Is a Spanish property purchase a good investment?
SPANISH PROPERTY PRICES PEAK 06/12/03 Banks forecast market stabilisation in 2004 A report issued by the BBVA bank this week forecasts a 17 per cent rise in property prices by the end of this year and a stabilisation of prices in 2004, when increases will be up by 10 per cent. The report coincides with figures released recently by surveyors TINSA, showing that property prices at the end of this year will have increased in line with 2002 – an average 14.5 per cent increase in new property prices and an 18.6 per cent in second hand property for the whole of Spain. BUBBLE ALERT FADES The increasing demand for property despite the considerable rise in prices has dampened warnings made by experts and official entities that the Spanish market is suffering a ‘property bubble’, which they claim will see prices plummet and leave the industry in crisis. A recent report shows that property prices in Spain increased by a staggering 284 per cent between 1987 and 2002 and by 91 per cent between 1997
