Spanish Property

An overview of the Spanish property market, with average price increases and average costs per square meter on a regional basis, to assist you when searching for your dream home in Spain.

Despite new property markets opening up in countries such as Turkey, Northern Cyprus and Bulgaria, and the continued increase in popularity of old favourites such as France, Portugal and Italy, Spain is still the most popular destination by far for those in search of a holiday or home in the sun.

For many UK residents especially, Spain represents a beautiful balance between a lively and exciting Mediterranean resort and a home from home abroad! 

You will often find beautiful beaches, thrilling nightlife and Spanish hospitality along side British food, English TV and many British expatriates, and it is this long standing harmonious relationship which makes Spain an evergreen destination for Brits, and Spanish property the ultimate purchase for those Britons keen to secure their place in the sun.

Until recently those seeking their dream Spanish home were drawn towards the coastal resorts on the Costa del Sol, Costa Blanca and Costa Calida, in recent years as these areas become a little overcrowded and property prices have exceeded many people’s budgets there has been a significant increase in the numbers of people moving further inland and north in search of affordable and attractive Spanish property.

The Spanish Government are actively encouraging this trend for two reasons.  Firstly they’re motivated to protect their sensitive ecosystem and to restrict over development along the coast.  They are basically learning from the mistakes made in certain areas where high rise high density residential complexes were built at great natural cost.  Secondly the Spanish Government are offering significant grants, tax and financial incentives to developers who move inland and develop areas of the country which have suffered a population and economic decline.  They have an added objective to build over 700,000 homes for Spanish residents and those seeking a home abroad and to restrict the speculative buyers who purchase and retain land or property until a significant return can be made on their real estate assets, at which point they sell up and cash in.  Such speculative retention is damaging for the economy of Spain and the Spanish property market.

These Government incentives to keep the real estate market in Spain going from strength to strength go hand in hand with other significant new trends which are drawing a whole host of fresh prospective purchasers to the property market.  These include the building of highly exclusive golf and lifestyle resorts and low rise luxury villa complexes complete with bars, restaurants and a whole host of facilities exclusively available for residents only.  Furthermore, it may have been the dream of many to purchase a rural rundown retreat in Italy or France but recently Spain has got in on this trend too.  There was a marked 15% increase in the numbers of individuals purchasing rural and rustic Spanish property for renovation in 2004 and this new trend seems set to last.

In terms of whether Spanish property still offers investment potential, the resounding answer seems to be - absolutely, yes!  Despite the start of a slowdown in the property market in the UK towards the end of 2004, the property market in Spain continues to go from strength to strength and market opinion is that it still offers good investment potential, more so in some areas than in others however. 

Those considering Spanish property from a buy-to-let angle for example will be pleased to learn that some 500,000 Brits visited Spain last year - many seeking the relaxation of an exclusive villa holiday - making the prospect of renting out your Spanish home for an income a very real possibility.  Property prices increased by over 17% in 2003 and 2004 across Spain and prices in 2005 are predicted to continue rising by up to 10%.  By 2008 it’s predicted that the number of expatriates buying in Spain will actually exceed the number of resident Spanish purchasers and by 2010 expatriates could make up 12% of Spain’s total population.  Spain never loses its overall attraction as an ideal sunny destination, budget airlines from the UK open up more routes yearly across Spain making more regions more accessible to more people.  As previously inaccessible regions open up so their property markets open up and offer more affordable property potential to more foreign purchasers.

With all these positive facts and figures it’s hard to imagine Spanish property ever becoming anything less than everyone’s dream!

If it is your dream to purchase a home in Spain here’s a regional breakdown of what you can expect to pay for your home per square meter together with percentage price increases per region for the year to March 2004.

Average Price per Square Meter: -

Andalucia - 1259
Aragon - 1139
Asturias - 1078
Cantabria - 1586
Castilla (La Mancha) - 910
Cataluna - 1961
Islas Baleares (Balearics) - 1728
Madrid - 2693
Murcia - 1188
Valencia - 1297

Average Price Percentage Gain

Andalucia - 20
Aragon - 16.5
Asturias - 15
Cantabria - 19
Castilla (La Mancha) - 20
Cataluna - 17
Islas Baleares (Balearics) - 13
Madrid - 20.25
Murcia - 28.5
Valencia - 21

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