Basically the media are in a frenzy over the fact that a Spanish construction company's share price has dropped by 5%. The Telegraph is predicting a collapse, then an implosion:
Read the article
Britons thinking about buying property abroad were told yesterday that the
predicted collapse of the Spanish housing market would create a golden opportunity to pick up a bargain.
But there was little comfort for the many who have already bought homes in Spain. More than 250,000 properties along the Costa del Sol and the Costa Blanca are British owned.
"The housing market in Spain is about to implode," economists at Lombard Street Research warned yesterday
Loving this language. Are we all going to be squashed?
For buyers like myself these scare stories are great. Vendors reduce prices, many buyers are frightened away from the market. Supply - Demand. Bargain. In theory anyway.
Whilst there is an oversupply of housing product in Southern Spain, and much of it is overpriced, the demand is still present and constant for good value, good quality housing. Yes, buyers are more picky, they have more choice! But there are still plenty of them flowing over from the UK looking for a holiday home or a place to live.
No one has bought for a quick investment return in Spain for years, the market has matured beyond that point now. Go see Morocco, Turkey or Brazil for those "buy to flip" returns. Spain is a place to buy if your investment strategy is all about enjoying long summers, cold beers and not caring much about share prices.