Spanish property investment rises by 19% in the first half of this year

We have all read or heard about the many recent reports about how the Spanish property market is on a downslide, but recent figures from the Bank of Spain show otherwise. The banks figure show that in the first five months of this year, Spanish property investment rose by a staggering 19.2%, as compared to the figures for the same period of 2006. Foreigners invested 2.252 billion euros in Spanish property up to the end of May.

Some say that the 19.2% increase in investment could be due to the fact that those who bought properties off-plan during the period 2004 and 2005 are only now taking possession of their property and that these investments are now being recorded in the national accounts when the new owners sign at the notary.

But surely this has a rolling effect – that the off-plan properties sales made during the period 2003 – 2004 would have been incorporated into the figures for May 2006 - so the figures for May 2007 show an actual increase?
It could be argued that the figures seem to show that there still is a great demand for Spanish property investment and that Spain still continues to be the No 1 place for foreigners to invest their money.

We only have to look at how the properties are selling on the new developments that are taking place in Spain at the moment. Investors still see the great profit potential in these new projects and are snapping up the properties. The association of Spanish developers (APCE), in an article in the Spanish daily ABC state that almost all of the 1.6 million new properties built in Spain over the last 3 years have already been sold! Now that to me, certainly doesn’t show a slow down in the Spanish property market!

Article Source: http://www.real-estate-article-directory.com

Rest Assured Properties specialise in the sale of off-plan properties in the Murcia region of Spain. Visit our website www.simplymurcia.com to find out more about Spanish property investment

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