prices in spain continued to fall but luxury property performing better
News Posted On: 25 October 2011
According to the house price index from Tinsa, average residential property prices have dropped by 7.4% during the last 12 months to the end of September. The data from one of Spain's largest appraisal firms showed that large cities are experiencing the sharpest falls, with prices down 8.9%. Price drops were also seen along the Mediterranean coast where most holiday homes are located, and it's estimated that prices of coastal homes have dropped by between 24.1% and 31.9% from their peak.
However it's not all bad news as there has been a considerable increase in the number of foreign buyers looking for bargains. Data from the Bank of Spain shows foreigners invested €1.3 billion during the second quarter of 2011, which is 16% up on the first quarter and 37% better than the same quarter last year. Even though foreign investment is still 32% less than at the peak of the market, the last two quarters have seen considerable improvement.
Property with sea views is still performing strongly, and there are five times more enquiries for this type of property then for inland homes. This demand has led to a huge disparity between coastal and inland prices, especially in the ever popular Mallorca, which attracts buyers with large budgets looking for prime property. It's hardly surprising such buyers are looking for coastal property, as much of Mallorca’s appeal is centred on its coastline. The area is renowned for its luxury yachting industry and has several prestigious marinas -- it is also a popular port of call for cruise ships.
View property for sale in Spain
Written by Liam Bailey
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