I work as an IT consultant for an estate agent on the CDS and have definitely seen a “cooling off” in the market here. We have also seen a lot of investors turning to emerging markets such as Bulgaria, Turkey and Brazil. As have many of the bigger estate agents (some quicker than others) – as their Spanish property sales are clearly not paying the bills.
On a personal note: I myself am looking to buy on the CDS in 2007, but am looking to buy to live rather as an investment or to earn rental income.
If I thought that over a period of time my property would not increase in value then I would not buy and would instead continue to rent. But I am confident that a) I can find a bargain since it is definitely a buyers’ market and b) over the medium to long term it will still prove a sound investment, because despite everything, people still on the whole like Spain.
Just my two penn’orth!