Property investors shouldn’t overlook Spanish Costas in favour of new markets, say property developers planning to exhibit in London next month.

The developers hotly dispute recent reports that high levels of house price growth in Spain mean that the property market is set to follow the downward trend as seen in the UK market over the past year.

With an expanding economy, high employment and excellent infrastructure the Spanish market is still very strong, suggesting that high yields are achievable and investors shouldn’t dismiss the traditional Costas in favour of the less established emerging markets of Eastern Europe.

Despite negative publicity of a ‘property bubble’ causing prices to increase to levels comparable with those in England, good low-end investment properties can still be bought for around €150,000.

"Even though property is cheaper in emerging markets, for reliability and stability of investment income, more mature markets such as Spain still stack up brilliantly against the competition," comments Stuart Law, managing director of Assetz, a property investment specialist company who will be exhibiting at The Property Investor Show.

According to Stuart, capital growth in Spain is high and still forecast to grow at 10% a year for the next five years at least. Off-plan purchases at discounted rates still offer the best opportunity to maximise profits. Year-round sunshine and the extensive development in recent years of world class golf courses, makes 30- 35 weeks annual rental a realistic goal, with potential gross yields of 10 % plus.

Along with stable macroeconomic conditions, including the availability of cheap, long term credit, Spain still offers excellent market conditions and guaranteed yields. With over 13 million UK tourists visiting the country each year, and an increase in foreign investment in Spanish property from under 200 million Euros a month to 600 million Euros a month, the boom looks set to continue for the foreseeable future.

James Barnes, general sales manager of Livingstone Estates, also exhibiting at the show, believes that Spain will continue to offer good investment opportunities, despite adverse publicity: "The Spanish Costas are still incredibly popular among tourists and investors alike. The Costa del Sol in particular provides good all year round rental opportunities, with the typical beach holiday in the summer and golfing breaks in the winter."

"Across Andalucia, we have seen prices rise by as much as 15% over the past year. At the moment it’s still very much a buyer’s market, with investors being able to get good deals on property and securing reductions on asking price of around 10-15%."

Chris Wilson, marketing director at John Macdonald Properties Ltd, another exhibitor at the show, comments: "Spain is one of the most economically stable members of the European Union, with the freedom of labour and capital movement creating the right environment for holidaying, retiring, emigrating and investing in Spanish property. Coupled with the warm climate and low cost of living, Spain tops the polls every time."

Nick Clark, managing director of The Property Investor Show, comments: "Despite emerging property markets creating a real buzz at the moment, traditional markets like Spain are still incredibly popular among visitors to our shows."

"With low cost airlines leaving for Spain throughout the day, good infrastructure and an established year round rental market, there is no reason to suggest that the recent reports that the market is set to crash are true. However, we would encourage any potential or professional investors to research the market and get advice from a professional before they commit."

The Property Investor Show will be held from Friday 23 to Sunday 25 September in the heart of London’s docklands at the ExCeL centre. The show will feature around 200 exhibitors specialising in all areas of property investment both in the UK and abroad, with over 30 focusing on Spain. A full seminar schedule will provide further expert advice on a range of subjects.

For further information on the Property Investor Show visit www.propertyinvestor.co.uk