Distressed Properties for Sale in Spain

For most of the last decade, property for sale in Spain increased in price dramatically; this happened to such an extent that those who invested in Spanish property in the late 90's and early 2000's sometimes saw their property prices double (we even saw some triple) over 10 years.  This led to rampant investment & oversupply of properties in the more touristic parts of the country as well as in major cities such as Madrid and Barcelona. However, this oversupply coupled with the massive price inflation as well as tightening criteria for mortgage lending has seen prices drop drastically over the last 2 years.  No doubt the global credit crunch has forced down the price of properties even further.

Nevertheless, there are many observers who believe that there has been an over-correction on prices caused by the stampede of vendors looking to sell their properties.  Futhermore, the massive amount of property for sale in Spain generally has meant that those looking to buy property in Spain now can often pick up their dream property for a bargain basement price.

Such a "perfect storm" of factors against those looking to sell a property has led to the terms "distressed properties" and "distressed resales" being used to describe some of the Spanish properties for sale from between 25% - 50% their previous valuations.  It is possible that one day in the future investors will look back at this period as being a golden time to invest in Spanish property.  Perhaps panicked vendors will also rue the day they sold their Spanish property for a fraction of its true worth.  Equally, investors who buy now may rue buying property now as the market may fall further still.  It is impossible to say with 100% certainty, but what is undisputable is that we are now seeing cheaper prices than at any other time in the last 5 years at least.

For information on distressed Spanish properties for sale, simply look through our list of property for sale in Spain and make an enquiry!