Prices up as confidence returns to Spanish market

Confidence is returning to the Spanish property market as one developer starts pushing its prices up.

According to a report on Overseas Property Professional (OPP), a rise in sales of 30 per cent was enough for developer Key Mare to begin increasing its prices across seven separate resorts.

Stefan Kdist, the company's head of international sales, said that a sudden interest from British and Scandinavian buyers in the Almeria region was one of the reasons behind the price hike.

He told OPP: "We wanted to give a signal to people that things are getting better and they should have faith in the situation. Today, people don't feel there's such a risk of losing their jobs as they did a year ago. Most economies are recovering and prices and interest rates are low."

Up until now, the property developer had been following the lead of other firms and offering prospective buyers huge discounts to shift a surplus of unsold stock.

However, OPP warned that this is not the situation nationwide, citing statistics released by the country's housing ministry that show house prices have fallen 6.2 per cent year-on-year.

Almeria is located in south-eastern Spain and has one of the warmest climates in Europe.

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