Spanish Holiday Home Market Seemingly on the Mend
News Posted On: 22 February 2012
It looks as if more owners of Spanish property will rent out their homes this year, as according to data the supply of holiday rental accommodation increased substantially during the last quarter of 2011.
Demand for holiday homes is still high. According to the U.K.'s largest rental website HomeAway Spain entered its top 10 for the first time last year. Booking enquiries for the country increased by 27% last year compared to 2010, with Malaga being the fifth most popular destination during the last quarter of 2011.
The rise in rental accommodation may be partially due to homeowners looking to rent out property rather than sell, due to the continuing tough market. Latest figures published by Tinsa show the value of Spanish property has continued to fall, and the average cost of buying a home in Spain fell by 6.6% year-on-year.
Major cities registered the largest declines of around 8.7%, and properties on the Mediterranean coast also lost about 8.1% of their value. In contrast properties on the Balearic and Canary Islands performed better with values falling by just 3.1%.
Property prices in Spain have fallen by around 25% since their peak in December 2007. However it does look as if property prices may have bottomed out and Spain has always been a popular investment option for Brits.
Developers in the region have noticed an increase in enquiries from overseas buyers. This is backed up by data from the Bank of Spain, which shows that money invested in property by international buyers grew 19.1% year on year in the third quarter of 2011.
View property for sale in Spain
Written by Les Calvert
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