Spanish Investment Property Market In 2006
Recent speculation from some property experts has suggested that
the Spanish property market could see some decline in the very
near future.
While for investors that have already bought their Spanish
investment property and are looking to sell soon for a profit
this may be less than desirable news, though overall for new
buyers this is very good news indeed.
The reason is that when property prices start declining in any
country the buyers are in more of a position of control and
selection over the properties they buy and also the asking price
becomes more negotiable.
While in the past where prices have continued to sky rocket in
popular areas of Spain, it has generally been the sellers who
were at an advantage and were able to sell up for guaranteed
profits.
Because of these market changes you will find that the buyers
looking to invest longer term will benefit greatly, especially
with some of the bargains they will find in the coming months.
Spanish investment property in 2006 is looking up for the longer
term investor as prices are estimated to drop by as much as 10%
next year due to slightly less demand but the continued new
developments being built.
While this is not ideal for developers in Spain, this is great
news for anyone looking to invest in the ever popular Spanish
off-plan property market.
Spanish investment property seems like it will clearly need a
more long-term strategy for the investor, as a drop in prices
will mean less chance of an investor selling for profit in the
near future.
By investing long term though rentals and property prices are
expected to grow steadily in the future meaning that buying now
at a lower price could have major returns in the future.
The speculation of property price drops in Spain is also likely
to cause investors to hold off buying for a few months to see if
they can find some good bargains. As more sellers find it
difficult to sell their property due to caution in the market,
its likely that buyers will be able to find themselves some
really good deals by waiting and holding back over the next few
months.
Many people will likely be dropping their prices to make sure
they will sell their property in a slowing market, which means
the buyer will have the upper hand in negotiating with sellers
or developers.
Two top property companies in Spain are advising buyers to make
their bids between five and ten percent below the current asking
price, therefore investors who are willing to bide their time
can make some very smart purchases in 2006.