Property prices to go up 10% this year

With Spain having the best economy in the Eurozone last year, property prices are set to increase a further 10% over 2006.
The Spanish economy grew 3,4% last year, while the Gross National Product of the Eurozone increased by 1,3% while the European Union (25 members) was 1,6%.

According to the bank La Caixa, property prices are still set to increase by almost 10% this year due to the relative good value of the Euribor which is the rate by which mortgages are worked out.
With new mortgages coming out all the time this market is becoming very competitive and with more and more people buying in Spain prices are set to continue rising.

Valencia, still being relatively undervalued in comparison to the rest of Spain and the other main cities, has the most to gain. Add to this the improvements being made to the city in terms of culture, infrastructure and the America`s cup and Valencia is now presenting itself as the next Barcelona.