The rent has bent the Spanish property market

Selling a property in Spain amidst the downpour of the global financial storm seems a far better proposal than renting the property out, & there lies a problem with the market according to leading analysts.

The Spanish property market has gone from the rack to the gallows & property prices in Spain are a shadow of their former selves. What is needed now is intensive care.

Fedea, a leading group of economists have identified that the strict rental legislation is preventing landlords & tenants from striking deals that are mutually beneficial, e.g. shorter rental terms than the current obligatory 5 years.

Many owners are opting to sell, rendering the market swollen with a mass of unsold properties. Given the high unemployment rate in Spain, especially amongst the young, some 65% of which opt to live at home with their parents, the market is unattainable for most.

Investors need to wait for a change in the law, after which buying a property in Spain for the purposes of renting out, could prove to be an attractive proposition.