Spain set to be investors market in 2007

4 January 2007

Despite the many years of property price booms and apartment block developments being built, Spain is tipped to be a buyers market in 2007.

The massive development we’ve seen in previous years has created huge competition from the sellers which has meant that prices have been forced down. As a result we can expect to see a stabilising of the property market in 2007.

This means that any new development coming up in 2007 will see a steady price rise and this makes it a great opportunity for overseas investors and second home buyers.

House prices grew almost 10% in the last quarter of 2006 with capital growth showing a healthy 10.8%.The stock market too showed increased confidence in the Spanish property market with shares of property companies rising by 60% in 2006.

Those looking to invest will have higher expectations of the property build and finish to meet the competition from the large volumes of existing apartment blocks built in the 90’s.The demand will be for property at the higher end of the market in quality locations.

Property investment specialists say that we should choose carefully and look for high quality projects to ensure a good rental return.

The recent changes by the Spanish Government to the capital gains tax will also see a further influx of buyers. This is welcome news for investors as the tax has now been cut in half to 18%, even better news for those seeking to retire here.