The Spanish housing boom continues. Residential property prices increased by 12.1% in 2005, lower than 2004’s growth of 17.2%.

Spanish house prices have increased by 120% since 1999, with strong rises in 2003 (17.6%), 2002 (18.1%), 2001 (14.8%), 2000 (14.9%), and 1999 (12.4%).

From 1999 to 2005, house prices rose by 150.5% in Andalucia, 136.4% in Madrid and 133.4 in Valenciana. The residential real estate sector is set for another strong finish in 2006 with first quarter figures showing a 12% (7.7% in real terms) y-o-y house price growth.

Foreigners can freely buy properties in Spain, and there has been much foreign investment in Spanish property.