Spain still hotspot for bargain properties

Global property prices shot up 8.4% in 2014 but Spain is still at the foot of the table as figures indicate that recovery is still a long way off.

Spain is at 50th place among the 56 countries surveyed by real estate agent Knight Frank for its Global House Price Index.

Last year’s 8.4 price hike is the largest annual figure since real estate giant Knight Frank started publishing its Global House Price Index in 1995.   

The firm is confident that the number signals an upturn in the global economy.

But Spain’s struggling property market is still down on its luck.

Prices fell 4% from the final quarter of 2012 to the same period a year later.

There is some good news though. Spanish property prices are now falling more slowly: the drop was 2.2% in the six month from the second quarter of 2013 to the fourth quarter of 2013.

Spanish property expert Mark Stucklin thinks that Spanish property prices will continue to fall in 2014 due to over-supply, mortgage restrictions, and the weak economy.

But Stucklin said he thinks prices will stabilize in prime areas of Barcelona, Madrid, and popular coastal regions.

“Prime areas will lead the way towards a gradual recovery.” he said.