Those Headlines like "Spanish property owners in panic" sell newspaper copies. We've been here (Spain) for over eighteen years and nobody we're aware of is having any panic attacks. Because of the popularity of Spain over the last thirty years there are two distinct property markets, domestic and foreign, unlike France, Italy, Ireland or the UK where you could reasonably expect to sell your house to either a Local or an imigrant.

These two property markets have happily co-existed side by side, very few locals buying into tourist areas and very few Foreigners buying into Spanish areas. Only three times in the past thirty five years has there been any upset when due to either oil crises or over development, prices fell for a short time.

After the Millenium things began to change in the real estate sector on the Costa's, introduction of the euro, currency and property buying from the new states from the old USSR and eastern Europe, much lower interest rates, banks flush with money to lend and middle aged people releasing equity out of their UK properties to fund their investments all combined to fuel the biggest growth in holiday property building ever been seen on the Costa Blanca and Costa Del Sol. This was further driven by the collapse of traditional investment vehicles such as insurance policies, pension funds and stock markets with investors looking for a safer bet for their funds.

The domestic property market in Spain carried on oblivious to all this and carried on rising by 5 - 10% per year whilst the foreign investment market went into orbit with rises of 20 - 30% every year. Recently we've had over five years of huge growth in this market with developers and investors making fantastic returns.

Some of the newspapers led on the crash of real estate developers funds on the Spanish Stock market with some major developers losing up to 30% of their capital, what they failed to point out is that for the last decade they have been making up to 72% every year.

What is happening is a readjustment in the Spanish real estate market. The investment markets and the local domestic market have to get a little closer to each other that's all. Property buyers and owners who are in for the medium term will see a rapid return to normal growth, remember that property ALWAYS HAS BEEN and STILL IS the best medium or long term investment. Short term blips may give the press some ammo but can never affect your medium term property investments.

Some investors will get their fingers burnt (thankfully none of our customers) but then some people seem to behave like lemmings or sheep rushing towards the clondike with no real knowledge or because John from the pub invested so it must be a good bet. Maybe a particular area is trendy... (remember Provence and Tuscany?).

This will happen also in other "emerging" markets such as Bulgaria, Romania, Northern Cyprus, and the Baltic states. I was employed as a consultant in most of these markets ten years ago and then was investing time not 2007. Watch out for the newpaper property sections headlines in a couple of years, "Life savings gobbled up in Turkey" or "Couple lose holiday home in scary bulgary"

So property owner in Spain? Here's my advice - Get yourself a bottle of Jumilla Red (Finca Luzon, relax, enjoy the sunshine and stop worrying - We are talking about property here and Spain has made 20% pa for the past 33 years despite these period hiccups and will always continue to.