Sun, Stability & Growth; Why The Spanish Property Market Is Hottest Destination For Overseas Investment In Europe

Sun, Stability & Growth; Why The Spanish Property Market Is Hottest Destination For Overseas Investment In Europe

What is it that makes Spain such an inviting destination for those looking to emigrate abroad?

Is it the climate, which, at its best, is the envy of the world?

In Andalucía, for example, it is warm nearly all year round; temperatures in Malaga, the gateway to the Costa del Sol, rarely drop below 10 degrees in the winter months and it is not unusual to celebrate Christmas in a T-shirt and shorts, maybe even enjoying a visit to the stunning Malagueta beach.

Perhaps it’s the lifestyle? Laid back, but with Latin passion coursing through its veins. The culture? You are never far away from a festival or celebration, either in terms of time or geography. The natural beauty? Spain is home to one of the most diverse ecosystems in the world.

The pastimes? Football, skiing, horse-riding, and dancing; even running with the bulls – for the time being at least, although the Spanish are beginning to rethink their tolerance for bloodsports.

Or maybe it is the fact that the Spanish property market is stable, safe, reliable and growing in value – more so than anywhere else in Europe.

According to data from Eurostat, quoted on Worldwide Group website, property prices in Spain are set to rise by an average 6.7% in 2018. This figure outstrips the rest of the Eurozone; forecast to grow at a rate of 4.6%; by more than 2%!

And it is not just Spanish holiday resorts; the likes of Sitges, near Barcelona, the Costa del Sol in Andalucía, and Costa Brava in the South East; not to mention San Sebastian; the Basque region party town on the north coast; that are responsible for prices climbing.

According to another property analyst; Tinsa; apartment prices in the Spanish capital, Madrid, and Valencia; from where you can catch a ferry to Ibiza which takes less than 2 hours; have risen 5% in January 2018 alone!

Records from Spanish land registers indicate that the number of homes sold in Spain has increased by nearly 15% over the last 12 months, and that 153,390 properties were registered in Spain in November 2017;  more than 18% higher than the same month in 2016.

Of course, Spain is not the only place those seeking a new life or an expat experience, or even a rental property investment should consider. In fact, higher yields can be found elsewhere; the Czech Republic, for example, Portugal and Ireland have all experienced double digit year on year growth in house prices recently; but these destinations can be unpredictable, with prices often as likely to drop as gain under adverse conditions.

In Spain, conversely, house prices have increased every year for the past four years, according to the Olive Press, a Spanish newspaper dedicated to expats. Spain’s property market suffered a massive correction after the global financial crisis in 2008, when house prices collapsed by as much as 30%, and thousands of properties were simply abandoned halfway through construction, leaving whole towns of new builds left empty. But the market has since recovered strongly, and there are plenty of resources, such as the finance bureau, and a host of stable banks offering mortgage solutions, available to make life easier for first time or inexperienced buyers.

The Spanish property market is booming again, and it certainly knows how to swing the led!

For those interested in the higher, luxury end of the Spanish property market, this interview with Lucas Fox co-founder Stijn Teeuwen makes for essential reading. Lucas Fox offers beautifully restored properties throughout Spain, ranging from affordable yet glamorous 1 beds in Madrid, Barcelona or Valencia city centre, to mansions in Mallorca and country villas in Ibiza and Andalucía.

Happy house hunting!

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