourself and not others. It will recover eventually as it did the last time there was a recession.
There have been articles recently in the English Press warning that some of the big Spanish construction companies may be near to bankruptcy and are going into bankruptcy. If some of these big companies really do go under, this will inevitably increase the stock of newly built or nearly built properties available with the result that there would be even more pressure on the downwards trend of prices.
It is a buyersÂ’ market what is bad news for those who cannot afford to keep their properties is excellent news for those who have the cash available.
If you are buying, it is advisable to get an independent valuation for your own benefit only, do not accept anybodyÂ’s opinion or advice and make sure that no wool is pulled over your eyes. And again, we cannot stress enough the fact that you must use your own independent lawyer and not one recommended by an estate agent or other interested party. Do not just accept offers or sign contracts before you are sure of your facts.
It is hoped that this recessionary stage in property may take anything between two to years to recover. It is hard to say if there will be another boom as the one we experienced a few years after the last recession, however it is certain that when recovery has take place prices will be up again if only because of the Retail Price Index.
In conclusion, the final word is that if you do not need to sell right now, do not do it. But if you want a holiday home in sunny Spain or wish to move to Spain this is the right time to buy.