Bargain Basement or Armageddon

Just what is going on in the property market in Spain? Is it bargain basement with fun for all, or the end of fun, sun, and you know it, as the day of reckoning clouds the sky?

It is a little like the glass half full or half empty theory, as those who look for bargain properties cautiously dip their toes into the sea of properties flooding the market. Yes, there are bargains to be had as vendors reduce prices and some of them are well worth the asking price, which has often been reduced several times. With the euribor now around 1.6% the average family will also save 310 € a month on their mortgage.

Many of our client ask us about repossessed properties. But with the banks holding such properties until their employees and their families and favorite clients have had first choice, believe me, there is little that is a`bargain´, only dilapidated flats in run down areas. As always, it is location, location, location. This is the key to whether it is a good bargain.

We shall have to see if the day of reckoning has arrived in Spain or not. The boom that had been going on for so long has taken its toll, with an excess of unwanted properties around. According to the ministry of housing the building of new homes for the year April 2008-March 09 was down by 46.5% while the total of properties started before and terminated during this period was down by 15.7%. It is also worth considering that of these figures many of the properties are designated VP which is for public good (similar to council housing) which has seen a rise of 33.4%. So, has the lesson been learnt and will the building stop? We can only hope this is the case as the figures seem to suggest.

Many must also have seen programmes like Paradise lost on ITV UK with the horror stories about Spain. Once again; make sure the property is legal before purchase. Also don´t buy off- plan from a pretty brochure - this must be a no brainer in today´s climate.

So, bargain basement or Armageddon? In the end it is what you make it.