Before investing in a Spanish property of your own, it is important to understand the current state of the Spanish property market. One must also undertake to research the various regions of Spain to identify what area would best suit your investment needs.
Spanish Property Market
Because the full impact of the pandemic on Spanish property prices is yet unknown, it’s only able to present a broad picture of what’s going on in the market. The Global Property Guide’s pre-pandemic investigation revealed average property expenses per square meter for 14 of Spain’s 17 autonomous regions.
According to data from Expatica, average property prices in major cities increased by 5% in the third quarter of 2019, while properties in the Balearic and Canary Islands increased by 11%. San Sebastian, Barcelona, and Madrid are the most expensive cities in Spain to buy-in. Despite massive development, cheap property values have yet to reach historical highs, so even budget purchasers will have room to maneuver.
Some regions dominate the Spanish property market. In 2020, the Mediterranean coastal provinces, as well as the Balearics and Canary Islands, accounted for 60% of all purchases in Spain. This is where the vast majority of international buyers go. That has been the case for years, even throughout the post-2008 recovery.
Top 10 Reasons to Buy Property in Spain
Spain as a Global Tourist Brand
A successful tourist brand can be used by anyone wishing to rent out their property to cover operating costs or invest in buy-to-let properties.
Cost of Living
Despite its high standards of living, the cost of living in Spain is fairly low. As a matter of fact, it is one of the cheapest countries in Western Europe.
Property Prices are Still Low
The Spanish real estate market peaked in 2007, and then underwent a huge drop never seen before because of the global financial crisis. The market was in a state of flux, and it didn’t recover until 2014. Despite massive development, cheap property values have yet to reach historical highs, so even budget purchasers will have room to maneuver.
Variety of Spanish Regions to Choose From17 distinct regions, all of which differ in terms of cuisine, history, festivals, sometimes language, and frequently traditions, are perhaps the best example of diversity. Foreign property sales are dominated by Catalonia and Valencia region, which includes well-known destinations such as Costa Brava, Costa Blanca, and Alicante. Purchasers also flock to Andalusia and the Balearic Islands. Whether you’re not sure where you want to buy in Spain, it’s a good idea to learn about each location first to determine if it meets your needs.
Family Life & Safety
Spain ranked above average for work-life balance, safety, and community when the OECD examined happiness and well-being in the world’s 34 main industrialised countries. Spain is a safe country to buy a home in, thanks to low crime rates and a strong ex-pat community.
Climate
Imagine 320 days of sunshine every year! We all know that the sun is beneficial to our health, but what does this mean for homebuyers? You can live a healthy, active existence in the great outdoors.
Diversity of Spain
Spain excels in all it does, from food to health, leisure, shopping, sports, and nature, thanks to its diverse culture and customs. Landscape panorama varies from big cities like Barcelona and Madrid to little getaways like Costa Brava and Costa Blanca. As a result, property purchasers can research a wide selection of locations to see if they fit their lifestyle.
Healthcare
The World Health Organization ranks Spain’s single-payer healthcare system eighth-best in the world. Aside from prescription pharmaceuticals, the system provides universal coverage as a constitutionally guaranteed right with no out-of-pocket costs.
Great Transport & Year-Round Flight Schedules
If you live in Spain, getting from one place to another is really easy, whether you’re traveling inside the country, within Europe, or further abroad. With the United Kingdom, France, and Germany as the top three property buyers, it’s simple to see why they prefer Spain to other countries. Year-round airline schedules, clean and efficient airports, and inexpensive tickets make a quick weekend escape possible at any time.
Incredible Beaches
A beach lifestyle is a popular choice among retirees. With 5000 kilometers of coastline, Spain has enough to offer. Within this, 566 blue flag beaches offer the cleanest and most environmentally-friendly recreational opportunities. A total of 98 marinas and five ports obtained blue flag accreditation. If you want to live by the sea, Spain is the best area to start your quest.
Purpose of buying a property and what will you use it for?
So, you’ve decided to purchase a property in Spain, but why? Writing down your ideas might help you motivate and direct yourself by analyzing and clarifying your views. Determining what you will use the property for is essential if you want to get the most out of your property. What are your plans for it? Long weekends, three weeks throughout the summer, for investment, relocation, vacations, and then retirement?
Where to Buy Property in Spain
Spain has something to fit every style and budget, from modern seaside apartments and luxury villas to rural farmhouse renovations. Because Spain offers such a diverse range of locations and property types, we are confident that you will be able to locate the ideal property. It’s simply a matter of determining what you require, how close you wish to be to a town or stores, whether you wish to drive or not, and how much your overheads will be. To assist you in making your decision, we’ve compiled a list of the most popular regions of Spain and explore the various unique locations where you can purchase property and the benefits each area brings.
Catalonia
Catalonia, with Barcelona as its capital, is the region most closely related to north-eastern Spain. It is noted for being Spain’s wealthiest region. Fashion and design, fashionable cafes, Almodovar flicks, and paintings by Gaudi, Picasso, Dali, and Miro abound. It is recognized for sports, particularly the Barcelona football club, but also for mountain climbing and skiing in the Pyrenees, and as a training center for cycling teams.
Barcelona
Barcelona is a modern, vibrant seaside city with a big port that can accommodate the world’s largest cruise ships and container ships. Its residential districts are lush and comfortable, and it is arguably even more cosmopolitan than Madrid, with a variety of calm beaches to select from. Property investment in Barcelona has rewarded millions of people with sustained wealth and long-term gain for decades, despite being more expensive. It boasts a fantastic international airport that is only 15 minutes away by vehicle and offers many flights every day to most places, including the most popular, such as London. The city offers several chances for foreigners, primarily in the hospitality industry, but also in education, marketing, and import/export.
