Navigate Your Way Around Spanish Real Estate: How It Works
Real estate in Spain has been recently soaring to greater heights. If you’re not investing in it now, you are sorely missing out on a lot of real estate opportunities.
Thanks to the country’s recent economic growth, the progressive revaluation of properties, the increase in rental prices and boom in tourism, real estate is now one of the most sensible investments to make. Despite the allure of the growing industry, the Spanish property market still has plenty of quirks.
It pays to do your research before you invest in Spanish real estate to make the most out of your time and resources.
The State of the Spanish Property Market
After eight years of house price declines, Spain’s housing market experienced growth during the first quarter of 2016. By that time, house prices have fallen by a total of 46.9 per cent (inflation-adjusted estimate) from the fourth quarter of 2007 to the third quarter of 2015. Spain experienced 31 consecutive quarters of annual declines.
In 2018, house prices rose by 6.49 per cent to €1,493 per square metre — the biggest rise the country has seen since 2006. During the year’s first eleven months, home sales rose to 10.6 per cent to 481,220 units from the same period in 2017. The demand continues to rise strongly.
Foreign homebuyers contributed mostly to the increase in transactions. They bought homes on the Costa del Sol and in cities like Barcelona. Most of the international buyers are French, Britons, Germans, Belgians, Swedes and Italians.
Make The Most Out of Your Search
The numbers do not lie. Real estate in Spain will be a fruitful pursuit for individuals who know their way around the market. Make sure you are one of them by keeping the following in mind before you invest in Spanish real estate:
- Choose a property based on your investment objective. Should you buy to rent or buy to sell? The type of property you wish to buy will change according to your investment vision. If you are looking for short-term rentals, look for furnished properties with one or two bedrooms or vacation rentals. A well-distributed, 2- or 3- bedroom, on the other hand, is an excellent option for long-term leasing or sale.
- You also have the option of a holiday rental, which provides higher income compared to traditional rentals, as well as guaranteed payment in advance.
- Prioritise well-established areas. The best places to look for properties are in consolidated neighbourhoods with affordable prices, good transport links and high demand for rent. Also, invest in university areas and business centres to ensure constant demand. You may also buy a property in the middle of the central business district, but the initial investment will be more expensive.
- Buy properties that are in good condition. In the case of rentals, keep in mind that your property must always be in good condition to attract tenants. Look for places that are in good shape or easy to renovate. Should you renovate later, make sure the property’s purchase price is low enough.
The Spanish property market is flourishing and will continue to thrive in the years to come. Make sure you’re part of this growth by investing in it. Let Fangdi Services Ltd help you maximise your return on investment. Call us at +44 (0) 20 7509 1771 or send us an email at email@example.com.
It is our mission to offer a unique level of personalised service from the very first call, to your first instruction and way beyond. We will be by your side while your investment grows, offering the dedication and attention to detail that your property portfolio demands.Dieter VanagtmaelManaging Director, Fangdi Services Ltd