This is largely due to the fact that the sector is predominately cash driven, due to the lack of lending in the banking sector. However, Nick Stuart, director of Spanish Hot Properties, claims that people should still look on the bright side. "Every time something positive is reported about the Spanish property market, observers are quick to pooh-pooh assuming it’s fantasy," he said. Nonetheless, there are parts of the market that are performing well during the current crisis.
"Bahia de Banus is one of the most desirable products on the market right now - gym, sauna, indoor and outdoor pools, close to the marina – and the cheapest property is selling for comfortably over €600,000 (approximately £519,319)," Mr Stuart claims. "A three bedroom repossession recently came to the market and was bought within days for €370,000 (approximately £320,246).”
What's more, there are plenty of opportunities to make money on the right property. Mr Stuart elucidated that on a Bahia de Banus unit, for example, people can either sell on a home within three months at a reasonable price or let it out. Selling on instantly can yield up to a 20 per cent profit, while letting a property for two or three years can give an investor an income of approximately €50,000 (£43,276) per annum. This creates the potential for earning up to 100 per cent profit upon sale and also gives the market at large time to turn its fortunes around.