The Kyero Q3 Spanish House Price Index has just been released and it isn’t good news…In fact it is another blow for those owners and developers who have Spanish property on their hands and need to sell. This is because over the last 12 months, the average asking price of Spanish property has again plummeted from €267K to €244k.
Yet another 8.5% reduction that rubs salt in the wounds of those hoping for some sign of an upturn in Spain.
The upturn certainly hasn’t arrived yet, however this has not stopped a large number of investors and buyers from the colder climbs of Europe rushing in to snap up properties on the Spanish Costas while they still can.
I can’t say I blame them either. If someone offered me a property in somewhere like Marbella with a 70% discount, I would be on the plane faster than you can say Easy Jet.
This is what is happening now in Spain and unlike some of the other struggling countries in Europe who are still feeling the effects of economic instability, Spain will always have its year round climate and the tourists who arrive every year for their holidays.
I was talking to one of my Irish friends Fergus over the weekend and when I asked how much it would be to buy a property with a sea view in Ireland he said, “How much? In these parts we offer to buy each other properties so that we can get change for the bus fare out of here.”
It is an interesting contrast with the mood in Spain where there has rarely been so much interest from investors. Of course Ireland is a very different kind of market to the one you will find in Spain and it doesn’t have the bonus of year round sunshine and warm weather.
The real draw for those investors when it comes to Spanish property is not only the discounted prices, but also the lower risks involved. Any investor knows that buying property on the Spanish coast is as much a lifestyle choice as it is a long term investment.
Those investors also know that at such low prices and big discounts, the outside risk that economic volatility will take its toll in Spain is mitigated. Yes Spain is still in a recession and yes its house prices continue to fall, however they can only fall so far.
In the long term, London aside, Spanish property at a 70% discount is still the number one choice in the struggling EU.
Do you think Spanish property is a good investment? Please leave your comments below.