Spanish Property Investment Advice 

Brought to you each week by our property expert, Iain Maitland.

Posted on 07 July 2006

Huelva, on the Costa de la Luz, has ‘hotspot’ written all over it!

Huelva, on the western Costa de la Luz, has ‘hotspot’ written all over it! There are two massive triggers coming into place – a proposed international airport and a high-speed train connection with Seville. Mix in the beautiful undeveloped coastline, the protections that limit construction and the affordability and you have a sure-fire winner from where I am sitting. What’s more it is becoming a year-round resort. There are six golf courses there already with another six or seven coming through the system. The Golf Federation of Andalucia says Huelva is one of the fastest growing golf destinations in the country and this is probably the biggest plus of all.

This week, I am going to give you the best, but most unwanted, piece of advice you’ll even get about Spanish property investment. In fact, it will generate the most appalling hate mail for me from developers and agents! The holiday season is now well underway and Malaga Airport had more than 1,500 flights this weekend. Many visitors are flying in to combine a holiday with a property inspection trip. My best advice? Have a great holiday and ignore the property developments. Viewing a property development when the sun is shining, you’ve got the kids in tow and you’ve had a couple of beers is a disaster waiting to happen. Come back in November when it’s cold and wet, you’re on your own and you’re feeling miserable. That’s when you’ll see the property development how it really is.

Despite the doom and gloom merchants, property prices in Spain are still on the rise. According to the Spanish Valuation Society, property prices rose 6.3 per cent in the first six months of the year. This is up from 4.5 per cent over the same period in 2005. In terms of price per square metre, Barcelona and Madrid and San Sebastian led the way. Capital growth has been most in Catalonia at 8.8 per cent, Castilla-La Mancha at 7.5 per cent, Andalusia at 7.4 per cent and Valencia at 7.4 per cent. For me, Murcia and Almeria will be the biggest price risers over the next few years. They are benefiting from the ripple effect from some of the more over-priced locations nearby. More on these another time. Until then...

All for now

Iain Maitland

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