The Spanish property market crash has seen prices plummet nationwide in recent years, with homes in some parts of the country now available to buy at a fraction of their 2007 peak market value. But until now, many would-be purchasers, including investors, have avoided buying property in Spain due to the weak state of the market.
But finally, after six years of price falls, the residential property market in Spain appears to have finally reached the bottom of the downturn and now looks to be ripe for investment, according to the head of CBRE in Spain.
The headline of an article in the business section of Spanish newspaper El Mundo, as cited by Spanish Property Insight, read: “CBRE: el mercadoinmobiliarioespañol ha tocadofondo” or in English “the Spanish housing market has touched bottom”.
“The arrival of big investors like Goldman Sachs and Blackstone buying large portfolios shows that the Spanish property market has touched bottom and now is the moment to invest,” says Alfonso Galobart, head of CBRE Spain, quoted in El Mundo. “Spain, as a country, no longer has the risks it had five years ago, and that makes it much more attractive.”
According to CBRE, retail commercial property has been the most sought after in 2013, whilst “strong growth in tourism in 2013” has favoured the recovery of the property sector linked to tourism. They expect this to continue in 2014, especially in coastal areas and the islands.
Despite the overall glut of properties in Spain for sale, Galobart believes that the price of property in prime areas “has finished its adjustment”.
He continued: “In cities like Madrid, San Sebastian, on the La Rioja region, we expect modest house price increases, although this will depend on an improvement in the economy.”
Spanish Property Insight’s Mark Stucklin said: “CBRE, an international property consultancy, forecast that Spain will attract 4 billion Euros in real estate investment from abroad this year, back to levels last seen in 2004, before the crisis.”
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