A quarter of the two million Brits who own property abroad now own it in Spain and one in three of us are keen to retire there, according to a recent survey by Kyero.com.

Of the 400 respondents, the majority wished to permanently relocate, with 26 per cent viewing Spain as the ideal retirement destination due to the warmer climate, sociable atmosphere and lower taxes.

The most popular regions were Alicante, Granada and Malaga – sought-after due to their warmer climates – while Lanzarote and Gran Canaria were seen as less desirable.

Spain has certainly proved itself to be a country worth investing in. Although the rise in property prices has slowed in recent years it is still steadily increasing, with the national average rising by four percent since last year. In some areas of Spain, property values are still increasing at a high rate – in Girona average prices rose nine per cent from 354,000 euros in September to 385,000 in October.

For those hoping to invest less capital in the country, however, there are still cheaper options. Jaen remains the least expensive province, with average property prices hovering around the 76,000 euro mark.

But the most lucrative investment may well be Granada. Ryanair, the low-cost airline, has announced a new route between Nottingham East Midlands Airport and Granada, due to start next February. The airline plans three flights per week, making Southern Spain even more accessible to tourists and British property owners.

"We feel that this new low cost route direct from the UK will positively effect both the tourist and the property markets of Granada," comments Christina Sanchez, aministration manager of Spanish property agent 1 Casa. "From the magnificent Moorish Alhambra Palace to the traditional white-washed villages of Martos, Alcaudete and Alcala, the Sierra Nevada ski resorts to the while sandy Mediterranean beaches, Granada and Jaen province really have something to offer everyone."

If you are considering investing in the Granada area, Eden Villas is offering a new inland development. Senorio de Cubillas benefits from a lakeside location, providing residents with all types of water sports. It offers three types of townhouses, built-in terraced blocks of five to eight properties.

"We are recommending Senorio de Cubillas as the best new inland development we have seen, and in recent years there is a trend towards more inland sites", says Craig Stocks of Eden Villas.

In easy reach of Granada, a 45-minute drive from the Sierra Nevada slopes and backing on to a forest which offers a range of outdoor pursuits, Senorio de Cubillas comprises properties ranging from £175,146 to £245,069 in price.

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Read other articles about Spain:
Undiscovered Spain
Property market slow-down in Spain?

Article first published 31 October 2006