The cause of the Spanish economic crisis is often and accurately attributed to the real estate boom. Between 1995 and 2007, the country experienced unprecedented appreciation in their growing real estate market. With access to easy credit and loans, construction companies began erecting new residential communities at a record pace. And housing prices rose by an incredible 201 percent during this period.
In 2007, the speculative bubble finally burst and home prices plunged. In some regions of the country, homes lost a third of their value in a single year. The crisis was compounded by the fact that there was a glut in the housing market and construction and real estate companies had millions of unsold homes that were literally collecting dust.
Is now the time to buy villas in spain ? Spain has always been one of the most popular destinations for UK residents. In fact, the housing bubble was actually encouraged by foreign investment, and many of the investors hailed from the UK. Why do tourists from the UK love Spain?
Well, for one thing it is relatively close. Not to mention the fact that real estate prices were reasonable until the bubble got too big. But buying during a crash can be quite risky? This is especially true of people who do not reside in the country. After all, most of the information on the housing market will be second-hand where sellers try to paint a prepossessing picture.
What to do? Learn everything you can about the Spanish real estate market on the internet. Research the steps a foreigner must take to purchase a property. Do not simply look for good deals. This is a common mistake of foreign buyers and they often end up with properties that are located in an undesirable part of the country that is home to thousands of unsold abodes.
