Spanish property showing no sign of soft-landing
Research carried out by the Royal Institution of Chartered Surveyors (Rics) suggests that even developed property markets in Europe are still experiencing strong growth.
There had been predictions that some markets, like the UK, were overheated and would begin to soften. However, most markets still experienced double digit growth during 2006.
Despite showing a slight dip from 2005, the Spanish property market, for example, still showed strong growth of 11%.
Many lenders declined to pass the effects of European Central Bank interest rate rises to mortgage borrowers, which helped to keep the sector buoyant, with experts suggesting that a trend for large properties may be driving the market.
Milan Khatri of Rics said: "Fears of a considerable house price slowdown in what are considered over-heated markets of the UK, Spain and Ireland, once again proved to be quite off the mark of actual developments."
Spain has traditionally been a popular country for UK investors looking overseas, and with the average house price at home breaking the £200,000 barrier for the first time, interest in the popular holiday destination is not likely to abate.
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