Highend Spanish properties retaining their value

Reports of a housing market crash on the Costa del Sol have been exaggerated, according to a local market expert.

Spain has been badly affected by the credit crunch and some reports have claimed that a lack of demand has led to widespread falls in the value of property.

However, local estate agent James Stewart told the Financial Times the impact of the country's economic slowdown has not been uniform.

He explained that there are some bargains available at the bottom end of the market, as developers have cut prices in a bid to stimulate demand.

However, Mr Stewart revealed that luxurious properties are still selling, even without the asking price being discounted.

"If you bought before 2000 you'll have done well at whatever sector of the market. At the top end, prices perhaps doubled in the period up to 2004 or 2005, although since then there's been no real change," he explained.

Meanwhile, official figures show that the prices of both new-build and resale property in Barcelona are continuing to rise, reports Spanish Property Insight.

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