Spanish Property News

Throughout the 1990s and the early 21st century, the property market underwent a massive boom which was so great that it began to cause concern with some observers who were predicting a resultant crash in property values.

Fortunately, these observers seem to have been wrong. There has been a gentle slow down in capital appreciation recently, which can be viewed as a good thing given that the massive appreciation of previous years was simply unsustainable for a modern, stable economy.

According to the Sociedad de Tasación in January of this year, there was a 10.1% increase in property prices in 2005. With 2003 and 2004 providing increases of 16%, this looks like a worrying decline, but when compared with the 10.8% average annual increase over the last ten years, the true picture of a minimal slowdown becomes clear. In actual fact, property prices have risen, on average, a staggering 140% over the last seven years.

It should also be pointed out that while price increases have slowed down slightly on average, much of this is as a result of a slowdown in some of the major cities. Many areas of Spain, such as the Costa Cálida or Costa Almería still offer excellent investment opportunities.

The engine of the Spanish property boom has been the low interest rates available on Spanish mortgages - these can be accessed through the main Spanish banks or through more familiar high street names, which also offer Spanish mortgages.

The good news for owners and for those considering buying in Spain, is that the market appears to be healthy and sustainable. More new build projects were undertaken last year in Spain than in the UK, Germany and France combined. Along with a multitude of cheap flights to Spain from all over the UK and you can see why it continues to be our favoured destination.