Affordability still the name of the game for Spanish property

The best way to describe Spain's property market? Value for money.

The Spanish property market experienced the largest price falls of any EU nation in the final quarter of 2012, according to figures recently released by the EU’s statistical office, Eurostat.

Competitiveness and affordability came to characterise Spain’s property market at the end of last year, when prices fell by an average of 15.2 per cent – the largest price drop by any EU nation.

The pan-EU average was a 2.5 per cent fall in property prices for the last quarter of 2012. However, the majority of the property markets in the EU attract very little in the way of foreign interest or investment. Hence, prices in these countries tend to be more stable.

Spain, on the other hand, is the most popular destination in Europe for second homes, holiday homes and investment properties, so it is only natural that the market is more exposed to the fluctuations of the wider economy.

A more robust and representative measurement is to compare the market’s performance in the final quarter of last year against 2011. In doing so, the figures show that property was 1.9 per cent cheaper last year than it was in 2011.

Many real estate experts in Spain are united in the belief that the bottom of the market has been reached, or will be reached very shortly in the early part of 2013.

A more mature, transparent and professional approach to buying property in Spain has seen the market make numerous adjustments over the past few months – adjustments that are great news for both buyer and seller.

Value for money, rather than bargain prices or paying over the odds, is now the name of the game in Spain.