Spanish property market tipped for improvement

A representative of a Spanish property firm has said the market in the country is close to the bottom.

Director of Iberian International Laura Nicoll argued that the situation is close to turning, with new price growth set to result from the low level of construction currently taking place.

There will be an "inevitable supply shortage in the coming years", she claimed, arguing that this will inflate Spanish property values as a result.

However, at present prices are falling and likely to go on doing so by ten per cent this year, Spain's second largest bank BBVA has predicted.

While those buying property in Spain may gain if Ms Nicoll is correct, further price falls could mean more bargains for investors.

Recently-produced figures from foreign exchange firm Currency Index stated that two-bedroom flats on the Costas have seen their prices drop by an average of 30 per cent since last year.