Is the Gold Rush Over for Investors in Spanish Property?

The spanish property market has boomed over the last couple of years, but can it continue? Peter Jones, chartered surveyor and property investor explains the reasoning behind the boom and how to analyse the current market for growth opportunities.

(PRWEB) May 28, 2005 -- In some areas of Spain, property prices have rocketed by up to 25% during the first half of last year, with off plan properties yielding high returns for investors.

With many investors entering the market from across Europe, and a staggering 53 million tourists visiting Spain every year, is this golden success story set to continue?

On a national level, it's difficult to envisage the whole market maintaining such high growth rates, but as with any large market, there are always investment opportunities.

So, how do we find these opportunities?

Try breaking down the market into definable geographic regions, and analyse them separately (see the map above). Then look at the local trends and influencing factors that may (or may not) drive market growth.

So what factors/trends should an investor look out for?

5 key questions to ask..

If you're not sure where to start when analysing an investment region, here's a brief list of useful questions to ask yourself, agents and developers.

1. Is this a new investment region, or is the market already inflated by years of investment?

2. Are new airports being built or new airline routes being introduced into the region to deliver more tourists?
e.g. Easyjet has begun routes into Costa del Almeria, and a new airport is being built at Costa de la Luz

3. Is there a sound infrastructure to allow tourists to move around the region?
e.g. There's a new motorway linking Gibraltar and Cadiz, servicing the Costa de la Luz

4. Is the government investing in the region?

5. Is the area being marketed by travel press/hotel chains to bring in new tourists?

If you find positive answers to these questions, then you may find the area's well worth further research.

You can find further information, free of charge, on my website.

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