The total number of property transactions recorded in the Spain property register – Spain's equivalent of the UK's land register – fell from 989.341 in 2005 to 916.103 in 2006, an annual drop of 7.4% in unit terms."This is pretty depressing reading for anyone trying to sell property in Spain, though it might cheer up buyers," said Mark Stucklin of website Spanish Property Insight.

The more popular regions, with 100,000 property transactions, saw significant decreases in unit sales: The Andalucia region of Spain seeing a reduction of 7.3 per cent, Catalonia 8.8 per cent, and Valencia 8 per cent. However, the largest falls affected regions of Spain with smaller property markets: Cantabria seeing a drop of 16.9 per cent, Aragón, 15.7 per cent, the Basque Country 15.1 per cent, Galicia 11.8 per cent and Extremadura 8.8 per cent.

Nationwide, resale property transactions fell by 4.97 per cent to 526,509 units (57 per cent of the total), whilst completed transactions on newly built properties fell by 10.11 per cent to 389,594 units (43 per cent of the total). It appears that the demand for newly built property in Spain is falling whilst the numbers of this type of property being built in the country hits new records. "That the property boom in Spain is coming to an end is beyond doubt; no boom lasts forever, and this one has had a great innings, with ten consecutive years of property price increases," Stucklin commented.

"The economy in Spain has become a bit of a property junkie in the boom years, so a dose of cold turkey to get off the 'bricks' and re-balance the economy would be no bad thing. A downturn might catch short-term property speculators with their pants down, but the rest of us will benefit from a healthier economy in the medium to long term. I'm confident that buyers of quality property in Spain for long-term personal use have nothing to fear from this market, and if anything, should see it as an opportunity."

Developers are now having to think of new ways to attract overseas property buyers into the Spanish market, as the lure of investment potential in property in Spain diminishes.

One such original property development idea is Monte Aledo Resort, a large CentreParcs-style dome surrounded by a huge national park which will offer year-round entertainment for thousands of people living around it.

The 10,000-square-metre dome, containing sporting facilities, entertainment, restaurants and shops, is being built in Murcia. With a sophisticated temperature control system, the dome will keep holidaymakers cool at the height of the summer and warm during the winter. Residents in the new resort, next to the natural Sierra Espuna Park on the Costa Calida, will also be able to enjoy a huge lake. Other facilities include a pharmacy, 24-hour medical facilities, a multiplex cinema, a spa centre, a fitness centre, a nine-hole golf course, horse-riding facilities and an Olympic swimming pool.

"We have a pre-release offer of 20 per cent discount on Phase One," Edwina Silver, Director of Premier Overseas announced recently. "This means a typical one bedroom apartment is currently just £65,215.

"The rental option is fantastic because this resort has no rival.  It means investors can buy at non-costa prices, but enjoy all the perks of what will be a really fun place to be, while they watch their property value really rise." 

Apartments in the development have access to communal swimming pools and come with fully fitted kitchens and all white goods, plus granite worktops. Fitted wardrobes in bedrooms, safes, alarm systems, private car parking spaces and air conditioning come as standard.

This first phase is being built on a natural slope and many apartments will have panoramic views of the lake, a nearby medieval village and the mountains. "It really is a stunning site," said Silver. "But its just 30 minutes from sandy beaches at Mazzaron and only 35 minutes from the airport.

"It answers all those past criticisms that many people have voiced, such as little entertainment and nothing to do but lounge by the pool. This is not the Spain of old, where there was little to do it if was too hot or cold; this is the new Spain, listening to both its residents and overseas visitors and giving them what they want."

The dome itself is scheduled to be completed by April 2010. Apartments in Stage One of the first phase will be available from October 2009 through to early 2010.

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Related articles about property in Spain:
Property in Spain: Prices outstrip budgets
Golf property options in Spain
Why buy property in Murcia?

Pictured: Murcia Cathedral, courtesy of Tour Spain

Article first published 11th April 2007