Spanish Property Continues to Flourish

According to The Economist this week, the second quarter of 2006 saw property price increases in Spain of 10.8% per annum.  Although this is lower than the 13 or 14% increase last year, we must bear in mind that compared to gains in the UK at 6.9% per annum, we are still referring to good, solid growth in Spain.

It is clear investors are still making solid returns in tourist areas that are easily accessed through cheap flights. The growth of provincial airports supplying flights to new locations is having a direct impact on the property market and creating new mini hotspots for the discerning investor, eg. direct flights to Almeria from the UK have dramatically driven a new demand for this area.  In addition, low cost flights have recently been announced to Spain in the near future from Ryanair (Liverpool to Seville, and East Midlands to Granada) and Clickair (Heathrow to Seville and Barcelona) – all good news to our investors in Spain.