Spanish property "Best Investment" for 2007
By Sue Brown, 26 Jun 2007
Spanish property remains the best investment for family holidays and buy to let as the market has soared through the first quarter “doom predictions” to show signs of further growth in demand and reduced costs of ownership.
Second quarter figures for equity growth are expected to nudge 9.5% with increased rental potential for property owners as tourism levels this summer are soaring with the recently added runway capacity and insatiable demand for Spanish Costa breaks.
Spain, with the leading Euro zone economy and current highest growth rate, remains the top place for foreign property investment. The Spanish Ministry of Tourism predicts that more than one million foreigners will set up home on the Costas in the next six years, and this figure is expected to treble by 2025.
Investment analysts confirm:
- 1,000s of people are actively seeking a property in Spain.
- Brit buyers have driven the success of the Spanish real estate market.
- Property has boosted domestic consumer consumption and strengthened the economy.
- Spanish property is an evergreen investment that has been tried, tested and pays off.
While it continues to hold a massive tourism appeal – Benidorm has more hotel beds than Greece - so property in Spain will remain one of the most desirable of all tangible assets for many people and it will serve to underpin and boost a successful economy.
By contrast, the second half of 2007 is crunch time for those investors who moved away from Spain to Bulgaria two years ago, as they take possession of buy to let apartments and struggle to find enough holidaymakers to pay the high interest mortgages of the local market.
Buy to let investors in Bulgaria were shocked at a recent report that revealed the average local family could not afford basics on earnings of less than EUR 3.10 per day. So for most of them it’s only EUR 96.10 per month – a long way short of the EUR 350 a week rental required by a buy to let investor facing, typically, mortgage repayments for a €100K apt of €375 a month.
www. PropertyInSpain.Net
London +44 0870 620 0034 Madrid +34 918 292 715
info@propertyinspain.net
Spanish Property News