Spanish property showing record returns for investors

6 March 2007

With tourism numbers reaching record levels in 2006 and with that the 2.8 million international visitors coming to Spain in just one month, the rental market has never looked so good for investors.

With the best ever January figures recorded, research has revealed that more and more visitors are looking away from the typical Costa high rise beach front hotel accommodation, and opting for a more exclusive or independent holiday. This is welcome news for those investors who never lost confidence in Spain despite the bad press it has received in recent months over the isolated land grabbing incidents.

Much work has been done by the Spanish government to allay the foreign investor’s fears and more stringent rules are being put in place to avoid these situations happening over and over again.

Principal International, one of the UK’s leading overseas property investment experts say that the passion for Spain has never faltered for the British buyers, and with a 4% increase on the same month last year, tourism numbers show no signs of slowing down.

This is all good news for the holiday rental market as investors are seeing record occupancy levels in some of the lesser known inland and cultural resorts.
Not only that but the economy is strengthening and this is giving rise to capital growth in excess of 9%, mainly fuelled by the construction industry, as the balance between supply and demand levels out.

With the creation of 700,000 jobs last year, the labour market is showing positive signs, add to that the 800,000 new units expected to be built in 2007, and you have a booming economy and a stable property market in Spain.