On the face of it the latest figures from the National Institute of Statistics make poor reading. Year on year to the end of June prices dropped an average of 26%. New properties fell 18% and re-sale real estate was down 33%.
But the figures show that the rate of decline is slowing leading some to believe that the real estate market is starting to bottom out. The June figures are marginally better than May when average prices fell 33% year on year.
And according to the Spanish Property Owners Guild there are bargain apartments and villas to be had and plots of land in abundance at good prices for self builders. The organisation points out that two bedroom apartments on the Costa del Sol can be found for €126,000 and inland in places like Granada starting prices for apartments in good locations next to golf courses can be found for €89,000 and it expects prices to continue falling this year.
Spokesman Paul Bradley said demand for luxury property in Spain is set to increase in the coming months as prices keep falling. He believes that wealthy real estate investors will begin to return to the market to take advantage of low prices.
These buyers are likely to be investors who are making a long term commitment as they are unlikely to make an quick returns as prices in the Spanish market are not expected to start rising again for several years.
'Completions for top end second-hand properties continue to plod on with prices now at the bottom and remaining stagnant and the wealthy seek to take advantage,' said Bradley.
