The weak pound against the euro can benefit both buyers and sellers in Spain’s property market according to real estate agent Mercers.

The agent admits that at first glance it’s tricky to work out how buying a villa in Spain in 2000 for €122,000 and selling in 2010 for €85,000 can be seen as anything but an unmitigated disaster.

But Mercer explains that if the seller is British the buyer can pick up a bargain while the vendor still makes a profit.

Here is the above-mentioned example in more detail. In mid-August 2000 Mercers was selling three bedroom three bathroom detached Neptuno-style villas on Camposol Golf on Spain’s Costa Cálida for €122,000.

The exchange rate was €1.65 - £1 so this worked out to be an equivalent of £73,939. If the same villa was sold at the same price tag today (€1.12 - £1) the vendor would get around £108,708 – a gain of almost £35,000.

So, claims Mercers, the reality is that they could comfortably drop the price to €85,000 (£75,735), way below its value a decade ago, and still be a few grand better off.

Chris Mercer, director of Mercers, said: “Some commentators have held real estate agents responsible for artificially driving prices down but the fact is we live in a market economy.

“In 26 years in the business I have never experienced a Spanish property market that is so price-sensitive and for that we can blame British monetary policy and a weak pound, the reluctance of banks to lend and an enduring global recession.

“I would of course much rather be selling Neptuno villas for €180,000+, Mercers would earn more commission, but motivated vendors need to be open to offers and buyers be aware that genuine bargains are available if they look in the right places.”

Mercer adds that the good news is that there is still a pent-up demand in the UK for Spanish property. Both Rightmove and Primelocation put Spain at the number one spot in their most searched-for destinations in November 2009 taking 19.64 percent and 30 percent of the total respectively.

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