On The Up

There are predictions that those who invest in the Spanish property market now, could be reaping rewards by 2010.

There are a number of positive indicators over the last few months that the market is on the road to recovery. until recently, prices were, on the whole, heavily inflated with oversupply in some areas, and it didn't offer the right kind of investment potential to feature on the radar. But now, there are forecasts of a 2.5% to 3% growth on 2009 prices for property next year,
Part of the reasoning behind the predicted 2.5% growth comes from the logistics of property cycles. A newly awakened interest in property on the Costas means that oversupply will be consumed and availability reduced. Add to this the fact that new construction is virtually at a standstill with no major projects planned for the near future, the Costas property market should clearly bottom out this year and next year herald the start of an upward cycle.