Spanish Property Prices

Despite rumours that the bubble has burst on the Spanish property market, recent figures suggest that this is not true. Many Estate agents have found that the market Is slowing, but one of biggest banks here in Spain believe that there is little change that property prices will fall, unless there is a sudden increase in interest rates which is unlikely at the present time. Prices have not fallen in Spain for seven years, and recent increases are seeing average property costs rise to 1.78 per m2, making it more expensive than this time last year – an increase of 12%.

However, the fact remains that property sales are slowing because now affordable property is out of the reach of many. Whereas the main purchasers of property were the Spanish, foreign buyers are now pushing up prices beyond their means, especially for first time buyers – similar to what has happened in the UK.

Although many are turning to other overseas investments, Spain is still the number one destination for Brits who, it is estimated, will buy another 150,000 over the next three years.