Insurance News Archive

'Wait a year,' potential investors in Spain urged

Investors looking to purchase a property in Spain should wait a year, it has been advised.

Paul Bradley, a spokesman at the Spanish Property Owners Guild (SPOG), said property values in the country will continue to fall this year, a trend that is likely to continue into 2009.

He said a two-bed apartment currently costs 130,000 euros (£103,260) but these prices are likely to come down another 20 to 30 per cent before bottoming out.

For this reason, it is suggested investors should wait at least a year before "even bothering to look" for a property.

Mr Bradley added: "Whatever the trigger for buying, take the proper long-term financial advice, think about the practicalities of growing old and having less mobility, don't burn your boats totally and don't do anything without a lawyer."

A recent survey by Jet-to-Let magazine revealed Spain dropped from 2nd to 3rd in the buyer's list of top destinations for 2008.

It claimed this reflects a fall in confidence due to changes in market conditions.

28 May 2008