Sunday, 20 November 2011

Spanish Property Prices Are Still Falling, but the Costas Are Perennially Popular

Property prices in Spain are still declining, but the Costas have always been popular with international buyers and prices in these regions are seeing lower price falls.

According to Tinsa, who is one of Spain's leading appraisal companies, prices have fallen most in regional capitals, and have declined by an average of 8.1% to the year ending in October.

Prices in metropolitan areas have declined by 7.5%. However prices on the Mediterranean coast have fallen by 6.9%, while the Canary Islands and the Balearic Islands have seen price declines of just 3.4%. Property prices have fallen by 30% on the coast and by 20.5% in the islands.

Data from the Department of Housing paints a slightly different picture as it shows property prices fell by an average of 5.6% to the year ending in the third quarter.

This data shows prices having fallen by 9.1% in Costa Dorada, by 8.5% in Madrid and by 8.3% in Murcia. Prices increased in Tenerife and Extremadura by 1.7% and 1% respectively, but data from the Department of Housing is usually regarded as being pretty unreliable.

However the declining prices are attracting overseas buyers, with Russians proving to be the most ardent purchasers followed by the Scandinavians, Dutch and Belgian buyers. One of the most popular regions is Murcia due to the new Paramount theme park, the new international airport at Corvera and the prospect of the AVE train network extension.

Work on the new theme park is due to begin in March next year, and the new international airport will see a number of scheduled services next spring. Work on the train network extension is also expected to begin next spring as the European commission has deemed the link to be a priority, and as such it will receive financial backing.

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