Modest value increases have been reported in prime Spain, despite the country facing financial difficulties in recent years. According to Abode2’s Edenhurst Financial Forecast for 2017, this growth is no longer limited to Barcelona, Madrid and other second home locations.
Spain’s economy is growing again, costs are low, and the property market shows strong opportunities for rental returns and capital appreciation – all of which suggest Spanish property offers investment opportunity and high sales volumes.
Brexit resulted in the Pound Sterling (GBP) depreciating, impacting British investment into Spain but the British still make up a fifth of foreign buyers of Spanish property. Furthermore, on top of the GBP uncertainty, the potential for Eurozone-wide insecurity due to upcoming elections this year could see non-EU buyers increasingly choosing to invest in Spanish property in 2017.
The Balearic Islands, a Spanish archipelago formed of Majorca, Menorca, Ibiza and Formentera are renowned for their Mediterranean climate, culture and cuisine. Majorca, the biggest island, Menorca and Formentera are celebrated for their beaches, coastline and abundant properties and development sites. Ibiza, meanwhile has become synonymous with high-net-worth individuals due to its combination of major nightclubs and rustic old towns.
Like the Balearic Islands, Marbella offers a relaxed lifestyle punctuated by super yachts and good food. Whether buying property as a holiday home or investment Marbella offers a welcome escape from busy schedules. Malaga’s international airport is only half an hour away, connecting Marbella with the world, hence travelling there for a break from business is easy.
Investing in Spanish cities remains a sturdy investment. Visitor numbers to Barcelona have soared with 32 million visiting in 2016 compared to its 1.6 million permanent residents. Development opportunity here is sizeable, Barcelona council increased its permit application acceptance rate by 50% last year and demand for new homes is predicted to double by 2025 .
Bar the residential opportunities Spanish real estate offers, there are immensely buoyant development and buy to let opportunities. Even with the predicted tourist slump after the Brexit vote, British holidaymakers travelled to Spain in record numbers in 2016 to the extent hotels struggled to keep up with demand, offering serious development opportunities in the tourist industry. The Spanish economy is predicted to grow at 3% this year and 10% of GDP is accounted for by construction, a huge number which suggests this is a real growth area.
Whilst package holidays remain immensely popular, villa rentals continue to offer valuable rewards for BTL and property investors and a steady investment opportunity. Spanish Bank’s repossession of houses in the 2008 Spanish housing crash means there are a sizeable amount of properties in prime locations for sale.
Long a favourite with European holidaymakers, the market shows few signs of slowing. If you would like to know any more about finding the right, bespoke solution for your entry into the Spanish real estate and development markets please do not hesitate to contact one of our expert brokers, we will be more than happy to discuss the perfect solution for you.