Overseas investors are taking advantage of a situation in Spain which has led to a 38 percent discount in property prices says one of the country’s specialist agents.

Average property prices are down by 20 percent on the western Costa de la Luz.

This coupled with the pound making an 18 percent recovery from the start of the year has led to a revival in interest from serious property buyers says Titan Properties.

Ellie Richards, the company’s property advisor, explains: “New clients, and prospects who’ve sat quietly on our database, are gradually moving off the sidelines and feeling the confidence to enter into discussions about a new home in southern Spain.

“Although nothing like the volume of years before, these potential purchasers are genuine, well-informed and in the main have the funds without needing to arrange finance.

“Clearly people still have money, but have lately been too nervous to part with it – until now. Titan Properties has been selling across the board from modest apartments through to spacious golf villas over recent weeks, our strongest sales period for quite some time.”

The combination of a strengthening pound and a number of developers and private individuals dropping prices under immense pressure to sell has created the situation.

Richards added: “Of course it’s still not an easy market to operate in, clients are certainly making us work harder for them negotiating discounts and favourable payment terms, but the western Costa de la Luz has an edge over the other Costas.

“This Huelva province has never seen overbuilding or illegalities in licensing which works very much in our favour in terms of earning buyer’s trust.

“We may not have the same volume of distressed sales as the Costa del Sol which has kept discounts from falling below the 20 percent mark but, given that prices here were already 30 to 40 percent cheaper than the Costa del Sol prior to the crisis, we are still by far a preferable purchase option.

“It’ll be a slow process towards full recovery but for us slow is better. A stable, gradual market correction is far better than a quick upsurge. We don’t want another bubble; after all, that’s what got Spain into this muddle.”

Examples of the discounts include a semi-detached Villa in El Rompido which was €560,000 and is now €441,000 (21 percent discount) and a four bedroom villa set on the idyllic Nuevo Portil golf course which was €847,000 and is €690,000 (19 percent discount).

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