The Pain in Spain is Mainly in the Real Estate Market

The media would have you think that real estate in Spain is in a terrible slump and prices are the worst they have been in decades. They hint that the whole housing market is just the pits. Tosh!

No seriously, do your homework on the Internet, ask around, talk to the locals and the banks and guess what? The market is slower yes, but stable and that means good ka-ching for investors for the long-term and good prices for buyers. Yes, the prices in some areas of Spain are a bit lower than they have traditionally been in the past. But to say they are depressed is not accurate.

The previous prices were right out to lunch and over inflated. If you want to be totally realistic about this, the prices now are more of an accurate reflection of the true market value of properties in Catalunya (Catalonia). So, if you're interested in investing, get cracking and start looking at properties for your portfolio.

Funny that the media reports didn't say that the overall real estate market in Spain has actually risen by over 10% a year. That's not to be sniffed at! Catalonia is at the lower end of the increases, but an increase is an increase, plain and simple. Here is even better news. Prices for houses etc. in the Catalonia area including Sitges, are actually holding their value despite UK property prices taking a bit of a hammering. Of course the closer you want to be to the coast, the higher the prices. Sneak inland some and they will come down.

What does this tell us about the real estate market in the Sitges area? It tells us it's in better shape than you might think from the outside looking in. Bravo! And that brings us back to the investment potential of properties here. Buy now and hold steady. When prices start to move again, that investment will pay off handsomely. Sitges is a desirable area to live in and the market there has not taken a beating.

Need any further reasons to invest in real estate in Catalonia? How about the breathtaking scenery from the Mediterranean Sea to the snow capped Pyrenees Mountains? For property buyers it's all about location and Sitges and the surrounding area has it in spades. In fact, property in this region remains on the expensive side, and for obvious reasons.

But, what about renting? That is definitely an option, however, and this may surprise you, rents are high. Right now renting isn't nearly as attractive as owning. This is because those who want to buy are waiting for housing prices to come down, so they opt to rent instead, which increases the demand for rentals. This is one of the more richly perverse cyclical aspects of the real estate market all over the world. What you think should be the case is not.

Catalonia a mix of interesting cultures with rich histories that add to the local ambiance set in stunning surroundings and offering a nearly perfect climate. How's that for meeting the first rule of real estate, location, location and location?