WHY INVEST IN THE SPANISH REAL ESTATE MARKET?
After many years of economic decline, to invest in property in the Spanish Market is very attractive to investors and families from other countries. Here are the reasons why:
- Improved Quality and Professionalism – New buyers entering the Spanish Real Estate Market are finding an amazing number of new projects for sale of a substantially higher quality than in the past. New developers are keen to giving excellent value to their purchasers and invest more time and effort into producing properties of a superior quality. Unlike properties build 15+ years ago, developers now focus on quality rather than quantity. New homes are now characterized by large open-plan living spaces and individually designed floor plans to suit the needs of the international buyer. They are energy efficient, saving the buyer money in both heating and cooling season and will be hassle free to rent out given the new laws requiring properties to fulfill strict health and safety regulations. New developments provide key-ready, fully installed, luxury living spaces, often finished according to your specifications. The developments are financially secured, guaranteed and risk-free. New developments provide key ready, fully installed, luxury living spaces often finished according to your specific selections. The developments are financially secured, guaranteed and risk-free.
- Attractive Borrowing – Spain´s property market is a far cry from the fragile bubble that existed before the financial crisis of 2008. Increasing government regulation of financial institutions and more effective regulations on banks and lenders has prompted a culture of financial safe practice. Base rates continue to fall in the Eurozone and currently sit at an all-time record low. Mortgage rates in Spain are now cheaper than ever. In addition, lending by the banks increased by 17% in 2017 compared to 2016. And, 2018 is trending for a record-breaking year! This demonstrates that Spanish lenders are keen to lend to non-residents and overseas investors.
- Property Prices Increasing – Much like the economy, Spanish property sales are on the rise. After seven (7) years of falling house prices, the market has now returned to pre-recession levels. Banks are predicting record property sales in the coming year. With confidence back in the market and demand steadily growing once again it’s inevitable that prices will increase. Current prices are still far from their 2006 peak, but sales volume is back to pre-crises levels.
- Rental Income Potential – After surveying thousands of holidays makers in popular destinations, we discovered that all forms of accommodation are on the rise, but most particularly, holiday apartments, which rose 23.2% for tourist apartments. This has a direct impact on the strength on the holiday rental market and fantastic opportunity for those wishing to invest in property. Spain is the world’s 3rd most popular holiday destination. The latest data show that more and more holiday makers are choosing self-catering apartments over hotels on the Costa del Sol. Demand is high, with tourism figures on the Costa del Sol breaking all records in 2017. More properties are needed to cater for this demand. Holiday apartment booking command prices of 400% more than the monthly long-term rentals over the summer months, making it a valuable asset for homeowners. Many homeowners look to buy a property that gives them both an overseas holiday home as well as the highest possible return on their investment. There can be a conflict between these two goals; but, our experienced real estate managers deal with these scenarios on an everyday basis; and, can present your properties which covers both aspects. An average two (2) bedroom / two (2) bathroom apartment purchased for €250.000,00 Euros on the Costa del Sol can bring a rental income of approximately €20.000,00 Euros per year (based on 26 weeks occupancy). It can easily cover the cost of finance, with mortgage rates at an al time low. Also, it is an investment in a market heading upwards which offers a greater reward compared to funds kept in low interest rate savings accounts.
- Positive economic climate – The outlook in Spain is looking sunny in more ways than one. As of April 2017, Spain has shown 14 consecutive quarters of growth. The economy has recovered well since the government implemented a series of reforms including overhauling the banking system and reforming the labor market. Growth remains much higher than that in the Eurozone overall, thanks to tourism and exports thriving. Unemployment has fallen and will continue to fall. Positive moves in employment means higher gross disposable household income. The national budget deficit is reducing; and, the GDP is positive. Major international funds are investing hundreds of millions of Euros into the purchase of development land on the Costa del Sol. With historically low-interest rates, investment in land and development promises investment yields far greater than that obtainable elsewhere. After many turbulent years, Spain is emerging from the global recession with strength and stability. Property prices are more realistic and growing steadily and modestly. Spain has learned a great deal from the boom and bust years and is making more cautious moves to avoid a repeat performance. The vote of confidence represented by international investors and developers serves not only to ensure well-planned, higher quality properties; but, also a major attraction for investors and individual buyers, generating market confidence all around. The economy is demonstrating all the right signs of a stable base in which to buy a property in Spain.
- Beat the Winter Blues – With this year’s holidays very much at the forefront of mind, there is no better time to get away from the cold, harsh winters and head to SPAIN! Spain ranked as the world safest, cleanest and cheapest holiday destination so treat yourself to a break from it all! The winter weather is glorious on the coast (very mild, not cold at all) and this brings visitors and potential property purchasers in abundance. Those who are in the market to purchase a winter home would not be disappointed in their choice of Spain!
We will assist you in every step of the way in finding the home of your dreams in Spain, your new paradise! Fill out the form below and we will ensure that you have high-quality choices!