Spanish sales down again

Property sales in Spain plummeted 24.4 percent in February from a year earlier, according to official data, in yet another sign of the sharp downturn in the once booming real estate market.

The fall is slightly less than the 27 percent decline reported for January. In February, there were 55,462 urban property transactions, a drop of 10.2 percent from January, the National Statistics Institute said.

The total for the first two months of the year is down 25.85 percent compared to the same period in 2007.

The figures were further evidence of the decline in the real estate market that began in early 2007 after years of growth during which millions of new homes were built and prices rocketed.

The housing ministry announced this month that house price gains in March fell below the inflation rate for the first time in a decade. A study by the Asprima real estate association forecast property prices will fall on average by 8 percent this year.

The Spanish Property Owners Guild said some consumers' confidence in the country has declined and blamed negative media coverage. However, spokesperson Paul Bradley insisted that all markets tend to go through "peaks and troughs".

Bradley believes that the fundamentals which support the Spanish property market, such as its easy accessibility and year-round-weather, will ensure that it remains a hotspot for British property buyers. 'Spain will continue as a popular venue for both holidays and second home ownership,' he added.

One thing that is set to keep the country attractive to property investors is the number of flights, many of them low cost. LTE International Airways will begin offering flights to Norwich International Airport from Alicante, Palma and Barcelona in July.

This is a significant development for consumers who live in the Norfolk region, as it means Spain is now far more accessible. As a result, it is likely that the new destinations will attract an increased number of visitors this year, thereby boosting its rental market.

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