Spanish market 'will recover'

Those thinking of purchasing a property in Spain may be encouraged to learn that experts believe that the market will recover.

Despite a dip due to the credit crunch and an over abundance of Spanish properties and shortage of buyers, it is believed that the balance will return and prices will begin to rise again, according to the Telegraph.

Now may be an excellent time to invest in property in Spain as developers may be willing to sell for as much as 30 to 50 per cent below the asking price.

Brennon Nicholas, a local property industry professional, commented: "We believe the market will come back in the next two years … If we can get the credit crunch out of the way, there are a lot of positive things happening on the coast."

A UK-based private equity firm Benson Elliot Capital Management has recently bought 70 per cent of a Spanish development company in order to take advantage of the drop in the price of real estate in the country.