Is Spanish property still a viable investment?

There has, understandably, been a huge focus on Brexit recently. While much speculation has been said about how the UK will fair, what does this mean for our European counterparts?

Graham Davidson
2nd May 2017
Graham Davidson

Spain’s recovery has been phenomenal over the last two years which has filtered through into the property market.  Much of the property recovery only started to happen when we saw prices rising around 12-18 months ago and whilst there was some initial concern as to whether Spain would bounce back to its former glory, it certainly seems like the appetite is back with a vengeance.  

As buy to let investors constantly seek new ways to expand their portfolio, we answer the questions on whether Spain is still worth the buy:

Are house prices still rising?

It’s no secret that Spain’s property prices took a little longer to pick up following on from the economic crisis. The UK certainly saw recovery faster than other areas of Europe, however Spain is definitely back with a bang. While house prices are increasing by as much as 5% according to recent figures, they’re still nowhere near their pre-crisis levels just yet, which is great for any Brits looking to bag a bargain property before prices continue to grow.
 
Does property demand remain high across the country?

At Sequre, we saw a 118% increase in the number of our overseas sales in 2016 so we’re confident that buyers and investors alike are still flooding into the Spanish property market. Areas in particular such as Costa del Sol and Costa Blanca have always remained tourist hotspots for a number of decades and although the financial crisis did see a dip in overall demand, a thriving economy and strong property market presents a positive outlook for the future.

Are there new homes on the way?

As we reported last year, construction is booming across Spain right now with millions of euros being poured into the country as a means of boosting the economy and continuing to attract overseas buyers as well as local ones. Anyone who has visited the major towns and cities of the Costa del Sol, Costa Calida and Costa Blanca will see the large number of cranes in the air and the number of new builds around. It’s extremely promising to see, and restores the faith of anyone who remains in doubt of Spain’s remarkable recovery.

Where are the safest areas for investment?

When looking overseas for buy to let, it’s important to carry out all your research and due diligence before embarking on your property search. Location is key and there are a number of areas that are worth considering and have proved successful for many investors in recent times. Cities such as Marbella and Alicante are ideal for investors seeking a tried and tested investment choice, as blue flag beaches and a desirable climate sees sun-seekers looking for property all year round.

Those looking for something different may want to consider the up-and-coming area of Mijas – located in the Costa del Sol, this town is currently seeing a lot of activity from new buyers; prices remain affordable but rental demand and yields are continuing to grow. 

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