Costa Brava
The Costa Brava is a trendy, stylish, and culturally rich destination. It is the home of Dali and is a hardworking region with a strong sense of style. Summers are pleasant, while winters are cooler than on the coastlines to the south. “Euro commuting” is possible from both the Costa Brava and the Costa Dorada. Buying a second house in Costa Brava is always a good investment because of its tremendous tourist attractions and high quality of living. You can easily rent out your space between stays during the season. You’ll also have the peace of mind of knowing that you’ll have a nice location to call home when you retire.
Valencia
Valencian Community is an area on Spain’s south-eastern coast known for its 518 kilometers of Mediterranean coastline, sandy beaches, and an active nightlife. Mountains, grasslands, wetlands, and beaches abound in the region, providing a setting to fit practically every interest or activity.
City of Valencia
Valencia is the capital of the Valencian Community and Spain’s third-largest city. The City of Arts and Sciences is known for its architectural complex, the Fallas festival, and for being the birthplace of paella. Valencia, along with Madrid, has long been regarded as one of the most intriguing real estate markets to invest in. Property for sale in Valencia is a little easier to come by than property for sale in Barcelona, which is a little further up the coast. In addition, the city is more interesting than Alicante, which is a major tourist destination. Valencia real estate has seen a decrease in the price of its residences in recent years. As a result, this is an excellent time to buy a great property in Valencia’s capital.
Costa Blanca
With properties starting at just over €60,000 and reasonably priced golf courses and services compared to Spain’s more affluent Costas, the Costa Blanca is a budget-friendly alternative for property investors. Alicante airport receives flights from all around the world throughout the year. As you drive north from the airport, the terrain gets greener, with pine forests and palm trees, after circling the gleaming tower blocks of Benidorm in the heat haze. South of Alicante, the weather is milder and the countryside is flatter. The beaches are gorgeous, the housing developments are low-rise, and local entertainment for all ages is readily available, ranging from golf courses to water parks and Orihuela continues to attract a large number of British house buyers.
Andalusia
Andalusia covers the entire southern coast of Spain. The traditional Spanish experience includes flamenco, bullfighting, tapas, and long hot summer days. Andalusia is much more than a seaside province. Check out the Sierra Nevada mountains, ski resorts, and the magnificent foothills of the Alpujarras. There is also art and culture to consider. This covers both the historic and the present, such as the Alhambra Palace in Granada. During your home search, make sure to visit the Picasso and Pompidou Museums in Málaga, as well as the Jerez region and wineries. Both Seville and Málaga are expected to see an uptick in property sales. Although these cities have not experienced the same price hikes as Madrid and Barcelona, they are nevertheless recognized as having a lot of potential.
Costa Del Sol
Because of the influx of international investors to the Costa Del Sol, English is widely spoken. With an average of 320 sunny days per year, Málaga has more sunshine than anywhere else in Spain. The Costa del Sol runs for 160 kilometers and has some of the best beaches in the world. Every form of family-friendly activity imaginable, as well as fantastic shopping, 14 Michelin-starred restaurants, championship golf courses, marinas, and spas, are all available at the beach. The hillsides above the beaches are lined with multimillion-euro houses, but there are also less costly areas such as Torremolinos, Mijas, and Fuengirola, as well as upmarket attractions such as Marbella, Puerto Banus, and Estepona. All are within easy driving distance of Malaga’s international airport. Malaga, Granada, Seville, and Cordoba are just a few of the beautiful cities on the Costa del Sol. It is well-known for its culture, having produced Picasso and flamenco dancing, as well as the development of tapas.
Balearic Islands
People prefer to live in the Balearic Islands for a variety of reasons, including the ease with which they can travel, the pleasant climate, stunning beaches, and unique history. Despite the fact that it is one of the more costly areas of Spain to buy a home, few people ever regret their choice.
Mallorca
With its amazing beaches, calm coves, limestone mountains, Spanish architecture, vineyards, fresh produce farms, and stunning coastline, Mallorca is the most popular Mediterranean destination. Investors from the United Kingdom, Germany, and Scandinavian nations, in particular, are constantly interested in the Mallorcan property market.
Menorca
Menorca is renowned as the “Jewel of the Balearics” because of its calmer, more serene atmosphere. The island’s most appealing feature is its breathtaking coastline, which includes more beaches than both Mallorca and Ibiza combined. In the winter, Menorca is a little more difficult to reach, but it also has lower prices than Mallorca.
Ibiza
If you get away from the beach strip, Ibiza, popularly known as “The White Island,” is a wooded island with beautiful calm rural portions. There’s a spiritual undertone running parallel to hedonism. Property is pricey, as one might expect, but it has a big summer rental appeal.
Formentera
Formentera is the smallest of Spain’s Balearic Islands, located in the Mediterranean Sea and accessible by ferry from all of the other islands. The property market on Formentera is unique. Formentera is one of Europe’s most exclusive real estate markets today, thanks to its limited housing stock and strict restrictions on new development projects. Summer rental values in Formentera are far higher than in Ibiza, making purchasing a property here a substantially better investment. Villas on Formentera have the potential to be rented out and generate a larger annual income.
Safcom Investments provides a range of consultancy services related to investment property, buy-to-let property, and residency by investment property in Spain. We know that our clients confront a variety of issues, which is why we provide each client with custom-tailored solutions. We provide a comprehensive, end-to-end property consulting service that considers every aspect of a property search and acquisition from the buyer’s point of view. Every task at Safcom Investments is approached as if we were seeking a personal investment for ourselves.
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