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Property for Sale in Spain So what can we expect to see happening in 2009? Experts predict that lower interest rates in Europe will helping stimulate the Spanish and other European property markets. With lower interest rates and greater governmental pressure on banks to increase domestic lending, property markets will begin to pick up again and people will once again be able to finance their dream home in Spain. Spain has also reasserted itself as a popular holiday destination, which will help the country's holiday rental market a great deal. There's also been a growth in the number of people looking to buy in emerging markets outside Spain, which has led to a glut of unsold properties on the Spanish costas. However, recently, flights to a number of emerging European destinations have been cancelled and suddenly these countries are no longer looking like such a good place for property investment. What about Spanish property prices? In the meantime, property prices in Spain have dropped to try and clear the number of unsold new homes, so people are now using this as an opportunity to snap up a bargain, and this will continue in 2009. Housing minister, Beatriz Corredor has said that forecasts by international and national organisations, as well as the government, point to an economic and property sector recovery beginning in the second half of 2009. Many property experts are urging people to buy now while prices are lower, so they can then make money on their property over the long term as the market begins to stabilise again. Ms Corredor also stated it is currently a good time to buy in Spain because the supply of property is plentiful, meaning purchasers are in a position to find a bargain. Are there Spanish property bargains out there? A new and exciting opportunity has therefore arisen for buyers in the form of distressed sales, where properties are being sold for approximately 10-30% under the current market values. Investors' circumstances can change before completion and they may find themselves in the position where they do not have the finances to complete their purchase and are faced with a choice of either selling their property for far less than the market value or having it repossessed by the developer and losing their 30% deposit. Insight Spain is uniquely placed to offer buyers a large selection of distressed sale properties for sale under market values, and remember that Spanish mortgages are loaned as a percentage of property value not sales price, so the possibility of 80-100% finance may be an option. Why do people continue to buy property in Spain? Whatever the changing economic circumstances, the underlying reasons why foreign buyers love Spain remain the same. The year-round sunshine, easy going lifestyle and comparatively lower cost of living are still strong pull factors. The climate alone makes it one of the preferred destinations with over 300 days of sunshine every year and average temperatures between 18° and 30° C. With more than 4,000km of coastline and some of the cleanest and most beautiful beaches in Europe, Spain offers everything, from spectacular landscapes to rocky coves, from mountains to plains and from lush green forest to orange and lemon groves, Spain has it all. In addition, many people who are looking to retire abroad realise that emerging destinations may not have the same quality of healthcare or family culture they see Spain offering them. Given all this and low interest rates and uncertainty in the stock market, it is difficult to see where else people would look to invest. See our latest Costa del Sol Bargain Properties
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