Whilst much of Spain is feeling the heat of a major slowdown property prices in the Andalucian city of Jerez are going up.

As much of the Spanish property market is starting to falter, the Andalucian city of Jerez is one of the few exceptions.

While many areas of Spain are currently experiencing a major slowdown in the property market, prices in Jerez are only going one way, and that's up.

"When the Spanish property market started to falter in 2007, Jerez was in a very strong position," said Chris Mercer, director of Jerez property specialists Mercers.

"According to figures from Spain's leading property portal, Fotocasa, price per square metre in Jerez was 46 per cent cheaper than the national Spanish average and a mammoth 76 per cent cheaper than the nearest-neighbouring city, Cádiz.

"In spite of adverse market conditions, Jerez clearly had some catching up to do and the potential for capital growth was obvious, thus keeping the local property market buoyant.

"As we continue through 2008 the effects of a global economic downturn and less favourable exchange rates are of course presenting various challenges, but Mercers is experiencing a steady flow of buying activity both from overseas and domestic customers. With a thriving rental market and under-valued prices, Jerez is still very much a shrewd mid- to long-term investment proposition."

Most famous for being the spiritual home of flamenco, the birthplace for sherry, and centre for Andalucian dancing horses, Jerez is looking forward to a dynamic future.

The city's international airport, already served by daily Ryanair flights from the UK is being improved to include a new runway, enlarged terminal building, plus more parking and is expected to serve four million passengers annually by 2012 (up from 1.4 million in 2006).

Crucially, Jerez airport will become the only Spanish airport, with the exception of Barcelona, to have its own AVE (fast train) connection. The AVE will bring Seville, currently a 45-minute drive or an hour's train journey, within reach of Jerez in just 20 minutes, opening up the possibility for Sevillanos to commute from a lower priced, less congested city.

With affordable entry level prices and a clear exit strategy selling to commuting Sevillanos, Madrileños or international clients keen on a holiday home, retirees who want an authentic Spanish experience within 15 minutes of the coast or taking the buy-to-let route and renting to visitors to the city (hotel occupancy is as high as 85 per cent all year round), Jerez’s property market is the envy of Spain.

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