Introduction: Investing in Spain
€400M Real Estate Investor
'Confident' On Spain Market
Just after the biggest single investor of 2004 committed €400,000,000 to the Spanish real estate market he met with Property in Spain management at the heart of Canary Wharf - Britain’s biggest property success - and pronounced full confidence in his investment move for the next five years. Enrique Lahuerta Talens, of leading Spanish bank CAM, said the money was being invested in land, projects and development, centred on Valencia Province. He said his bank’s forecasts indicated that property growth and rental yields would slow over the next two years and then settle down at a steady seven percent average annual growth until 2009.
The banker said their forecast was for 12% equity growth in 2005 and again in 2006 with rental yields at around 7%.
He added: “Our bank is happy to continue to lend into the Spanish property market by way of mortgages to British and other foreign buyers and we will provide loans on land and construction. Our new investment is additional to our normal lending activities.”
Like CAM bank and other leading institutional investors, Property in Spain cannot forecast what might happen after that date, but it is unlikely that demand for property in Europe’s favourite holday destination will diminish, following years of EU official figures showing Spain to have the highest property growth and highest economic growth – twice that of the UK. However, what is certain is that some areas will do better than others and our Network of property professionals in the UK and Spain will strive to ensure our buyers receive the most relevant investment information and benefit the most…
Asking the right questions makes sure you get the right investment advice that’s best for you and we suggest you start with the helpful website and literature of the Financial Services Authority, who are now also responsible for regulating the UK Mortgages industry.