Spain continues to attract property buyers from Britain
Ongoing economic difficulties in Spain are not denting the country's appeal among overseas property buyers in the UK, experts have revealed.
According to foreign exchange specialist HiFX, the European nation remains a highly popular option among Britons who want to purchase a foreign residence.
This, it said, is partly because its economic problems have driven down house prices across the country, which means buyers from the UK can snap up properties in desirable areas at relatively low prices.
Mark Bodega, director of HiFX, commented: "The average property price in the country is down almost 30 per cent since the market peaked in 2007."
As a result, overseas money transfer activity between the UK and Spain, particularly among those who are relocating for lifestyle purposes, could be set to hold up over the coming months and years.
However, Mr Bodega insisted that foreign property buyers still need to be careful in Spain, as the country's housing market is very weak and its "macroeconomic outlook remains poor". Furthermore, he noted that the government's recent austerity budget is likely to provoke additional unrest among the population and possible industrial action, which he said may drive Spain into a downward spiral it has effectively brought on itself.
Therefore, he believes conditions in the housing market are unlikely to stabilise any time soon.
"Spain is in a precarious position, not so much due to the weight of her sovereign debt compared to GDP, but due to the high levels of private debt and an extremely weak housing market," Mr Bodega commented.
People in the UK who are considering purchasing a Spanish property were encouraged to research the market thoroughly before making any commitments and to make sure they are aware of the risks of buying in "economically uncertain times".
HiFX has already questioned whether the eurozone will be able to offer enough support to Spain in the event of it needing an emergency rescue loan, as it may not have the resources to do so.