Bargains that Costa lot less

According to many sages, the Spanish property market is a bad news story just now. The boom years are over, the credit crunch has struck, prices are down, some property firms have gone out of business and others are struggling.

In the midst of all this, one might imagine that the time to invest in Spain has passed, that the returns have gone and it is time to up sticks and leave.

For some of those who have sold up already, not recently but between March 2004 and December 2006, there appears to be some very good news as it has been widely reported that the Spanish government's application of a 20 per cent capital gains tax premium on properties sold by foreigners - including Britons - contravened European law. Thousands of people could get back an extra £11,000 each in a class action brought through the courts by currency exchange firm HiFX.

While those investors are set to coin it in, however, the opportunity to make money - in a more conventional way - still exists against expectations, according to a report by international estate agents Engel Volkers.

Their report into the Spanish property market has pointed to a number of positive investment locations, such as Malaga, the Balearics, Tarragona and Girona, reports Homes Worldwide.

While the latter two locations are tipped as emerging hotspots, Malaga is seen as the best location due to the influx of new investment, both in terms of construction and the wider economy as a number of international businesses arrive.

As regards the Balearics, the report suggests the Canaries could offer the "greatest potential" over coming years, adding: "Easy accessibility, guaranteed winter sun destination, plenty of coastline property and unique countryside provide instant appeal to Europeans from colder climates."

While Engel Volkers argues that there are still plenty of places in Spain property that will beat the gloom, the way the country's market - or at least parts of it - has seen a decline may itself bring benefits, according to Propertyinspain.net, a network of English-speaking property professionals.

Chief executive officer Terry Walker explained: "Overall the property market in Spain is as strong now as it has been for the last decade in terms of the prices providing better value for money. There have been falls of around 20 per cent and in the last six months it has switched to be a buyers' market."

This buyers' market, he added, offered a situation where the cost of buying and running a property has "never been lower".

As the Engel Volkers report makes clear, the market in Spain is changing. But such a transition, it suggests, will see Spain emerge from an adjustment to a different economic picture with its popularity intact. While investors may not necessarily have some nice tax surprise materialising in a few years, the new - and possibly different - opportunities appear to still be there.

In today's world Property investment is an excellent investment option especially investment in UK

Jim Barnaby is a real estate investment broker and successful property investment adviser delivering research and selected UK and overseas property investment solutions with experience in spanish properties, french property investment, German property, Cyprus holiday homes, Property in Cape Verde, German property investment, cape verde property buy to let property