Who Else Wants to Invest in Spanish Property?

If you’re seriously into property investing and using real estate as a means of generating wealth and you’re in the market for a new purchase in 2007, many advisers and analysts will be pointing you in the direction of emerging or exciting hotspots as far afield as Montenegro or Malaysia – but what if you’re in the market for a plain vanilla, short haul, in demand, tried and tested location such as Spain?

Is there any money at all left in the market or has it been bled dry?  Have all the recent scandals affected demand?  Is Spanish property over priced, over hyped and due a negative correction?  Not everyone thinks so; one of our staff members has recently added some Spanish real estate to their portfolio but who else wants to invest in Spanish property?

Well, you know what…time and time again in the surveys that banks, lenders, FX specialists, property companies, estate agencies and market analysts run relating to where in the world investors are buying and second, holiday and retirement home hunters are headed, Spain comes out on top. 

Just look at some of the latest market findings – you have RICS recoding house price inflation of 11% in Spain last year, you have Knight Frank reporting almost a 10% gain in the third quarter of 2006 compared to the same period in 2005 and you have the Association of International Property Professionals planting Spain firmly in the number one spot in terms of demand from British buyers looking overseas for a property purchase.

What does all this tell us?  It tells us that demand remains strong, especially among overseas buyers for property in Spain…however, demand has dwindled recently and that’s a fact.  The Spanish Mortgage Association recently reported that loan requests fell last year and a number of estate agents that we have spoken to in Spain have advised us that homes coming to the market currently are remaining unsold for far longer and buyers are able to negotiate far harder.

So, to answer the question posed, namely – ‘who else wants to invest in Spanish property?’ one could conclude that fewer people do suggesting that the market is heading for a negative correction at best and a nosedive at worst…but such an assumption is actually rather weak and short sighted! 

While many establish property markets around the world are gradually witnessing breaks being applied to both property price growth and the speed of turn around of real estate coming to the market, these issues are being brought about by affordability issues exacerbated by increasing interest rates for example rather than a diminishing demand most of the time…and Spain is no exception, Spain is the norm.

Demand for property in Spain remains high – just ask any UK baby boomer where they dream of having their retirement villa in the sun and they’ll invariably tell you ‘Spain’ – what’s more it is a short haul from the UK and a cheap short haul at that, meaning that it is high on the list of decent destinations for year round holidays.  Demand is broad enough and strong enough to capitalize on therefore…and because currently it is certainly a buyer’s market in Spain because many of those who want to sell up can’t sell up as quickly as they’d like to, investors who move in on Spain now could well be establishing themselves for the longer term in an established marketplace that has many, many years ahead of it in terms of popularity, price growth, demand and income generation potential. 

Who else want to invest in Spanish property?  Maybe me actually…!

Special Reports: Property News for Spain

Spain Investment Property Potential
An examination of the Spanish residential and commercial property markets for investors seeking maximum potential

Spain the Guide for Property Hunters
An overview of Spain and its housing market for potential property buyers

Spain: The Property Buying Process
A detailed breakdown of the essential components of the property buying process in Spain