(1888PressRelease)
July 14, 2007 - The Spanish property market remains resilient, despite reports about a crash in the sector or claims that Britons are put off the idea of buying a home in the country because it is becoming saturated by expats.
However, a survey by GE Money Home Lending found that many property market insiders still believe the Spanish real estate sector has the potential to bring great returns for all sorts of buyer: those buying a holiday home or retirement property or investors with buy-to-let portfolios.
In a poll by the lender, Spain came out as the most popular destination for those wanting to buy a home abroad. More than a third of respondents said they would consider investing in the country's property market, with the Spanish climate, low house prices and cheap travel options among the main attractions.
Holidaymakers are also still flocking to the country from Britain, which creates an ideal opportunity for buy-to-let investors. Maxine Harrison, the founder and owner of villa rentals firm Elysian holidays, said Britons are presently "trying desperately" to escape the weather in the UK.
She added: "I expect there are an awful lot of people sitting around thinking: 'Why on earth did we decide to go to Cornwall this year?' … Spain will always win out from that point of view." In addition, it is often cheaper to go on holiday in Spain than it is to holiday somewhere in the UK, according to Ms Harrison.
Spain offers sunshine, warm seas and cheap food, she added, predicting that it will "be a while" before Britain's beaches can compete with what is on offer in Spain. In addition, Spain has so many beaches that there are more options available to property buyers than to have no choice but to buy in highly developed areas.
"You've got other areas like the Costa de la Luz up and coming, where there are huge swathes, miles and miles of deserted beaches. It's Atlantic and it's windy, but people will put up with that for the privacy," Ms Harrison explained, adding that the Costa Brava is also gaining in popularity among property buyers.
And house prices in the country are expected to rise strongly during 2008, with Spain still tipped as the best option for long-term property investment in a poll of independent mortgage brokers by GE Money Home Lending.
The lender reported a belief among respondents that alongside France, Spain offers "the most solid investment", beating off competition from emerging markets. "It is the constant trend of the British desire to move to Spain that secures the western European market," the report stated.
It added: "Britons would do well to stick to tried and tested countries like Spain, France and Portugal when considering a foreign property."
