Spanish property market

Nick Freeston, Director - International Department at Chesterton International, comments: “It is interesting to note that according to the government’s figures in 2005, some of the highest growth regions in Spain were Aragon, Andalucia and Galicia. Average capital growth was 12.8% and in 2006 Mallorca is proving to be our hottest market with growth levels anticipated to be in double figures.

The overall Mediterranean market remains solid due to climate, type of product & price range, as well as low cost carrier affordability. Whilst the Mediterranean islands of Crete, Cyprus and Menorca remain popular they are not seeing the same levels of overseas purchasers as other areas in Spain. The number of investors that flooded the Spanish market between 2001 & 2004 has reduced and with significant stock levels now nearing completion the number of re-sale properties available has risen to the lifestyle group of purchasers.

65% of Chesterton International’s clients that have bought in Spain have been second home purchasers wanting to use the property as a holiday home and as a long term investment. 25% of purchasers are investment purchaser looking for good rental yields. 10% of purchasers are retirement purchasers, in search of the sun.

80% of Chesterton International’s sales for Spain in 2006 have been in Mallorca, this is because of; the superb range of properties available to buy with good entry level pricing and a healthy price mix starting from £120k. Mallorca has smaller developments compared to the mainland giving a more exclusive feel. There are strict building guidelines as to what you can build, meaning a reduction of large scale developments. There is easy access from the island’s major airport and the island is a good golfing destination as well as having beautiful coastal areas, great beaches, food and culture.”

For more information, visit chesterton.co.uk/international.