WHAT FOR years was a seller's market on the Costa has quickly become a buyer's market, with the property downturn now producing widespread markdowns on real estate. A visit to any property sales office or real estate website quickly confirms that prices are being slashed.

Here are just a few examples from a quick search on the website segundamano.es: Two-bedroom flat in Marbella, was 379,000 euros, now 210,000 euros; two-bedroom flat in Fuengirola, was 324,000 euros, now 230,000 euros; two-bedroom penthouse in Benalmαdena, was 199,000 euros, now 180,000 euros; studio apartment in Nerja, was 118,000 euros, now 78,000 euros.

One recent report cited a listing on the property website Idealista.com for a flat in Manilva that had been marked down a staggering 50 per cent, from 550,000 euros to 225,000 euros.

While that may be an exceptional case, examples of significant markdowns can be found on all types and sizes of homes in every region of the Costa. The trend is the result of a combination of factors including an economic slowdown, rising interest rates, and a stiffening of loan requirements by banks. Added to all of that, say some experts, is a 'latent demand' as many potential buyers sit on the sidelines waiting to see if prices will come down further.

Thus many sellers are finding it necessary to drop their price if they want to unload a property in a reasonable period of time. Recent reports have indicated that in the last year the number of real estate transactions dropped by 20 per cent, while the inventory of unsold homes in Mαlaga province had reached 27,000 - around the double the figure from two years earlier. Free gifts and special offers Developers selling new homes are also resorting to an array of special offers to unload their properties- everything from throwing in a free parking space or storeroom to supplying furniture to paying a year's worth of mortgage payments. In the words of Josι Prado, president of the Mαlaga Association of Builders and Developers, "This is the ideal time to buy."