The not so property pain in Spain

10 June 2008

Much is publicised about the so called diminishing second home and property investment market in Spain, land grab, falling prices and over supply are some of the phrases we hear every day.

No doubt the boom on the Costa’s is wavering but the experts say that UK buyers are still grabbing the bargains inland and in the ‘not so tourist’ spots. With the UK property market becoming more and more out of reach for some Brits, second home seekers and investors with money to spend are looking to Spain to fulfil the dream.

Predictions are that due to reserved spending by the locals, the property market will recover fast alongside the stabilising of the Euro and will retain its allure as a buyers market. Renting is a popular way of life in Spain, unlike the UK, and with its close proximity to the UK and availability of low cost flights, Spain will continue to lure the independent traveller.

Internet statistics suggest that at least ten percent of people looking to buy overseas property are heading for Spain, almost twice as much as some of its neighbouring European countries, this is not the sign of a diminishing overseas property market and news is it’s ripe for investment.

Murcia remains a popular favourite alongside some of the more remote and less built up parts of inland Spain, with this year’s reduction in Capital Gains Tax payable on a property in Spain these changes are an added incentive to an already lucrative well established market.

With lenders in the UK shying away from competitive lending rates and withdrawing good value products from their portfolio, the European banks are cashing in on the opportunity and luring the investors, despite the doom and gloom there is money to be borrowed and bargains to be had.