They say hindsight is a wonderful thing – well, when it comes to the Spanish property market, facts about who was buying what and where in 2007 can certainly help would be investors and home purchasers determine where they do and don’t want to be buying Spanish property in 2008!
Thanks to the award winning Spanish property portal Kyero.com, it is now possible to quickly access the facts and stats about who bought what in which region of Spain and for how much money, and then work out from the trends which Spanish locations are likely to be hot and which are not in 2008.
Thanks to the expansion of the highway between the Costa del Sol and the much lesser known Costa Tropical, the latter saw an intensification of interest in 2007 as those attracted to the delights of the former discovered that property prices along the Costa Tropical were significantly more affordable. This trend will continue in 2008 for sure because the Costa Tropical is as naturally beautiful as the Costa del Sol, and yet it is far less developed and prices for Spanish property in this region remain significantly lower than elsewhere along the southern coast. The Costa Tropical is much more accessible thanks to the road network expansion, and accessibility will become even greater when Malaga’s massive airport expansion in completed.
Another area to benefit from an intensification of interest in 2007 was the Huelva province. This witnessed strong interest from buyers of holiday homes and witnessed a price increase of around 27% in 2007. But one of the most interesting trends to be witnessed across the whole of Spain was that of buyers favouring inland locations and properties far from the coastline. The vast majority of those seeking properties for sale in Spain through Kyero all headed inland with a year on year increase in the numbers of those looking for country houses and land for sale in particular.
The one fact that stood out and which investors really must heed is that all properties searched for had to be within a maximum of a 100 km distance from an international airport. Any further and buyers were just not interested at all. So, if you want to buy Spanish property to let to tourists or you want to find an asset you can use and then one day resell for a profit, do not expand your search wider than a 100 km radius from the likes of Malaga airport.
In 2007 Malaga, Granada, Jaen, Tarragona and Zaragoza provinces were the most popular, with interest waining in Almerira, Alicante and Murcia. The biggest price gains were seen in Huelva with gains in excess of 27%, followed by Asturias where gains were in the region of 25%. A number of locations in Spain actually saw price crashes – with the trend particularly strong on the islands like Fuertaventura, Gran Canaria and Lanzarote.
So, what does this tell us for 2008? Well, if you want cheapening prices look to the islands, if you want popular stock head inland, and if you want the best chance of renting or reselling your Spanish home, make sure it’s no more than 100 km from an international airport.