Time to buy in Spain?

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While there has been plenty of
apocalyptic coverage of the Spanish property market over recent years, new
figures show that the decline in property prices is perhaps less severe than
many think.

A new report shows that prices
for property in Spain fell by just 4 per cent in 2011 and while the downward
trend may continue in 2012, a levelling off of supply and demand is likely to
result in stabilising prices.

House prices in Spain fell just 4 per cent in 2011

The figures from Sociedad de
Tasacion show the average cost of a new house was €213,840 (£176,490) in 2011
and that with 81,000 properties being built during the 12-month period.
Barcelona had the most expensive property, while the lowest prices were in
Murcia.

Although the property
organisation believes this downward trend for house values will continue in
2012, it has suggested the balance between demand and supply will improve in
the coming year.  This is because
the number of available residences will begin to match the needs of buyers
following a chronic oversupply in recent years.

However, figures published by the
Royal Institution of Chartered Surveyors (RICS) in November indicated that real
estate agents in Spain believe the supply of distressed properties will
continue to rise as a result of the eurozone crisis.

Quality buyers in big demand with Spanish banks

Other property experts believe
that there are bargains to be had for ‘quality buyers’ in Spain thanks to the
incentives being offered by banks to offload property assets from their balance
sheets.

Nick Marr, director of Homes Go
Fast, said: “Spanish banks have huge numbers of distressed properties on their
books and are desperate to sell these to foreign buyers.  Consequently, they are offering
excellent mortgage rates and terms to so-called ‘quality buyers’ in order to
encourage them to take the homes off their hands.”