Spain tipped for long-term gains

Spain is going to be a very good place to invest in property soon - but only for those looking to the long term, an expert has said.

Commenting on the situation in the country, spokesperson for the Spanish Property Owners Guild Paul Bradley noted that prices are still falling due to an oversupply of new build properties and a lack of mortgage finance.

However, he commented, for cash buyers the prospects are good, stating: "There are lots of distressed properties around that can be bought at a 30 per cent discount on current values."

Mr Bradley forecasted the market would bottom out by the end of 2009, but said it would be another five years before the finance to fund new developments arises, making Spanish property a longer term investment.

Spanish real estate market statistics provider Tinsa revealed this month that the year to July saw a 9.2 per cent fall in prices in Spain, with values on the Mediterranean Coast dropping by 10.9 per cent.

Like this? Then share with your friends and colleagues!