Agents say Spain's zero growth is good for investorsSpain's property market will not grow in 2012, the Fitch ratings agency has predicted. The country's GDP growth is forecast at zero per cent, with Fitch adding that any growth will be limited to the long term, but agents are confident that the country's continuing debt crisis remains good news for investors.
With property prices declining by 8.9 per cent in the third quarter of last year, according to the recent Scotiabank report, houses in Spain are now over a quarter cheaper than in 2007. This represents a market full of bargains for foreign buyers, boosted by the government's decision at the beginning of the year to reinstate 2011's reduction in VAT.
While Spanish officials have since announced plans to raise income taxes to encourage economic growth, at the moment VAT remains 50 per cent cheaper for new homes, with a stamp duty of 1.2 per cent.
Sergio Bolivar from CSF Property comments:
"This means that a person who buys a new property worth ?200,000 will save ?5,600 compared to buying a second hand one. Even with the European climate the way it is, now is a great time for investors to pick up affordable Spanish property.
Bolivar adds: "In the last month we have helped clients save 1000s of Euros when buying a property in Spain."