Young investors look to the popular secure property markets of Spain

4 April 2007

With the rising prices in the UK, property is becoming more and more out of reach for the first time buyers looking to get a start on the property ladder. Research shows that it’s not only retirees flocking to Spain but the UK’s younger generation are becoming increasingly tempted by the low cost of property all over the shores of Spain.

House building rates are far stronger than in the UK and there is continued demand for the typical tourist locations of Mallorca, Costa Blanca and Costa del Sol.

Principal International, a leading overseas property investment company say that Spain offers those young families looking for a new start a safe low cost of living environment with the added benefits of a warm sunny climate, and as its only 2 hours flying time from the relatives that they’ve left behind in the UK, the move across the shores does not seem so daunting.

The whole of the European property market reached record levels last year and Spain in particular has continued to draw serious investors as well as first time buyers looking for a low risk investment opportunity.

The latest Jones Lan LaSalle European Capital Markets report has confirmed that over 50% of the property transaction volumes came from cross border spending in 2006, indicating that investors are increasingly looking to riper markets across the channel to secure their money. Spain is a safe bet and an established market which almost guarantees that the rental opportunities are maximised, as well as the returns on property value.

With financial rewards on capital growth reaching as much as 12% in parts of Spain, the property market here continues to outperform equities and bonds.