The official Spain property price index from the Department of Housing shows that the average price of a home in Spain fell by 3.5 per cent last year. However, in reality Spain property prices have fallen by significantly more – creating lots of bargain opportunities in the process.
The latest figures from the Department of Housing show that property prices in Spain fell by 3.5% to 4.5% year on year in February. This latest fall means that prices have dropped by just over 13% since their peak, while the cost of property in popular holiday resorts such as the Costa Blanca have dropped by 20%.
The Balearics and Canaries have fared much better during the past year as prices here have only dropped by 0.8% while in the large cities this fall is 5.2%, rising to 6.7% on the Mediterranean coast. Prices in the Balearics and Canaries have dropped by 17.5% since their peak which compares to 20.6% in the large cities and 27.2% on the Mediterranean coast.
The holiday home market in Spain, which has witnessed a spectacular crash in the past four years, appears to be improving, according to Spain property analyst Mark Stucklin.
“There are definite signs of improvement”, Stucklin wrote on his blog. “I can tell you that I am seeing real signs of improvement.” ”The [Spanish holiday home] market is still depressed compared to normal times, and very depressed compared to the insanity of the boom, but some things do seem to be getting better. Quality property in all price segments is selling at the right price. Demand is more diversified than ever.”
The latest signs show that this decline should soon begin to reverse as Spain is becoming more popular for tourists and for property investors looking for a bargain. This has already been reflected in the number of flights to Spain as Monarch Airlines is increasing its flight programme from April due to the growing demand.
It has added additional flights to Malaga, Alicante and Majorca. There has been huge demand for flights in April which may be due in part to the lateness of the Easter holidays combined with the extra-long May bank holiday weekend, as it would seem many Britons would prefer to celebrate the Royal wedding abroad.
Monarch Airlines announced that bookings April are already up 49% when compared to demand in 2010. It’s likely that increasing numbers of Britons will choose to holiday near to home as the austerity measures begin to cut into holiday budgets, which is all good news for those with homes to rent.