Boom in Spanish Property Market Continues
February 17th, 2006
For two decades, Spain has been almost unrivalled within the European market in terms of its position as a property investment hotspot and experts at The Homebuyer Show are suggesting that this continues to be the case.
One of Spain’s key advantages over competitive property markets is that it annually attracts millions of holidaymakers. Since 1994, in fact, it has been far and away the most popular holiday destination for UK residents and it accounted for 28 per cent of all holidays taken in 2001.
With France in second place with just 18 per cent of the market share, it is little wonder that the property market in Spain has remained extraordinarily strong despite rash claims from some that the bubble is ready to burst.
Many of those who holiday in the country decide to purchase a second home or build up a portfolio of property investments and Jason Windle, managing director of Platinum Properties, believes this will continue for many years.
“Even though there is talk that the Spanish property market has reached its peak, it is still catching up with the English market. I strongly believe that it has a long way to go and we may still be only mid way through the property boom,” he said.
Mr Windle has also pointed out that prospective buyers are motivated by the fact that there are no barriers preventing them from living or working in Spain. With the likes of Bulgaria still awaiting EU accession, this is one of the key factors in Spain’s dominance of the European property scene, while recent changes to the land laws have also made investment a more attractive option.
Recently released statistics from the government show that house prices in Spain increased by an average of 12.8 per cent in 2005, while Terry O’Connor, business development director of The Superior Group, has pointed out that some areas are seeing even more impressive growth.
“Some areas in the Costa de la Luz have seen inflation of 40 per cent in the last two years and we expect at least 15 per cent in 2006,” he suggested.
Alhama de Murcia is another area that has been picked out as a lucrative choice for property investment, with the thriving reputation for golf making it a significant growth area.
Buy to let investment projects are also popular in Spain, with Mr Windle suggesting that investors can expect around 700 Euros per week in rental income during the summer and 500 Euros per week during the golf season on two bedroom, two bathroom properties on the coast.
Nick Clark, managing director of The Homebuyer Show, has acknowledged that the likes of Cyprus and Bulgaria are certainly stamping their mark on the European property market, but Spain has retained the qualities that made it a UK favourite in the first place.
“With low cost airlines leaving for Spain throughout the day, good infrastructure and an established year round rental market, it really is an excellent investment opportunity,” he said.
“However, we would encourage any potential or professional investors to research the market and get advice from a professional before they commit.”
The interest in Spanish property clearly remains exceptionally high and many people are consequently looking at the next couple of years as an exciting opportunity to make impressive returns on their investments.
Story from Assetz News
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