The desire for British and Irish buyers to purchase an investment property or holiday home in southern Spain is as strong as ever, despite the financial restrictions of the credit crunch claims one of the Costa del Sol’s estate agents.

In a recent survey by Spanish agent Andalucian Dream Homes, 74 percent of respondents are still looking to buy Spanish property despite the credit crunch and it believes the hunger is being fuelled by the need to bolster diminishing pensions.
63 percent of respondents believe property to be the best option for supplementing dwindling pensions over the next 10 years.

The Costa del Sol is still one of Europe’s favourite holiday destinations and the new airport expansion means the region is set to see in excess of 20 million visitors per year, providing a captive market for Fly to let investors.

Temporary loss of spending power from the pound to the euro was found to be the main reason people are waiting to buy, with 55 percent saying this affected their decision.

The exchange rate has affected property sales but the situation is temporary and is likely to recover to some extent during 2009.

However www.spain-holiday.com, one of the leading holiday rental companies in Spain, argues that in real terms the buying power of the pound hasn’t actually changed because the weak pound is cancelled out by lower selling prices.

Those sending funds back to the UK are reducing asking prices as they can get the same amount of pounds for less. Developers are also offering major discounts on new units. Other points of note in the survey were that buyers felt confused about how to recognise and choose the best locations and, in these times of big discounts and fluctuating exchange rates, how to accurately assess the real value of a Spanish property.

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