The Spanish property market thrived off the back of a strong tourism industry which required the creation of high quality housing. The country experienced a large influx of private investment accompanied by public investment to support the development and growth of Spain’s coastal regions.
Owners of Spanish real-estate gained fantastic returns making their properties very valuable in the process. However the impact of the financial difficulties over the last couple of years was felt by Spain like many other major European markets, and property in overdeveloped areas underwent a price correction.
Now some leading property brokers have changed their business model to offer higher levels of security and return on investment, 2 of the main key drivers in today’s market. For investors this means that with the necessary research, properties can now be attained that deliver on price, payment and investment.
Murcia located on the south-east coast has recently received attention from property investors given its well-established, high-quality resorts and low entry price points. Key infrastructure projects such as the extension of the AVE (Spain’s high speed train) creating a new route between Murcia and Madrid is set to gain wider appeal, luring the Northern Spaniards to the area. Local infrastructure improvements continue to be developed and several major low cost airlines fly direct to Murcia, making the region increasingly accessible. In addition to this with property prices 40% lower than the national average and strict planning laws in place to prevent overdevelopment, Murcia is well positioned to experience substantial growth over the coming years.
Another region that has proved a hot favourite for property investors in the past is Marbella which is Marbella is already experiencing growth. Average house prices in Marbella increased in 2009 from €653,000 to €688,000 (5.36%) in the most difficult year for property on record. Marbella property performed 3.7% better than the rest of the Costa del Sol and 22.4% better than the rest of Spain. The re-emergence of this area’s popularity stems from its high quality real-estate, exclusive location and the ability to attract tourism through-out even the toughest times.