Spanish Property Investment Advice 

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

Posted on 28 April 2006

Spain has been named the most popular family holiday destination for UK travellers

Spain has just been named the most popular family holiday destination for UK travellers by Holidays-Direct. This is based on an analysis of the favourite search terms on its website. Although this is hardly the most measured and scientific approach, it is consistent with other reports that are expected to come out over the next few weeks.

These stats are of particular interest to those investors who are looking for both capital appreciation and rental returns from their investment properties. Although there is currently more capital growth to be found in some of these Eastern European markets due to enter the EU soon, any analysis of the property markets of the 2004 EU entrants shows that much of the initial growth is driven by foreign investors. The markets do then tend to flatline for a while when these investors sell up and the rental market can be non-existent in places. That is not something that should be experienced with Spain, not with a combined and strong domestic and tourist market.

You may have spotted some of the press coverage for EyeonSpain.com this week! According to a recent survey of its members, one quarter are not happy with the whole property buying experience in Spain, nor their estate agents. I will not bombard you with more detailed stats, but that figure does not surprise me at all. Although it may be less than diplomatic to say so, the problem is a simple one and easily fixed.

You do your due diligence on the resort, the development, the property, the estate agent and the solicitor you are using. I have been in property for more than 20 years and I have lost count of the normally sane and sensible Brit buyers who bought on a whim on holiday, who did not check future building plans, who did not check out the seller's agent at all and who did not even go to a solicitor before signing documents! Some buyers seem to be rendered senseless by that hot Spanish sun. It is really a matter of doing some common sense research that's all.

Interesting to note that property prices continue to rise in Barcelona, Madrid, and Valencia. Idealista.com has just released a report based on a sample of 23,760 second hand homes on sale in these districts and municipalities of Barcelona in the first quarter of 2006. Note, of course, that asking prices and selling prices are not always one and the same though. With that proviso in mind, Barcelona prices increased by 4.3% to an average price of €4,694 per m2, Valencia by 3.7% with an average price of €2,602 per m2 and Madrid by 1.9% to an average of €4,138 per m2. Those who invest on an affordability basis may wish to look at Villaverde and Carabanchel which are the most affordable at just under €3,000 and just ofer €3,100 per m2.

By the by, the next issue of my International Property Alerts newsletter, IPA 2, is out early next week. As with the daily emails from www.internationalpropertyalerts.co.uk, it is all free. You just need to register an email address at www.internationalpropertyalerts.co.uk. If you missed last month's newsletter, IPA 1, email me at Imaitland@aol.com and I will send it you free of charge. There are some useful articles on doing your due diligence in there!

All for now

Iain Maitland

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