Only you know when the time is right to buy in Spain

Great lifestyle, climate and properties - is that all you need to know?

The problem with researching the Spanish property market is that most of the ‘experts’ you come across online struggle with impartiality. The majority of sites, agents and companies that write about property in Spain do so because they have a vested interest in the market doing well. On the other hand, the more ‘independent’ sources – chiefly the big media outlets – tend to deal in hyperbole and headlines. Stats are skewed to suit an editorial agenda, and negativity takes centre stage.

It’s like shopping around for a Christmas turkey and asking either the turkeys for their suggestions, or the turkey farmers. Any information you receive is likely to sully your decision.

But you do want a turkey, that much you know.

So if you have always dreamed of owning a property in Spain, only you can possibly know when the right time to buy really is. Because one seismic shift has happened in the Spanish property market since the economic downturn of 2008: investors have developed a Spain-shaped blind spot.

Not property buyers in the most bonafide, traditional sense, but investors. The kinds of speculative buyers who poured millions into the Spanish property market in the hope of making a quick buck. Many did, and were able to get in and out with hefty profits gripped tightly in their unburnt fingers. Some, though, bought at the wrong time and paid over the odds for a property that is now worth a fraction of what they shelled out.

These are the unlucky, often unscrupulous few. Their troubles should not concern you, not any longer. The market has evolved, matured and stabilised, so now you should only buy in Spain for the right reasons – the lifestyle, the brilliant climate, the change of pace, and the chance to enjoy and experience a different culture.

But you still need to conduct important research, and that can prove difficult if you don’t know where to look. So here is a run down of the market as it currently stands, and what that might mean for lifestyle buyers like you.

Are prices rising again?

In a word, yes. In two words, yes, finally. Property prices throughout Spain have been falling month-on-month for the past few years. But a recent report from Spain’s National Statistics Institute showed that prices rose in September by three per cent.

Now in isolation this isn’t all that unusual – some months can experience the occasional, unexplainable mini-resurgence – but it was the second month in a row that this had happened. August also saw sale prices increase, which is the first time in more than 18 months that there had been consecutive increases, and the signs are that October will continue this upward trend.

Confidence is returning to the Spanish property market

Good news for vendors looking to sell their property of course, but how is it good news for prospective buyers? Well, it’s all a matter of confidence – when market conditions pick up, so does activity; so if you were unsure when to buy, the news that prices might now start rising steadily should be enough to kick you into action.

What about the exchange rate?

This always fluctuates, and we’ll probably never again see the days where £135,000 would get you a €200,000 property. But on the other hand, properties that previously cost €200,000 are now selling for approximately €130,000. Which just goes to show that you can never rely on the exchange rate to make the decision for you – if you have the funds and the inclination, the best advice is to just go for it sooner rather than later.

Should you look for ‘distressed’ sales?

It’s a risky game going ‘schadenfreude shopping’. The Costa del Sol has more than its fair share of distressed properties, where vendors have slashed their asking price in order to extricate themselves from a debilitating mortgage. There are a multitude of reasons why this phenomenon is so prevalent on the Costa del Sol, but one of the chief drivers is lack of income.

In the past decade, thousands of expats moved to Spain, bought a home and found work in the belief that this new life in the sun would last forever. Well the sun and the homes are still there, but the work isn’t. So if you are hoping to move to Spain for work, bear this in mind: can you afford a property, even one bought at a distressed price, if you lose your job?

And if you are thinking that these distressed bargains might turn a pretty profit in a few years’ time, think again. Credit rating agency Fitch estimates that Spain has close to a million empty, unsold properties throughout the country; a surplus that could weigh down any price recovery for years to come.

People love living in Spain – that is undeniable – but housing supply still vastly outstrips demand, so until that is rectified, put your profiteering dreams on hold.

Hunt for good value, not bargains

You can buy a cheaper iPad-alternative tablet in plenty of electrical stores. They’re bargains when compared to the real thing. But aside from the initial upfront saving, are you really shopping smart? Will your tablet be supported by the best apps, for example? Or be as reliable, or easily fixed when things go wrong, as they inevitably will? The safer bet is to plump for the iPad or its closest competitor, because in doing so you know you are buying quality.

The same rules apply to the Spanish property market. Those distressed sales are sold below market value often for good reason. Isolated, unkempt or poorly constructed homes will be cheaper, but are they worth the money?

The best advice would be to look for properties that represent good value – properties that are well located, boast good transport connections and a thriving community. Homes that are timelessly stylish and solidly built, with transparent title deeds and happy neighbours. Luckily, there are plenty of these properties on the Costa del Sol, which is one of the most robust property markets in the world.

Remember: Spain is what you make it

Moving to Spain won’t suddenly solve all your problems. If you dream of escaping your life in the UK for fun in the sun, whatever ails or stresses you back home will likely follow you to Spain. The country is not a magic cure for depression, nor a magical land free from work, financial or family pressures.

Marbella may be magic, but life in Spain is what you make it

What it is, though, is a beautiful country with a stunning climate and diverse, rich culture. Its people are passionate, its cities are striking and its beaches are wonderful. It regularly vies with France for top spot on two counts – most popular holiday destination for Brits, and the top pick for overseas property. Currently, Spain is winning on both counts.

Spain’s current economic turmoil cannot be ignored of course, but it should also not put you off. If your decision on whether to buy in Spain rests on finding gainful employment or relying on local income, then perhaps now isn’t the right time. If, however, you can secure a favourable mortgage either at home or in Spain – or buy outright – and want to retire or use your property as a holiday home, then the right time is whenever you’re ready.

It’s that simple. Do your research, shop around, ask the right questions and keep an open mind. But only you know when the time is right to buy in Spain.