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4 Reasons to Invest in Spanish Real Estate

4 Reasons to Invest in Spanish Real Estate

05 01 - 2017

The charm of southern Spain and the uncomplicated lifestyle of the Mediterranean have not changed over the centuries. With over 300 days of sunshine a year and a deep blue sky in all four seasons, there is a reason that many people want to exchange the ice cold winds of the north with the warm breeze of the Mediterranean in the south. But there are other reasons. Following one of the worst economic crises in Spain, the bursting of the real estate bubble in 2007, there are still very favorable conditions at the real estate market to make investments.

1) Low prices after the crisis
The prices have fallen for 7 successive years in Spain since the collapse in 2007, and especially the real estate market has had to make difficult corrections during this time as the prices fell between 30 and 50%.

Still, the prices are between 35-45% on average lower than peak. A recent report in a Spanish emergency service confirms that prices have stabilized in Spain and that this has been exceeded and now is really the time to invest in still high-quality properties at a significantly reduced price as the stock is becoming less and less becomes.

2) Prices are on the rise
Due to the continuous development in economic conditions and also the growing confidence and demand of foreign buyers, prices have not only stabilized in most regions, they are in the popular areas like Barcelona and Madrid and in coastal regions such as the Costa del Sol Also already risen again. Not to mention, that one of 5 properties sold is sold to foreigners. In Andalusia, the house price index has changed annually by 2.99% with an increase of 19.36% for sales to international buyers. The increase in property prices in Spain is the third in Europe. This was supported by the confidence of investors and increased sales in the best areas in the country.

3) Credit approvals have risen
Hand in hand with the economic recovery is the possibility of obtaining a loan. As demand and sales rise, Spanish banks are now more open to lending to builders and the costs have been greatly reduced. A recent report by Bloomberg mentions that the Spanish banks have regained confidence again after a period of instability, and this has made it easier for local and international investors to invest again. The construction industry has recovered by lighter lending, and the Spanish real estate market will slowly return to its former glory.

4) High potential when buying for rent
Spain has excellent infrastructure and is rich in natural and cultural attractions and has the most competitive tourism industry in the world. This has been mentioned in a recent global report of the World Economic Forum. It has also been mentioned that Spain is the third most visited country in the world. With some 60.6 million arrivals annually and the positive potential for further growth thanks to the current influx of tourists from the emerging markets such as China, Brazil and Mexico.

Tourism in the popular tourist resorts such as the Costa del Sol contribute to the fact that properties that are bought to rent are profitable. Alone in 2015, tourism on the Costa del Sol has brought in € 11.5 trillion, while a record visitor number of 10.2 million visitors could already be registered in 2014, an increase of 4.3% in 2015 already 10.6 million.

For many years, visitors have looked for hotels and hostels in their desires. Cheap flights, the availability of a variety of flights to different cities and the Interenet have revolutionized the holiday experience. With a variety of new accommodation facilities available, especially the demand for apartments has increased. For the holidaymaker, this means a higher standard of accommodation and a lower financial burden and for the investor who has bought to rent an increased potential for the investment, especially in the presence of increased demand from tourists.

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C/ Pintada 81
29780
Nerja (Málaga)
  • MARION LANGENSCHEIDT
  • C/ Pintada 81
  • 29780 Nerja (Málaga)
  • +34 952523061
  • +34 654053799

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