Perhaps it’s the low cost airfares from northern European countries to Spain (budget airline Ryanair currently has an Uncle Sam-like ad campaign stating “This Summer Spain Needs You!”) or the great deals on accommodation, whichever it is, according to research conducted by Holiday Lettings (UK) Spanish property is still dominating the European holiday rental market. Spain, primarily the Canary and Balearic islands, represents 70% of Holiday Lettings’ Index™ 2012 Hot Spots.
With Spain’s economy teetering on the edge of disaster, property prices are at an all time low and threatening to fall further. Spain’s Mediterranean “Costas” are saturated with overdevelopment resulting in bargains for investors. According to Holiday Lettings, “As long as the property is well-situated and the realities of the holiday let marketplace have been considered then owners should also be able to get a decent rental return on the property.”