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Land laws could raise Spanish property prices
Land laws could see the price of Spanish properties rise by a tenth, benefiting anyone who has invested in a home there.
Although the intention was to reduce prices, the Association of Spanish Property Developers (APCE) claims that the Spanish government's proposals will have the opposite effect.
Under current proposals, developers must hand over between 15-20 per cent of land which has been classified for urban use.
With land making up 40-60 per cent of a property's construction costs, according to the APCE, less land up for grabs will mean higher land prices. This rise in costs will be passed on to the property buyer.
The law was brought in to stop property scams and make it even more sound for overseas investors to buy a home.
Despite the worries that prices could affect investment, 999 today says that Spanish house prices rose by 10.8 per cent last year.
Looking to buy Spanish property? Then keep up to date with the latest news and other information on homesgofast.com.
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