Insurance News Archive

Spain enjoys 'highest Euro property price increase'

Investors may find themselves drawn to the Spanish property market as it has seen the greatest increase in price of all countries in the Eurozone over the past five years, a new study shows.

Figures from the Halifax show that Spanish prices have doubled since 2002, outpacing every other country that has joined the single currency as well as the growth experienced in the UK.

However, this has not pushed properties out of the reach of the most investors as prices remain far lower than those in Britain, with the average home costing just £150,200.

Although growth has slowed slightly, prices are continuing to rise in Spain, but Tim Crawford, group economist at Halifax, pointed out that more recently properties other areas have seen prices soar, with homes in "Belgium and France recording bigger increases".

This is shown by research from the bank which shows that a home in Spain grew in price by 14 per cent in the last year, while properties in Belgium saw 18 per cent growth and French houses increased in value by 15 per cent.

Even though its position as the market with the highest price rises is under threat, Spain is still looking far more profitable than Germany which was the only country where prices fell, saw a drop in cost of five per cent.

However, canny investors may see this as a chance to snap up some bargains on the cheap with a view to greater profits in the future.

31 Aug 2007