Why Invest in Spanish Property?
Smart real estate investors often look to the Costa Blanca. The idea of a beautiful coastal property with sea views in a sun-drenched climate is indeed very appealing to many. But what exactly do the numbers say? We went in search of the underlying data that go together with this idyllic image and explain to you why investing in Spanish real estate is an interesting idea.
You can earn something from your savings.
It has been known for a long time: money in the savings account no longer yields anything. In various countries, the interest on your savings account is a lot less than 1%. It is therefore of little use nowadays to leave your money in a savings account. Especially when you keep inflation in mind.
“But what am I supposed to do with my money?” you ask. An interesting way to take advantage of the money in your savings account is to invest it in Spanish real estate.
The Rising Energy Prices
With an average of 6 hours of sunshine per day from November to February, the temperatures are very pleasant. In the new-build homes with floor-to-ceiling double glazing, you don’t have to use the heating very often in winter.
Energy prices have remained the same here in recent years, because many owners have a fixed energy contract, and in Spain you pay up to four times less for electricity.
In addition, consumer prices in shops, restaurants and bars are also much lower than in the North of Europe.
Spain’s rising real estate market
At the end of 2008, the Spanish real estate market suffered enormously from the banking crisis. This ensured that there were serious ‘bargains’ in the field of Spanish real estate.
We are now more than ten years later and most of the bargains have already been taken off the market for next to nothing. However, this does not mean that you can no longer do interesting things.
Property prices in Spain have been rising continuously since 2014, but this should not be seen as a discouragement. Data published by the Spanish National Bank shows that the profit from the sale of real estate in Spain is around 11.2%. Before the banking crisis, the profit from the sale of Spanish real estate was around 20%!
New construction projects as a new trend
Of course, investing in real estate in Spain does not mean that you should only look at existing real estate. Figures from the Colegio de Registradores de la Propriedad (the association for the registration of real estate) show that one in five Dutch people buy a new-build home or have it built. Belgians, on the other hand, are even more inclined to invest in new-build homes, at one in four.
It is extremely important to know what trends are happening in your region. What is the current asking price for real estate in the area? What is the purpose of your purchase? How stable are the prices? Be sure to check out our region pages if you want to learn more about living in the different regions.
Choose a reliable partner
All that new information can be quite overwhelming. Especially when you are going to invest in Spanish real estate for the first time. So let yourself be assisted by a reliable partner who can inform you about the entire process. Our experts have years of experience in supporting individuals and investors, so you can start your adventure without any worries.
Get legal advice!!
As in other southern European countries, the role of the notary in Spain is performed differently than in the Netherlands or Belgium. Therefore, be sure to contact a Dutch-speaking lawyer in Spain who will check your property for construction violations, debts, etc… Of course we can recommend a few lawyers where employees speak your own language, even easier.
