(1888PressRelease)
February 26, 2007 - A major survey by Royal Institution of Chartered Surveyors (Rics) earlier this month revealed that Spanish property grew by 11 per cent over the course of last year, and while this is four percentage points down on a highly successful 2005, this is still higher than the average UK capital appreciation of ten per cent.
Moreover, research published yesterday by the Spanish government showed that tourist figures were higher than ever before in January, potentially setting the tone for a record year for rental yields.
"Over recent years the market has experienced an injection of new life with the number of younger homebuyers looking to invest in a second home here steadily on the increase," said David Bexon, managing director of SmartNewHomes.
But it is not just the monetary gains that are attracting second home buyers still in their youth.
Mr Bexon added: "We have experienced a significant change in the age range of our client base, with many younger buyers now looking to purchase a new home, either to move into and live in Spain permanently or to purchase for investment purposes.
"Younger homebuyers with families view Spain as a safe and reliable destination and with no jet lag and an improving number of attractions geared to families, including water and safari parks as well as water sports it is proving increasingly popular with this buying group."
A further reason why younger people are becoming attracted to Spain in particular is due to the rapid pace of construction in the country. The construction sector of the economy increased by six per cent and local reports suggest that building is continuing at a high rate in the country.
This has meant that the demand for properties has finally been met with substantial supply, meaning that buyers now have much more choice in the market and can be much choosier about the homes they buy.
But the old favourite locations appear to be of continuing interest of British property investors.
Lisa Griffiths, European sales and marketing manager of Taylor Woodrow de Espana, said: "We have experienced a continued demand for new homes in Spain, with typical tourist locations such as Mallorca, Costa Blanca and the Costa del Sol proving ever popular with our clients."
