In2Perspective

Prices of resale homes in Spain are rising faster than those for new-builds for the first time in a decade, as ex-pats go in search of the 'Real Spain' inland areas in preference to the booming coastal locations.

New home prices in Spain rose by 16.19% last year on average, according to the latest figures from the Spanish College of Registered Homeowners but used or second-hand homes increased by 17.35% while new houses or apartments went up by 14.5%.


Analysts said the increase in prices showed a cooling in the housing market, but it was still very healthy and they highlighted the last quarter of 2004 when prices rose by 3.5% on average.


Member banks of the Confederación de Española de Cajas de Ahorros (CECA) are forecasting equity growth of 12% for 2005 and 2006 and their UK property partners, online specialists, Property in Spain, claim this level "is good for the market as it keeps Spain competitive in the booming second homes market, now competing with Bulgaria, Coatia and other East European locations."


Added a spokesman for the firm: "We have a growing number of registered buyers seeking only 'real' Spain inland locations and we plan to offer a further 8,000 of these over the summer, mainly in the Costa Blanca, Costa Calida and Costa Almeria."


"However, a lot of British buyers are missing out on the best buys as the Spanish are getting their viewings and offers in before them - not always the case on the coasts where domestic buyers are often priced out."


The CECA banks, who between them hold 68% of all mortgages in Spain, confirmed that second-hand or used homes were the most popular section of the market, adding up to 57% of transactions.