See:
http://www.in2perspective.com/nr/2007/09/s...arket-crash.jsp
re: Spain braced for housing market crash
By Andy Grant, Staff Writer

Published 7th Sep 2007, (a Friday) at 12:00AM

Read and enjoy.
I have property over there but the mortgage all paid off. I will be happy to see price falls of 50% or over. The youngsters in Spain need to be given a chance to get on the property ladder!!! Many Brits are going to lose a great deal of money if they don't sell up quickly.

This is the 3rd thread on this subject today.

I've heard that property prices near the planned bullet station in Malaga increased by around 10% in the last 3 months. (Bullet train service will bring travelling time from Madrid to Malaga down from roughly 5 hours to 2.)

I haven't researched this, but thought would ask if anyone had heard anything on this. I realise house prices on the costas are plummeting, just wandered if there was a small pocket bucking that trend.

Not that I know the Malaga end, but Spanish infrastructure projects have a habit of overrunning ever so slightly so I doubt it would make any difference until way after prices start rising again naturally.
(If they ever do)

I bought a villa in Calpe 3 years ago, 5 beds split into 3 apartments, sea views. Its gone up by £250k in value. Smaller properties in the area are going for double what we paid. We rent the villa throughout the year and are fully booked usually April - Nov. The market in Spain is def not slowing down, we turn away bookings daily, you can still get great deals on the Costa Blanca.

I would be interested to know what you base you £250k increase in value on. If it's asking prices in your neighbourhood then it is doubtful that this has any bearing on reality.
Whether values have gone up in your area or rental demand is high I cannot say, my knowledge is limited to the Malaga/Cadiz area.
Here prices have fallen dramatically, especially if you take inflation into account. While some properties are showing reductions in asking prices in real terms of 20-30% from the highs of 2003 (and still not selling), some people still live in a dream world and keep putting their prices up, no matter that the property stock has not shifted in years. I guess that they do this in the knowledge that there is a one in a million chance that some sun-stroked brit will offer them the asking price.
The building continues, the newer structures resemble the film "The Shining" -such is the lack of inhabitants. The structures of two or more years look tatty with cracks in the brick work and rust on the iron grills and gates.
Summer was quiet here, slightly busy in August, but that was all -even the miserable summer in the UK wasn't enough to send the sun seekers to the Costa del Sol.
So, well done 'surrey-investor' if you have had such a good result, but there are no positives in the South.
Would it be cynical of me to suggest that the fact that you call yourself an "investor" must mean that you are an estate agent, or have vested interests at the very least?

I know Calpe well - I have friends who have been EAs there for years - and know of no villas that have gone up by the amount you suggest in the last three years. It's actually one of the least attractive towns on the North Costa Blanca.