Spanish construction is to fall by 25% by the end of this year experts have stated. The global financial crisis caused demand for Spanish property to all-but dry up, meaning a massive over-supply emerged causing prices to fall rapidly.
Developers were forced to continue working on developments that had been started, despite the over-supply. None the less thousands of jobs were lost, as developers cancelled projects in the pipeline, and found it nigh impossible to sell properties already constructed, and impossible to sell off plan.
However, now that development is finally calming down, and prices have fallen almost 30% from their peak, demand is slowly growing, especially when Sterling begins to claw back some ground against the Euro.
The shortening of supply combined should combine with the increasing demand to put a floor below prices next year.
The tide is changing in the field of overseas property; the Brits are once again getting out there and sticking a toe into the water.
You know things are improving when the Times runs a positive story on buying overseas property. The fact that Spain was mentioned several times in the article is evidence that things are also improving for Spain. This makes sense; Spain has always been one of the most popular countries for British holidays, and property buyers, so it is logical that when Brits start buying that Spain will be among the first to benefit.
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