Experts warn of double dip in European property markets

Individuals looking to invest in real estate in Europe have been warned that, while many markets look to be making their way out of economic decline, there is the threat of a double dip in the property market.

According to the latest European Housing Market report from Standard and Poor's, the price slump has slowed in the majority of European destinations.

"We're seeing some signs of house price stability across Europe. But a look at individual economies still shows a mixed picture," said Standard and Poor's chief economist in Europe, Jean-Michel Six.

"In those that are likely still overvalued, prices could take a second dip later this year or in early 2011."

Spain still has about 12 per cent of overvalued prices to correct before the market regains long-term equilibrium, the report claims.

The news may be of interest to individuals looking for property for sale in Castille-La Mancha, with the region boasting a rich and diverse history.

Earlier this month, the National Association of Estate Agents International claimed investors should act quickly to take advantage of bargain properties in Spain.

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