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Spanish price fall to give investors the whip-hand

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One property company has suggested that the Spanish property market could see major falls over the coming few months.

However, far from being a reason to stay away from Spanish properties, the news could provide an important opportunity for potential investors in the region, giving them more control over purchases and price.

Whereas in previous years, as prices have continued to rocket in the popular areas of Spain, it has been a seller's market enabling those looking to sell up to get the most for their money, the changing economic situation will put the bartering power into the hands of the buyer, meaning that there can be some excellent bargains for those investors willing to hang on to their properties.

Tribune Properties believes that prices in Spain could fall by as much as ten per cent next year, as demand starts to drop off while the rate of new properties being built has not slowed, meaning there could be a glut of properties. While this might be disappointing for developers and those looking to sell, for investors looking at the long-term gains of investing in such a popular region, 2006 could offer the perfect opportunity to take advantage of the Spanish property market.

Investing in Spanish property now clearly requires a long-term strategy for investors, as a potential dip in prices would mean it less likely that an investor could buy a property and sell it for a profit in the near future. However, by investing for the long-term, rental yields and property prices are expected to grow steadily in the future, meaning that buying at a low price now could have major returns in the future.

The speculation surrounding a potential fall in prices is also likely to see more investors waiting on the sidelines for a few months to see if they can bag a bargain. As more sellers find it harder to get rid of their property because of the growing caution in the market, it is likely that investors will be able to find themselves some very good deals by biding their time. Many people are likely to drop their prices in an effort to sell on a slowing market, which means investors will often have the whip-hand in negotiating their investments.

Tribune Property is advising investors to make an initial bid of between five and ten per cent under the asking price, highlighting the bargains that can be found if investors are willing to play a patient game.

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