With one of the largest booms in residential real estate in the past decade, Spain has also seen one of the sharpest drops over the past year. While for many this is definitely not good news, for buyers it presents an abundance of inexpensive properties that are available, particularly in the popular holiday destinations along the Mediterranean coast.
With the boom in property purchases in Spain came a boom of new housing. With the slowdown, all that new construction is now available for unheard of prices. The Institute of Construction Technology and some of the country’s leading banks estimate that the housing that is now available and that will be completed in 2009 could take years to sell off. Most estimates indicate a million or more unsold Spanish homes, most of which are along the coast. British investors have been one of the prime targets for sellers of these homes. With the recession that has hit the country hard the number of buyers has dropped considerably.
With long lead times and lots of bureaucracy to negotiate, the time frame for new construction in Spain can be long. That means that there were plenty of new homes completed in 2008, with more on the way in 2009, despite the absence of buyers. New homes for 2009 are estimated to come in around 300,000, which will be a 50% drop from 2008. 2010 should see a small drop as the market comes back into balance.
With all the new homes available, there are plenty of deals and bargains available. Just find the right place and make an offer.
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