Property in Spain Presents Bargains, Tenerife Growth Continues

Spanish property prices could drop by up to a fifth in the next year, according to market experts. Figures from the Spanish Property Owners Guild (SPOG) show that property prices have already dropped 16% and the body is forecasting a further 15% drop in the coming year.

Another study released shows that the number of British people buying property abroad has risen significantly since 2001, and that 54% are buying overseas property as holiday homes or as retirement homes. For these people, many of whom will buy in Spain; further price drops are great news.

While price-drops in Spain are a very negative event, especially for those who invested before the crash, but Les Calvert, director of overseas property portal Property Abroad talked about some of the positive aspects of the drop in prices.

"Spain is still the most popular destination with overseas property buyers, and that is almost completely undeniable owing to the fact that several recent overseas buyer surveys have put Spain in first place. And with Spain's popularity with tourists remaining strong, this translates to higher rental yields on Spanish property. In the current climate, most people are buying-to-hold for the economic recovery, and I would recommend buying a Spain property with this in mind more-so now than I would have a year ago. If you can get a real bargain, and I mean a good property, cheap as chips in an area not over-developed, buy it."

"Despite the situation in Spain," continued Calvert. "Tenerife property