Spanish property market up 11% despite softening predictions

12 February 2007

Research recently carried out by the Royal Institute of Chartered Surveyors showed that the European property market as a whole remained very competitive in 2006, with most countries acheiving double figures. Despite being slightly down on the previous year, many of the traditional markets such as Spain continued to show extremely favourable results and achieved a promising 11% price rise overall.

Even with the European Central Bank interest rate rises in 2006, the predicted fall in the housing market did not happen, and many of the lenders have refused to follow and raise their rates, keeping the housing market in Spain buoyant.The much predicted softening of the housing market therefore did not happen, and buyers are still keen to invest in the residential housing markets.

Some experts say that buyers looking to invest in Spain want more space, suggesting that the trend is shifting to the purchasing of villas and larger properties which is therefore making them more popular than the traditional apartment type purchases.

Principal International a leading overseas property investment company in the UK say that Spain is still popular with British investors and the second home buyers. They have a number of apartments and villas available priced at below 250,000 Euros in the Murcia and Almeria region. These offer excellent value for money as the average price quoted in a recent article written by a Spanish property portal is said to be 263,000 Euros for a three bedroom property.

With capital growth and rental yields in Spain still being amongst some of the highest in Europe, Simon Ryeland, Director of Principal International says that many parts of Spain are still showing a good return for investors, to check availabilty in Spain