Spain Defies the Odds

By on February 18, 2013
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Despite fears that a Spanish bailout is imminent, demand for property in the country is soaring.

The financial news coming from Spain has been better; the economy is shrinking, unemployment is growing and the prospect of a bailout is looming. However, foreign investors have proven that they aren’t fair-weather friends of Spain, as they continue to invest in the Spanish property market despite the question marks over its economy.

In fact TheMoveChannel.com claim that enquiries into Spanish real estate have actually increased during these uncertain times, with investors eying up bargains after some significant price falls.

“Uncertainty in the Eurozone may still be high, but the economic climate has actually made Spanish property more affordable than ever,” said Simon Peck of Best Overseas Property. “Prices are now as low as 60 per cent off the market peak. Banks are allowing 100 per cent finance on some developments and with the single currency weakening, exchange rates can save investors a sizeable chunk on their transaction.

” Spain is not the only troubled economy to witness a heightened interest in its property market. Enquiries into Portuguese property increased by 2.77 per cent last month, making it the third most popular destination on TheMoveChannel.com, after Spain and the USA. It is the first time Portugal has rank above France since 2011, which some claim is due to France’s recently approved property taxes that may have put foreign buyers off. Bulgaria also rose by three spaces to take ninth place in TheMoveChannel.com’s Top of the Props, cementing its position as a favourite among investors.

“Official figures have already seen overseas property investment this year reach the highest level since four years ago,” said Peck. “The bottom line is this: if a property is of good enough quality and in a desirable location, buyers are no longer waiting to make a purchase.

”With the 2014 World Cup and the 2016 Olympic Games heading for Brazil, the South American nation is becoming a dominant force in TheMoveChannel.com’s Top of the Props – last month it became the fifth most popular destination for property enquiries.

“The Brazilian real estate sector remains in its infancy with vast scope for growth,” said Dean Thomas, MD of DLT Property International. “UK investors are looking further afield for opportunities and they are turning to Brazil and increasingly Brazilian real estate. As a survey by the Association of Foreign Investors in Real Estate reveals, Brazil will become the second largest real estate investment market in the world in 2012.”

Top of the props

The top ten searched for property destinations on TheMoveChannel.com.

  • Spain
  • USA
  • Portugal
  • France
  • Brazil
  • Italy
  • Turkey
  • Cyprus
  • Bulgaria
  • Greece

Photo credit: lucasfoxbcn / Foter.com / CC BY-NC-ND