Spain is the original second home destination and offers something for every type of buyer - retirees, investors, holiday home-owners, young immigrants. Despite a property market that is cooling in some areas, do a bit of research and you’ll find untapped areas where affordable property is waiting to be snapped up.
According to Reuters, the fall in Spanish home sales accelerated in the final quarter of 2008, reflecting a collapsing property sector that has helped tip the fourth-largest euro zone economy into recession. Some 113,274 homes were bought and sold in the fourth quarter, down 13.5 % from 130,884 in the third, Spain's College of Registrars said.
For the year, 561,420 sales were registered, down 28.8 percent from 2007. The average value of Spanish mortgages declined for a fourth consecutive quarter, falling 1.84 % year on year to 136,148 euros ($174,400), the college said.Average mortgage values fell 6 percent in 2008, it said.
Figures from Spain's National Statistics Institute published last month showed mortgage lending fell 23 percent in November compared to a year earlier, reflecting both weaker demand and tighter bank lending.
According to Reuters most analysts say Spanish house prices will fall by up to 30 percent from their highs, though some see greater declines as possible as the end of a decade-long residential construction boom coincides with credit market turmoil.
Consequently, there is a huge stock of unsold property for sale, and newly completed property - a legacy of the boom years of 2005 and 2006 when more than 850,000 starts were given the go ahead - coming onto the market.
Accordingl to Mark Stucklin head of spanishpropertyinsight.com in some areas the market has been almost completely wiped out, particularly in coastal areas with a lot of holiday homes; regions popular with British buyers such as The Vega Baja in the south Costa Blanca, which includes towns like Torrevieja and Catral.
'Procosta - the developer's association of the Vega Baja region - has said that sales in the region are down by 80 per cent. Brits have been turned off Spain by stories of corruption scandals, demolition threats, land grabs, and unease about the market and prices. Now the exchange rate is doing its bit to turn British buyers away.'
The pound fell by around 15 % against the Euro in the last quarter of 2008 but there are signs of recovery, depending on which reports you check. However, in today's economic climes few things are certain.
For some would-be second homebuyers in Spain, the strength of the euro is the final straw. But not everyone sees it that way. Some estate agents, being ever the optimists, claim that now - when the market is falling - is actually the time to buy in order to get the best deals.
You can now search for your very own dream overseas property on aplaceinthesun.com
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Amanda Lamb is on her travels finding you the ideal location for your new house
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