Buyers spoilt for choice with cheap property in SpainThe Euro crisis, the struggling Spanish economy and the credit downgrading of 16 of the country’s top banks may have worried many people thinking of buying property in Spain. However, due to an oversupply of homes, prices of property in Spain have rarely been as competitive.
If you’re thinking of buying a home in Spain, now could be the perfect time. Keep reading to learn more.
Weak euro and over supply of homes makes Spanish property cheaper
One of the main reasons why it is worth considering buying a Spanish property now is thanks to the relative strength of the pound against the Euro. If you’re buying in pounds, a ?100,000 Costa apartment now costs around £80,000 compared to £92,000 last summer.
And, with many banks and individuals looking to offload property, it is possible to negotiate a real bargain in the country.
Spanish property lawyer Jonathan Ogley told AOL that ‘for those wanting to get out of Spain completely or who increasingly feel stuck, some hard decisions will have to be made - including kissing goodbye to much of the cash you may have invested in your property.’
If you’re buying a property, you are therefore in a position of strength to negotiate a great deal.
Spain also seeing rising rental yields
Another great reason to buy property in Spain is to take advantage of rising rental yields. Official figures from the Spanish National Statistics Institute show that April 2012 saw a year-on-year increase in Spanish property rents of 0.7 per cent.
Catalonia benefited from the largest rent rise in April 2012, with an increase of 1.4 per cent recorded in the region. Asturias and the Basque Country both saw rental growth rates of 1.2 per cent.
Rising rents have been attributed to a high demand for homes. Assetz News reports that ‘the tough economic climate and Spain's unemployment problems have forced many people to rent rather than purchase homes.’