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Traditionally Spain has been one of the most popular countries for overseas investors to acquire property in for many years. Indeed, the Economist newspaper recently reported that property prices have risen faster in the last 20 years in Spain than in any other country. Annual growth has been documented at 17% since 2002 with increases as high as 30% in particular areas not uncommon.

There are no indicators suggesting that the property market in Spain will slow as there is still huge demand for both resale and increasingly, off-plan property, which is fuelled by the popularity of the country for holiday makers. Last year approximately 50 million tourists visited Spain and the European Union recently published figures denoting that the Costa del Sol had the largest increase in population of any region in Europe.

The fact that the Spanish property market is so popular with investors has meant that prices have invariably been driven up in recent years so it is more difficult to find a bargain property especially in the popular tourist areas such as the Costa del Sol and the Costa Blanca, however, there are a number of up and coming resorts such as Costa Almeria and Costa Calida where prices are more modest. Alternatively, heading inland will ensure that you will get more fro your money. Off-plan properties are also usually very good investment opportunities, providing that you do your homework prior to committing.

There are large amounts of low cost airlines flying to numerous Spanish airports and this is helping to consolidate the short term rental market. It is possible to achieve a 10% rental yield in the more popular areas, but 5% is a more realistic figure due to the prevalence of a number of visitors choosing to actually buy property rather than rent.

Typical prices for property in Spain are as follows -

One bedroom apartment – €180,000
Two bedroom apartment – €210,000
Two bedroom villa – €240,000
Three bedroom villa – €360,000
Four bedroom villa – €460,000

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