Norwegians eye cheaper Spanish holiday homes

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Norwegians keen on owning a holiday home in warmer climes are reportedly eyeing developments in the Spanish real estate market with interest. Falling price levels are leading to plenty of bargain-hunting, reports newspaper Aftenposten.

“I’m following the market closely,” Gunnar Kolås, a Norwegian keen on spending his winters in Spain, told Aftenposten. “Prices keep falling and falling.”

More than 20,000 Norwegians live permanently in Spain and as many as 60,000 spend several months of the year in the country, many clustered in areas like Torrevieja and Alfaz del Pi. Nearly 13,000 reported property ownership in Spain to Norwegian tax authorities last year and another 40,000 reportedly are interested in buying holiday property outside Norway, according to Prognosesenteret.

Prices in the Spanish market, among the most popular with Norwegians, have fallen as much as 30 percent since peaking in 2007. Steinar Juel, chief economist at Nordea Bank in Oslo, said he thinks prices will fall further, perhaps another 20 percent before the market stabilizes.

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