Capital growth was averaging an amazing 25% per annum between 1997 to 2004 for ‘off plan’ property during the construction stage and around 14% for existing property. The boom years may be over for now, but there is still a lot of money to be made by investing in Spanish property. Although there are an abundance of properties in Spain for sale, this is very much a buyers market, and the ideal time to bag a bargain. Property in Marbella, including villas, townhouses, penthouses, re-sales and new developments is being sold up to a third cheaper than it was 12 months ago.

Golf front and beach front property in southern Spain can now be found at incredibly low prices, and off plan investments in the right area are still making good profits for investors. Just west of the Costa del Sol lies the unspoilt Costa de la Lutz where property sales are booming, and investors are flocking to buy off plan apartments, villas and townhouses.

 Add to this the fact that letting a furnished property should also cover the mortgage costs and generate a profit. The superb weather and abundance of golf courses gives property owners all year round letting potential.  Many Northern Europeans simply go to Spain to escape the harsh winter. Flights to Spain are plentiful and cheap and the flying time is only just over two hours from the UK.  Around 1 million more Europeans are expected to retire to Spain over the next few years, as the cost of living is cheaper compared with other EU countries. The huge UK community in Spain is without equal in any other European country and the number of UK services and businesses ensures that this trend will continue for a long time. 

In short, the reasons given above still illustrate plenty of demand for Spanish property that should result in continued price rises.  Perhaps the most amazing aspect is that only a deposit on a property will secure you capital growth on the full property value.