Spain was booming market in the past decade. Since 1998, property prices were going up more than 10 % each year, but in 2007, the Spanish market started to cool and now is in Freefall. Despite the crisis Spain remains one of the most popular places to live and buy property abroad.

City Property

The property is very expensive in the biggest cities of Spain; however, the demand remains stable for prime location property because of high employment. Spanish cities like Barcelona and Madrid are the most expensive with average price of 450,000 EUR for 3-bedroom apartment.  

Coastal Property

Southern Spain attracts many foreign property buyers each year. The summer season is long, winters are mild and some places like Malaga has all year round rental potential.

Spanish property market in 2008

Spanish property prices in some regions are going down sharply. Spain becomes a buyer’s market with increasing number of distressed and repossession sales. It is a market of possibilities for property hunters, ‘Holiday home’ buyers and long-term investors who grab the bargain property.

Advantages of Spain’s real estate market:

• Established rental market;
• One of the most popular tourism countries and destinations for retirement;

Disadvantages of Spain’s real estate market: 

• High property buying costs;
• Overvalued property and oversupply in some regions.