Overseas property purchasers are being urged not to dismiss buying a property in Spain in favour of newly emerging hotspots in eastern Europe.
Spanish property experts say that buying property in Spain can still offer good capital growth, rental returns and a stability not currently offered by eastern European countries.
There is a feeling among some overseas property investors that the property bubble in Spain, where property prices grew by 17.2 per cent in the first half of last year, is about to burst.
But Jason Windle, managing director of Spanish property firm, Platinum Properties, disagrees.
“Even though there is talk that the Spanish property market has reached its peak, it is still catching up with the English market,” he said.
“I strongly believe that it has a long way to go and we may still be only mid-way through the property boom.
“With excellent health services and an unrivalled quality of life, Spain offers a much more enjoyable investment opportunity than reading share prices every day. What’s more, as there are few barriers to living and working in Spain it has become a favourite destination for people looking to migrate or retire overseas, which acts as a great support to prices.”
Terry O’Connor, business development director of overseas property company The Superior Group, agrees that Spain is still a good option.
“Mortgages are easily obtained, there’s no worry with currency instability and there are some great deals at the moment. Some areas in the Costa de la Luz have seen inflation of 40 per cent in the last two years, and we expect at least 15 per cent in 2006.”
Earlier this year, property investment firm Assetz said property in Spain was overvalued.
Stuart Law, Assetz managing director, said: “Valuations on Spanish property have overshot the mark and investors may come down to earth with a bump in 2005 as prices fall back into line.”
But Nick Clark, managing director of the Homebuyer Show, said: “Despite emerging property markets creating a real buzz at the moment, traditional markets like Spain are still incredibly popular with visitors to our shows.
“With low cost airlines leaving for Spain throughout the day, good infrastructure and an established year round rental market, it really is an excellent investment opportunity. However, we would encourage any potential or professional investors to research the market and get advice from a professional before they commit.”
Platinum Properties and The Superior Group are among the companies specialising in overseas property that will be exhibiting at the Homebuyer Show.