Spain's property market is unlikely to grow at all in the near future, the Fitch ratings agency has announced, suggesting a wealth of opportunity for those engaged in overseas property investment.
The firm said that because the Spanish economy is battered, any growth in property values "is unlikely in the short term".
Being one of the major vulnerable eurozone nations, Spain will be battling to avoid recession this year. Its predicted GDP growth rate for 2012 is 0%.
However, Fitch said the Mediterranean country should record 1% growth in 2013, although its earlier forecast had predicted 1.5%.
It pointed out that unless a solution is found to the sovereign debt crisis of European nations, Spain will struggle.
Fitch said: "Banks are unlikely to return to the cheap funding costs that were available to them in the past."
Meanwhile, Scotiabank data shows the average price of a house in Spain sunk 8.9% over the third quarter of 2011, compared with the same period of 2010.
Since 2007 property in Spain has become almost 25% cheaper, it added.
Copyright Press Association 2012
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