1. Low Prices
After the 2008 recession, referred to here as “la Crisis” Spanish real estate took a significant tumble. According to this years data, the crises is now over and recovery is very much on. Property price increases are apparent in big cities like Madrid and Barcelona and that trend is now starting to spill over into coastal towns, especially in sought after areas in and around Marbella
2. Economic Growth
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 labour market. Growth remains much higher than that in the Eurozone overall, thanks to tourism and exports thriving. Unemployment has fallen from a 27% high in 2013 to 18% in April 2017, and likely to drop during the summer boom months. Positive moves in employment means higher gross disposable household income. The national budget deficit is reducing and 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. Spain’s economy has staged an impressive turnround over the last few years after being one of the most badly-affected countries during the financial crisis.
Spain is one of the most popular tourist destinations in the world. July 2017 surpassed all existing tourism records in Spain. Never before have so many foreign visitors arrived in the country in a single month: 10.51 million, compared with the previous record of 10.02 million, set in August of 2016, according to the National Statistics Institute (INE). The July record comes on the back of a year-on-year rise of 10.1% in tourist arrivals. This has a direct impact on the strength on the holiday rental market.
After surveying thousands of vacationers in popular destinations, the INE found that all forms of accommodation are on the rise, but most particularly holiday apartments which rose 23.2% for tourist apartments.
This demand offers a fantastic opportunity for those wishing to invest in property for holiday rentals. Short term rentals to tourists, is a far more profitable route to long term leases. That coupled with the benefit of having a personal overseas holiday home, provides enough incentive for the smart investor to buy property in Spain.
4. Strong potential for price increases
Whilst other markets such as Germany and the UK are already at the peak of property prices, Spain has plenty of room for increases in both rentals and sales. For investors this means there is plenty of Capital Growth opportunity over the coming years. This also means that purchases should be made, sooner rather than later to take full advantage of the gains potential.
5. Value for money
You get a lot of bang for your buck in Spain. Food, transport, housing, and services are all very reasonably priced. Also, good for business, labour in Spain is 25 % cheaper than in the rest of the Eurozone.
6. 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 January 2017 against the previous year. This demonstrates that Spanish lenders are keen to lend to non-residents and overseas investors.
7. Excellent geographical location
The door to Africa and the Americas, and gateway to the Mediterranean. Spain is in a very privileged location. It’s also a member of the EU. In a globalized economy, geographical location plays an important role in business. At this level, Spain is one of the best places in the world to invest.
8. Quality of life
Spain is consistently rated by foreign residents as having the best quality of life in Europe. Aside from the weather. Spain has one of the best healthcare systems in the world, a rich cultural history, great food and over 8000km of coast and great beaches.
9. Improved quality and professionalism
New buyers entering the market are finding an amazing number of new projects for sale of a substantially higher quality than in the past. A more sophisticated, experienced and caring developer has arrived. Bucking the pre-crash trend, new developers are keen to give excellent value for money to their purchasers and invest more time and effort into producing properties of a superior quality. This offers significant rewards to the buyer and developer alike. Developers with projects underway are enjoying much more interest from buyers and substantial success in sales as a result. Buyers are finally receiving an increasingly broad choice of top end properties with an incredible range of luxury features, prices and locations.
10. Automatic residency for homebuyers
Spain offers residency permits to non-EU nationals in return for an investment of €500,000 in Spanish real estate. This is known as the ‘Golden Visa’
If you like many others are interested in investing in property on the Costa del Sol, start your journey search now by clicking here, or contact us today for more details