House price growth has remained strong in Spain and investors continue to flock to the country with the intention of making considerable returns, both through rental income and capital gains. As reported by the Spain Herald this week, average house prices are now higher than €6,000 (£4,146) per square metre in nine cities in the country, reflecting the rate of house price inflation nationwide. Referring to figures from the Tecnitasa property valuation firm, the publication indicates that Sevilla, Oviedo and Zaragoza have now joined the elite list that already includes Madrid, Barcelona, San Sebastian, Bilbao, Marbella and Santander.
Given the number of exciting developments taking place in the area, it is encouraging to know that Murcia is among the cheapest cities in the country, with properties available at €600 per square metre. Many property investors are hugely enthusiastic about growth in Murcia, with nearby La Manga already drawing in huge interest from golfing groups and families. Property prices are high around La Manga and rentals are also impressive and many predict the same trends for Murcia.
According to Typically Spanish, there is also the Corvera International Airport to look forward to, which will be operational from 2009. Ramon Luis Valcarcel, president of Murcia, predicts it will be used by one and a half million passengers during its first year of operation and that numbers will triple in the short to mid-term. New airports inevitably cause a domino effect in terms of investment, as visitors and business contacts invest in the surrounding areas.
Along the same lines, Ryanair has announced nine new routes from its base in Frankfurt Germany. Of the two going to Spain, one is to Granada and the other is to Murcia. Yet again, it can only lead to an increased number of tourists which in turn will boost rental demand and the overall value of properties in the area.
Set on the glorious Costa Calida and just two hours from Madrid, Murcia boasts stunning landscapes and is also particularly known for the quality of the local produce. While green fees and the general cost of living at La Manga are extremely high, the golf courses around Murcia remain fairly cheap, as are the properties that have been built around them.
With experts expecting the area to boom in the coming years, investors are already snapping up properties and the new routes and airport will only add to this high level of attention.