Spanish property discounts available

Country:  Other Spanish Places, Spain; Spain

17 June 2008

With a number of Spanish estate agents reporting that Spanish properties can currently be purchased for significantly under the asking price, now appears to be a good time to buy property for sale in Spain.

A spokesperson for Costa del Sol-based estate agent Brennon Nicholas said: “Good Spanish properties can currently be acquired for as little as 70% of the asking price.”

Yet despite the Spanish housing downturn there are signs that the Spanish property market could be entering a long road to recovery, a view supported by a major property fund.

In a display of confidence in the recovery of the Spanish property market, property fund Benson Elliot Capital Management (BECM) has agreed to buy a 70% stake in Spanish developer Promobuilding SL. The acquisition will provide the Spanish firm with approximately €500m (around £397m) in capital to invest in Spanish property.

Marc Mogull, managing partner at Benson Elliot, commented: “With an excess of housing in Spain and not enough buyers, prices are low and the climate ripe for the company to pick up cheap property investments. We have the same outlook on the Spanish market and determination to create a leading platform that can make the most of the many distressed opportunities we are seeing in the Spanish housing market today.”