Now it is the best time to buy real estate in Spain

Experts say that current economical situation in Spain is ideal for purchasing real estate.

According to the statistics of the Ministry of Development, prices for real estate in Spain have been consequently decreasing during the last six years and opportunities for investing in this sphere are becoming more and more beneficial for foreigners. Since now it is high time to purchase real estate for a lower price, it is possible to resell it much more advantageously in a couple of years. Among the purchasers frequently buying real estate on the Mediterranean coast of Spain, there are many German, British, Swedish and Norwegian citizens. American companies show great interest in the sphere of investments. Russian citizens have been actively buying real estate in Spain as well.

According to “Tinsa”, an evaluating company, during the second quarter of 2013 real estate prices have fallen by 10.5% (during the first quarter a decrease of 12.1% was detected). In general, in comparison with the indexes of 2007, the year of market prosperity, now the prices have dropped by 37.1%.

In the meantime, a Spanish agency network called “Fotocasa” in its own investigation came to the conclusion that the official statistics do not coincide with the real indexes and the real estate price fall is even more significant. It can be explained by the fact that, in order to compose the official statistics, the Ministry of Development uses reports of evaluating companies which have their own criteria for price calculation and offers much higher prices than established by the real market. According to “Fotocasa” experts, the difference between prices amounts to about 25%. In particular, “Fotocasa” declares that the prices have fallen by 40.2% in comparison with 2007.

Moreover, an analysis of Spanish real estate market carried out by “The Telegraph” shows that in some coastal areas the prices have fallen by more than 50%. During an interview with the newspaper, experts said that it has never been a better moment to buy real estate in Spain. Potential purchasers can now have the best of the bargain than those who purchased real estate in 2007-2008.

Due to the fall of inner demand and abundant offer in the sphere of real estate, the government of Spain is trying to stimulate foreign investment intake. Within the framework of the new law of entrepreneurs, Spain will offer an opportunity to get residence permits to foreign citizens who have bought real estate on the territory of Spain.