Distressed Spanish property 'presents investors with an opportunity'

One of the best opportunities for investors who want to get into the Spanish real estate market can be found in the country's inventory of distressed properties.

This is the opinion of Jon Ainge, director of International Property Success, who explained tighter lending criteria have made it more difficult for buyers to fund their purchases.

However, he pointed out banks are willing to provide mortgages on distressed properties in Spain as they attempt to reduce their exposure to the real estate sector.

"If banks currently finance a development they are keen to deleverage themselves of the current risk they hold - this is where you will find that most loans are now being issued in countries such as Spain," Mr Ainge stated.

According to the Royal Institution of Chartered Surveyors' Global Distressed Property Monitor, which was published earlier this month, there was greater demand for this asset class in the final quarter of 2011 than in the previous three-month period.

In Spain, the number of new distressed homes coming on to the market between January and March 2012 was expected to be roughly the same as that recorded in the previous three months.
 

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