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 In
Spain in 1986 a terraced villa
of average quality on the Costa del Sol, 300 metres from the
sea, changed hands for € 50,000 at that time, equivalent to
€ 360/m2. If we take into account average annual inflation (in
Spain) of 5% over 20 years, this villa (with the price adjusted
for inflation) would be worth € 125,000 in 2006, i.e. € 890/m2.
However, the rise in real estate prices has far outstripped
inflation. As a result, the current price of this property is
estimated at € 200,000, equivalent to € 1,430/m2. The capital
gain is around 400% over 20 years.
In
2006, Turkey has
applied to join the European Union. In the
Aegean region, 70 kilometres south of Izmir International
Airport, a European quality terraced villa, with a private garden
and 24h/24 security, a few hundred metres from the sea, sells
at € 700/m2,only half of
the current price on the Costa del Sol.
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