A Guide to Investment Property Spain
Considering its beautiful costal areas, breathtaking mountains, incredibly active cities and thriving expatriate community, it is little wonder investors still love Spain. The country’s well-developed property market is more than holding its own, and its tourism industry continues to boom.
Spain’s natural attractions, stable environment and thriving expatriate community all make investment in Spanish property attractive. We at Nubricks.com cite the following 10 reasons as those that are keeping investor confidence high with regard to investment property in Spain: -
1) Spain’s Stable Political Atmosphere Makes it Very Attractive for Property Investors, Retirees and Expatriates
Whilst Spain did have its share of turmoil in the past, the country’s stability since the 1975 death of General Franco has been impeccable. The constitutional monarchy is run with King Juan Carlos I as the official leader. The National Parliament with its Congress of Deputies and Senate is elected democratically every four years. Spain’s strong political standing and its stable status make it very attractive for investors who are sheepish about newly established governments. The Spanish and UK governments are on very good standing with each other, which also bodes well for stability and investment prospects here.
2) Spain’s European Union Involvement Makes it Welcoming for Investors, Holidaymakers and Immigrants
Spain’s long-standing involvement with the European Union lends to its credibility as an investment destination. The government has been active with the EU since the 1980s. It is also active in a host of other international organisations, such as the United Nations and NATO. Spain’s involvement on the worldwide political scene keeps it in the spotlight. Plus, investors here know the country has the backing of the EU, which is a fantastic confidence booster.
3) The Incredible Spanish Property Market Offers Promise Even in the Face of a Global Downturn
The Spanish property market is legendary for its growth potential and ability to draw international interest. At its highest peak in the early 2000s, investors here were appreciating growth in value of up to 20% per annum. Whilst the growth rate has slowed in the face of worldwide economic concerns and the development of other investment markets, Spain is still of high interest to investors. Buyers here are now adopting buy-and-hold and buy-to-let strategies. Growth is still a very promising 6% per annum in prices in many areas and rental yields tend to remain strong, especially in the hot holidaymaking area along the Costas.
4) Spain’s Use of the Euro Makes Investments Here Easier for European Buyers
Spain’s use of the euro makes it much easier for investors, holidaymakers, retirees and expats to handle their money in Spain. Whilst Britons still face exchange of currency, most other European investors do not. The euro’s overall strength, too, bodes well for the Spanish economy and the EU as a whole.
5) The Sustainable and Interesting Tourism Industry is Great News for Property Investors in Spain
From Barcelona and Madrid to the balmy Costas, Spain’s tourism industry is strong and continuing to grow. The World Travel & Tourism Council estimates the Spanish tourism industry will generate about EUR 225.4 billion in 2007 alone. Growth is expected to continue at a rate of 3% per annum through to 2017. With a whopping 4.3% of the world market share in travel and tourism, Spain’s position as a hotspot is well assured. This is incredibly good for investors looking at buy-to-let potential, and even for those looking at catering to the holiday home market. Even with a downturn in property price increases, investors here can still find plenty of potential.
6) Spain’s Incredible Sights, Geography and Climate Make it a Favourite Among Investors, Holidaymakers and Expats
From the ancient sites of Toledo, Barcelona and Madrid to the Costa del Sol, Spain’s unique attractions, diverse geography and welcoming climate have long made it a favourite for investors, holidaymakers and expats. The country itself borders Portugal, Gibraltar, France, Andorra and Morocco. In addition, it has a generous amount of Mediterranean and Atlantic coastline. Its landscape ranges from incredible beaches to the beautiful rises of the Pyrenees and Sierra Nevada mountains. Considering its geographical diversity, Spain is also known for a rather wide range of climates. Whilst much of the country enjoys a mild continental climate, the southern region experiences quite balmy Mediterranean temperatures year round. The choice of landscapes and climates makes Spain very attractive to investors, holidaymakers and expats alike. The country literally has something to appeal to almost anyone.
7) The Ease of Buying Property in Spain Makes this Investment Hotspot Very Attractive for Buyers
Spain has long been a favourite destination for foreign property investors. Considering this, the availability of UK mortgages and other amenities should come as no surprise. In most cases, buyers find the process for buying is quite straightforward, and the taxes are considered reasonable. Whilst many buyers choose to hire local representation to help them navigate the language barriers in making a purchase, the presence of so many potential UK lenders on the Spanish market gives rise to a great deal of confidence in the market and the buying process.
8) The Ever-Growing Expatriate Community Helps Make Spain Very Attractive for Real Estate Buyers
Spain’s population includes an estimated 760,000 Britons. As those numbers continue to grow, holidaymakers, investors and new expats find the atmosphere in this country is generally quite welcoming. The large expatriate community is good news for investors that want to appeal to British buyers or holiday renters with their investments. Plus, the presence of Brits throughout the country helps make this destination very attractive to retirees, expats and holidaymakers who want to soak up the Spanish sun while still enjoying British traditions, language and camaraderie.
9) Economic Stability Makes Spain Very Attractive to Property Investors
Spain’s economy isn’t necessarily booming, but it is more than holding its own globally speaking. The country’s overall economic stability is very encouraging for investors that seek environments that are on an even keel. The county’s EUR 904 billion GDP is growing at a rate of 3.4% per annum. Its inflation level is quite low at 3.4%, as well. Major industries in Spain include tourism, agriculture, construction, wine and textiles. Basically Spain has a good economic foundation upon which a property investor can choose to rely.
10) Easy Access and Low Cost of Living Make Spain a Desirable Location for Property Investors, Holidaymakers and Expatriates
Direct, low-cost flights to Spain are a staple throughout Europe. With so many holidaymakers keeping demands high, getting to Spain is generally no trouble at all. Add to this the relative low cost of living – especially when compared with the UK – and the attraction for investors, holidaymakers and immigrants is quite clear.
Spain’s legendary Costas, its incredible historic sites and bustling cities make it a favourite for investors and holidaymakers alike. Whilst the country’s property market isn’t quite as shiny as it once was, many investors are still finding Spain offers more than its fair share of potential.
