Spanish banks and developers offer discounted properties in Madrid

Overseas buyers who want to snap up a cheap residence have been advised to look at the Spanish market, according to reports.

According to Homes Overseas magazine, there are many bargain properties available in Spain. Overseas property buyers are advised to take advantage of the current lull in the market as the current downturn in the Spanish housing market because of various global economic problems. This means that property values in places at the top end of the market, such as Madrid, are now within the reach of more people and they could find now a good time to snap up a residence which may previously have been unaffordable.

Spanish banks and developers have teamed up to offer discounted properties in Madrid. Spanish daily 'El Pais' has reported that developers have been forced to reduce prices and meet demands from prospective customers. Several developers will team up with leading banks , such as Santander, BBVA, La Caixa, Caja Madrid, Popular and Banesto, to offer discounted properties with mortgage financing which will be available for 20 per cent less than current market costs.

According to Spanish Property Insight, nearly 25,000 new properties in Madrid are ready for purchase and their developers have promised to sell them at a discounted price. The homes will be sold between €2,000 and €3,000 per square meter. The exact price of the property will depend upon its district in Madrid, but according to the maximum price limits a 100m² flat is €320,000 which is a 20 per cent discount on current market prices.