Soaking up the excess in Spain

A recent report reveals that the number of planning approvals in Spain has fallen from 600,000 to just 100,000 over the past two years. This is aimed at directing those looking for property to buy in Spain towards the mass of over produced projects swamping the market, instead of new build projects.

Those who are selling a property in Spain, or at least are trying to, are likely to experience greater difficulties and suffer further loss to the value of their property, according to a real estate consultancy, based in Valencia.

Recent figures indicate that since 2007 property prices in Spain have only fallen by around 25%. With many banks clutching fistfuls of repossessed properties, property values remain too high as they over inflate market prices to minimise their loss. Further price falls seem inevitable.

The market place is sobering up and the opportunity here is for the cash ready, long term investor, who realises that there may be further market adjustment in values, and that individual vendors are a better prospect than the banks to obtain value for money.