The time to buy property on the Costa Blanca

April 09, 2009

Official figures say properties along the coastline have seen their prices drop by up to 14%, the first fall after six year of considerable rises - in 2003 prices increased by 21.6%.

Average prices per square metre of new and resale homes in Alicante province have dropped to 2,083 and 1,938 euros respectively. The price in Valencia province now stands at 2,106 and 2,015 respectively and in Murcia at 1,900 and 1,765 euros.

This means a new 100-square-metre home costs just over 208,300 euros, on average.

Figures contrast with the 5.3% rise reported in 2007, when the end of the property boom began.

The society of property surveyors says that 2008 saw a general fall in property prices throughout the province and predicts further falls this year, although not as severe.

Another factor that could encourage buyers is the fall in bank interest rates.

Yesterday the European Central Bank's (ECB) dropped interest rates to 2%, the lowest in the ECB's short history.

The reference rate is expected to fall even more if the general economy shows no improvement.

The Euribor rate (used by most banks to set mortgage repayments) has this week dropped below 2.7%, its lowest since December 2005.

Last week, in another move to fight recession in the UK, the Bank of England dropped the rate to 1.5%, the lowest set by the Bank since it was established in 1694.

For an extensive choice of new and off plan property for sale in Spain on the Costa Blanca and Costa Calida, visit the Novocasa website.