Saturday, July 01, 2006

To some, Spain is a version of Blackpool - chips and cheap beer heaven, with sun to boot.

To others, it is the height of sophistication, with its fine Riojas and wonderful food. But to those who buy property in Spain, the country is just one big investment. And what an investment it has been, with research from Mintel showing that Spanish property is doing exceptionally well, abetted by the strength of the euro.

The increased availability of cheap, regular flights to dozens of venues in Spain has also had a markedly positive impact on property prices, according to Parador Properties, which covers "the whole length of the Spanish coastline", according to director Jack Hamilton. According to Parador, prices are moving ahead rapidly in the area served by Murcia airport.

"Properties near Alicante have done very well, and we've seen strong growth in the Costa Calida, near the Costa Blanca. That's a direct result of air travel bringing easier access," says a Parador spokesman.

The British are buying into Spain in ever greater numbers. Many see their investment as an alternative pension plan, as the high charges, stealthy tax increases and general complexity of "normal" pensions can be off-putting. Others point to a unique benefit of committing capital to a house or flat: it's just about the only investment you can live in.

Marry those two lines of analysis together and you end up with a boom market in buying property in locations all along the Spanish coastline. Industry estimates put the number of homes owned by British citizens at 750,000 in spain, compared to 500,000 in France, the second most popular country for investors.

Demand has long been high in the Costa del Sol, according to Angelique Todesco, a director of the Majestic property company: "Marbella is 12 per cent-owned by foreigners, mainly British investors," says Ms Todesco. Majestic develops and sells properties to a mainly British client base, and numbers television celebrity Simon Cowell among its clients. t.

Read more in Telegraph
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