Spain hits the skids…but not for long
Latest inflation figures reveal the decade-long housing boom is over, but there is light at the end of the tunnel…
New house price inflation figures, released by Sociedad de Tasación last week, have left little doubt that Spain's property boom is over. While the cost of a new home rose by 5.1 per cent last year in the country's provincial capitals, the increase in the last quarter, with respect to the first six months of the year, was only 1.1 per cent, as reported on Expatica.
However, Richard Brady, director of Olive Tree international, believes this is only a temporary glitch: "In 2005, a quarter of a million British people bought overseas with the largest percentage being in Spain. By 2007 this was no longer the case, as people have started to invest in property elsewhere. Spain affords easy access from the UK, has an excellent infrastructure, miles of beaches untouched by an urban landscape and can offer good potential.
Excellent track record
Mr Brady continued: “You just need to ensure that you buy through a reputable company that can guarantee land ownership. We feel that within a couple of years Spain will resume its appeal to UK buyers and prices will begin to climb again. Investors can look forward to long-term, stable capital growth and excellent rental potential in a country that has, overall, an established infrastructure and an excellent track record."
The biggest increases during 2007 took place in Valencia, AlmerÃa and Barcelona where prices rose by over 8 per cent. Prices fell in Segovia and Vitoria by 2.7 and 2.5 per cent respectively. The average price per square metre of a new home last year stood at €2,905.
The most expensive city for new housing in Spain in 2007 was Barcelona, where the average price per square metre stood at €4,543, and San Sebastián overtook Madrid as the second mot expensive city in Spain.
