Conti, the overseas mortgage specialist, has seen a 33% increase in Spanish mortgage enquiries over May and June.
It attributes the rise to “excellent” buying conditions and indications that the market is beginning to bottom out.
According to the monthly house price index from appraisal company Tinsa, Spanish property values were down by 10.8% year on year in June, compared with 11.1% in May.
Meanwhile, figures from the Spanish National Statistics Institute, INE, show that the decline in property sales in May were -9%, a lot less than the declines from January to March this year, which were between -21 and -33%.
“Bargain prices and the opportunity to negotiate these down even further with some very motivated sellers mean that it’s most certainly a buyer’s market,” said Clare Nessling, director at Conti.
“In addition, despite the ongoing eurozone crisis, the growing strength of the pound, which has been rising against the euro to levels not seen for around four years, is boosting the budgets of British buyers. These factors, together with historically low interest rates, are making it more affordable to buy in Spain right now. And signs that the market is improving are starting to lift the confidence of prospective buyers.”
Nessling argues that mortgage availability is generally good, with maximum loan to values still around 65-70%. Smaller deposits are possible in areas where house prices are more resilient, such as the Balearics, the Canary Islands, Madrid and Barcelona, she said.