Investment Property Growth & Forecast

According to 'The Economist' in October, the second quarter of 2006 saw property prices increase in Spain at an average of 10.8% per annum. Although, this is lower than the 13 or 14% increase last year, this should be compared to smaller gains in the UK at 6.9% per annum. There is still good, solid growth in Spain, some areas increase at higher levels than others too. Stately Investment's policy is to construct only in areas increasing at above the average rate.

It is clear investors are still making solid returns in tourist areas that are easily accessed through cheap flights. The growth of provincial airports supplying flights to new locations is having a direct impact on the property market and creating new mini hotspots for the discerning investor, e.g. direct flights to Almeria from the UK have dramatically driven a new demand for this area. In addition, low cost flights have recently been announced to Spain in the near future from Ryanair (Liverpool to Seville, and East Midlands to Granada) and Clickair (Heathrow to Seville and Barcelona) all good news to our investors in Spain.