Significant price drops could tempt Spanish investors

Investors could take advantage as the price of property in Spain looks set to fall, according to a source.

Property Wire suggests that a report by property consultants claims a drop of at least 23 per cent is required to bring about a recovery in the real estate market, with prices needing to fall even lower for second homes because they are seen as a luxury.

Aguirre Newman property consultants also suggested that investors may look to exploit rental income on their property, with more people potentially looking to rent in the country if prices do not fall.

There are currently an estimated one million new homes unsold in Spain as buyers struggle to obtain mortgages from the country's banks, meaning cash-ready investors could be well placed to take advantage.

According to First Class Mallorca's Ken Walker, investors looking to rent out property in Spain should consider properties close to the beach, which he said offer "a wealth of amenities" that make them attractive for family holidays.