This might not come as a shock to most of us, but recent reports have emerged from the National Statistics Institute (INE) explaining that in February of this year, there were 26,415 new mortgages on homes granted, which was 4% less than last month and 47.1% less than the same month last year.

These statistics are based on registered mortgages, which only become accessible 2 to 3 months after the property purchase has been complete and signed. What this information tells us, is that after 22 consecutive months of decline; the impact of the crisis is far stronger then when it first started.

Continuing our focus on mortgages during the month of February 2012, the average amount obtained on a Spanish residential property was 104,868 Euros, which was down 14.6% on the same month last year. The overall total of mortgages granted stands at 2,770 million Euros, 54.8% less year on year.

The average interest rate on mortgages in February 2012 stood at 4.35%, 17.3% more than in February 2011.

It is not all bad news, quite the opposite depending on the position you find yourself in. If you are a buyer, with access to money or can raise money off shore, then property in Spain, and in particular Barcelona, hold great opportunity. With the lack of new buyers coming into the market due to the fact that mortgages are hard to come by, have made sellers rethink their price strategy, plus the buyer is then put into a strong negotiating position considering the seller knows that buyers are few and far between.

Properties that would have been sold a few years ago at more than 4000 Euros/m2 are now selling today at 2557 Euros/m2, which makes the current property sector in Barcelona a buyer’s market.

With the help of a Barcelona property professionals, who acts with the buyers best interest at mind is an essential step to take if you want to avoid the pitfalls in this opportunistic time. Yes, anybody can scourer the internet and find a property that fits their budget, but asking the right questions, ensuring the entity is legal and the power of negotiation are very different aspects of the sale, especially in Spain.

With fantastic Barcelona property investment opportunities, now is the time to dip your toe into the property market again.

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