Seanest - Jan Van Parijs Properties

Why the Spanish Real Estate Market is Back on the Map

Spain’s economy is on the rise, and its property market is a sought after destination for real estate investors. Without any doubt, the Spanish real estate market should be a top choice in your international property portfolio for those buyers looking to invest abroad.

 

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Spain’s economy is on the rise, and its property market is a sought after destination for real estate investors. Without any doubt, the Spanish real estate market should be a top choice in your international property portfolio for those buyers looking to invest abroad.

Its spectacular outdoor lifestyle, world-class amenities and lower buying prices are major attractions for British buyers. Spain’s pleasant climate makes its possible for your clients to enjoy a well chosen prime property, holiday home or retirement residence all year round; while buy-to-let investors can maximise their return on investment by renting to holidaymakers most months of the year.

The Spanish real estate market is viewed as a sensible investment destination due to escalating housing costs in Britain and the pound’s strong buying power. Smart investors are purchasing property in the Mediterranean, especially in popular coastal regions such as Costa Blanca, because the climate is favourable and it’s a profitable buy-to-let option.

While the lifestyle and buying price sounds appealing, you’re probably wondering about economic sustainability and how to effectively market an unfamiliar market to potential buyers. Here’s why it’s not just the sunny weather, but also the sound financial climate that makes Spanish property so appealing:

 

Steady Growth

 

Spain’s real estate market has promising potential. The last time Spain’s property market experienced exponential growth was between 1996 and 1997 when the average house price skyrocketed by 117% in real terms. This unprecedented growth represented one of the highest house price growth trajectories on the European continent.

During that time, the Mediterranean coast had the largest upswing, with 155% growth. This golden era brought a flock of home buyers to the Spanish real estate market looking to expand their property portfolio and amass wealth. Of course, a decade later the 2008 financial crisis hit and the housing market crashed.

Initially,  immense financial losses made investors sceptical to re-enter the property market. However, in recent years Spain has made a steady recovery, property transactions have increased, and investor confidence has returned pointing towards a steady growing upswing.

 

The Local Economy is Rallying

 

The current index from the Spanish Ministry of Housing Department shows a favourable 1.8% increase in house prices last year. This is the first time the index has been in positive territory at year end since 2007, just before the crash.

In addition, quarter-on-quarter growth is also optimistic. In the last quarter of 2015, the index rose to 1490.10 EUR per square metre, up from 1476 EUR per square metre in the third quarter of the same year. Positive economic factors indicate the Spanish real estate market is back on the map, making it one of the most competitive locations on the European continent.

 

The Return of British Buyers

 

Market research indicates British buyers are a driving force in Spanish property sales at present. Interestingly, research conducted by the College of Property Registrars reveals that foreign demand accounted for a whopping 13% of the market in 2015. Your potential buyers – expats and non-residents – are purchasing more than 1 in 10 properties currently sold in Spain.

Their research results also show that foreign demand for Spanish property is growing faster than local demand. The overall demand rose by 11% during 2015 and 12% in the last quarter, while local demand only increased by 7% in the same quarter.

Any real estate agent looking to grow their business and client’s wealth would be missing out on huge opportunities if they negated the Spanish property market. Positive growth and high demand make it a lucrative long-term investment for you and your buyers.

You can learn more about how to turn your leads into clients by downloading our guide, How to Market the Spanish Properties in Your Portfolio. At Seanest, we specialise in the Spanish property market, helping our agents expand their international property portfolio. Have a look at our charming property for sale in Costa Blanca to get you inspired. 

 

Image credit:pexels.com 

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