Spain property market set for speedy recovery

Tuesday, February 01, 2011

Spain property market set for speedy recovery

The Spain property market is expected to improve quicker than the wider economy, according to German-based property group IVG.

According to a Reuters report, IVG optimistically project that the Spanish property market will start to recover later this year, significantly faster than the wider economy.

Speaking at a news conference in Frankfurt Thomas Beyerle, the head of IVG's corporate social responsibility and research commented: “Theoretically, the real estate market always follows in the steps of the wider economy, with a delay of around 18 months.

“But with Spain it is likely that we will see a case of reverse psychology.”

IVG's forecast comes as a surprise given the poor state of the Spain property sector, which is suffering from an oversupply of homes, weaker demand, a high volume of repossessions, and a struggling Spanish economy.

Although plummeting Spain property values is attracting more bargain hunters, a short term Spain property market recovery is unlikely. However, Spain still remains the most popular holiday home destination for the bulk of Brits actively seeking to buy a home overseas.

To read our guide to buying a property in Spain, click here.


A Place In The Sun