The downturn in perennial hotspot Spain’s fortunes has created a lot of column inches of late. But some property specialists claim it’s not all doom and gloom because if you are a Fly to Let home-owner in Spain, the current crisis could well be a blessing in disguise.

The past has proved that sun, sand and sea proved a winning combination and tourists and investors flocked to Spain in droves, causing property prices to rocket.

Then the credit crunch came and prices in Spain started to fall, compounded by a glut of unsold apartments built by overenthusiastic developers eager to cash in when the market was piping hot.

Spanish properties have fallen by around 6.5 percent year on year, it was reported last month and experts have predicted that the decline will continue well into next year with an annual fall of around nine percent.

With prices falling and no sign of an upturn in the near future, buyers are not entering the market, which opens up a good opportunity for second home owners as more and more people look to rent rather than buy.

With the demand for rental accommodation rising, due to people finding it harder to secure mortgage financing and reluctance to buy into an unstable market, Fly to Let owners should see stronger demand and higher returns than ever.

Peter Pickett, from estate agent Casas Almería, said: “Over the last few months we've seen an increase in the number of people who are looking to rent.

“Some are waiting to see what property prices do and if the Euro/Sterling exchange rate improves, while others are still trying to sell their UK home in order to finance their property purchase in Spain.”

Cash buyers who are ready to move fast want to be in the location in which they want to buy in case a real bargain does come onto the market. Buyers who don’t require mortgage finance can snap up a bargain as many desperate vendors and developers are reducing prices by up to 30 percent.

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