Spain popular among distressed buyers, survey finds

There has been a sharp rise in the number of real estate buyers looking to take advantage of the distressed property market, it has been suggested.

According to the result of a Royal Institution of Chartered Surveyors (Rics) survey, there is likely to be an increase in the number of foreclosed homes being sold.

In particular, the body highlighted that Spain was a popular destination for distressed property buyers, along with debt-troubled Ireland and Portugal.

Rics also found that, in 20 of the 25 countries polled, there was interest from specialist funds looking to acquire distressed property assets, with Ireland and Spain receiving the biggest growth in interest.

Oliver Gilmartin, Rics senior economist, said that there was a belief that bank lending was likely to become less lenient and many are concerned about the size of their "property loan books".

"Significantly, specialist investors appear to be showing increasing interest in distressed property listings. However, ultimately banks hold the keys as to how the market for distressed property listings will evolve in the coming year," he added.

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