In a bid to reduce the number of properties sellers have been unable to shift, the Andalucian government has announced a 1 billion (£901 million) investment in the region’s real estate.
The news is likely to be welcomed by expatriate investors as the subsidies will allow developers to offer discounted prices on newly-built homes.
Although the reduced prices will only be offered to local people, it is hoped overseas residents will benefit from a general boost to the Spanish property market.
Under the scheme, mortgages will initially be set at a 100 per cent loan-to-value rate, with repayments subsidised from the fourth year for a further five years.
Andalucian authorities say the initiative could save buyers as much as 40 per cent over the full period.
In other news likely to be of interest to expats settled in Spain, financial advice website Shelter Offshore recently suggested expatriate health insurance could offer a better deal than paying state contributions.
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