Investment Property in Spain

Investing in property abroad seems to be all the rage. And with significantly lower prices, a better standard of living and some excellent investment opportunities, why not!

This year’s emerging hot spots include: Budapest, Dubai, Morocco, Estonia, Saint Vincent & the Grenadines, Barbados, Thailand, Brazil and Australia.

Older more established markets like Spain and the Canary Islands are still going strong, despite the recent market “crash”. Both still have excellent long term potential.

One of this year’s most talked about emerging markets is Cape Verde, located just off the north west coast of Africa.

Cape Verde Investment Property
Often called the “New Canary Islands” Cape Verde, with its year-round tropical climate and stunning beaches is set to rival the Canaries tourism trade.

Experts agree that Cape Verde is one of the best locations worldwide to invest in property if looking for a good Return on investment. Property prices are still low but as soon as Cape Verde becomes a mainstream holiday destination they’re expected to increase drastically.

Santiago, the largest Cape Verde Island and home to the country’s capital city (Praia), is set to become the world’s new luxury tourism destination. The island’s new airport will no doubt facilitate this.

According to Jonathan Grepne, Managing Director of a Cape Verde based development company; “The opening of the new airport puts Santiago on course not only to become a popular tourist hub, but also to offer imaginative British property investors an excellent financial return, and a high-quality environment for their personal enjoyment”.

Spanish Investment Property
Over the past 10 years property prices in Spain have increased by over 200%. “At the height of the construction boom in 2005 there were 7,000 estate agents on the Costa Blanca,” according to the Daily Telegraph.

But the bubble burst. It couldn’t last forever – it was only a matter of time. In the second quarter of 2007, the rise of property prices was below the rate of inflation for the first time in 10 years.

So, is the crash a good or a bad thing?
Well, both really. For anyone who owns property in Spain, they could see their property values falling as the market struggles. Get-rich-quick investors will certainly be hit hard and will probably end up offloading their properties at a loss.

On the other had, a crash is also an opportunity for you to buy in low! Spain has again become a buyers market because of the sagging market and anxious sellers. Buyers can negotiate with sellers and developers who are anxious to offload their stock in exchange for cash. There are some great bargains about and the market has an excellent long-term forecast.

It’s also a wonderful place to live, so anyone buying for personal use will find this market more attractive than those interested in the short term.

Spain is unquestionably one of the most popular vacation spots in the world – it was ranked ninth this year (2007). Despite the recent property slump, it’s likely to remain a popular destination for years to come and offer excellent potential as a place to own a home or vacation rental property.