Spanish property market. Hotspots for investment property in Spain
Within the Spanish property market there are several "hotspots" which offer some of the best investment property in Spain. When looking at any Spanish home for sale you must consider how its value will be affected in the long-run.
Spanish property market heavyweights
The growth in Spanish property prices exceeded 25% annually in some areas over the past few years. Looking at similar Spanish homes for sale in two different parts of the country will show how much regional variation there is in the sector.
Due to the impact of British buyers, the Costa del Sol is the most expensive area of the country to buy a home with an average sale price of €270,000. The ongoing desirability of the region, the other Costas and the islands results in some low short-term capital gains in Spain.
The Balearics and Canaries remain popular with the overseas market. The average price of a two-bedroom apartment in the Balearic city of Palma is around €180,000, around €20,000 more expensive than a similar property in Gran Canaria.
Spanish property contenders - Murcia, the interior and cities
Murcia has been THE emerging hotspot in the Spanish property market in recent years. Massive investment in infrastructure is being carried out in the region and the Corvera International Airport will be operational by 2009. Real estate prices in Murcia have more than doubled in the past four years and, as a result, its days of offering the best investment property in Spain may already be over.
The cost of coastal Spanish property is forcing more and more investors inland. It is in the vast interior that many of the best investment properties in Spain are to be found. In areas such as Extremadura and Almeria prices are around one-fifth of what a comparable property would cost on the Costa del Sol.
A two-bedroomed Spanish home for sale on the outskirts of Granada, around 90 minutes drive from the beaches of Costa del Sol, will have an asking price of around £100,000.
Buyers looking for investment property in Spain have noticed this and as a result the average cost of a Spanish home for sale rose by 21.4% in 2005 in Galicia.There has also been a sharp rise in interest in urban areas with average prices now exceeding €6000 per square metre (the Spanish method of giving property prices) in nine cities. This is expected to continue over the next decade with prices set to rise accordingly.
The price of a Spanish home for sale generally reflects the position of a region within the hierarchy of Spanish property hotspots. Investment property in Spain is increasingly to be found in areas not traditionally regarded as hotpots.
