Sunday, April 21, 2024

Why 2020 is the perfect time to buy property in Spain

The Spanish property market certainly suffered in the 2008 financial crisis – but that is now a thing of the past. Things are looking up for investing in property here for a number of reasons, and despite issues such as Brexit, UK investors can still benefit enormously from buying property here. In this article we take a look at why 2020 could be the perfect year for you to invest in property in Spain.

Rising property prices

It’s official – Spain’s property market is on the increase. According to a recent property market report, residential property prices rose an average of 6.7 per cent across Spain. And of course, it’s good news for investors that prices are rising but these numbers actually show something a little more impressive.

Firstly, that this is not just a blip: 2018 was the fifth consecutive year of increases in property values. But secondly, and crucially, the rise was the largest increase in a year since 2007. With prices returning to the kind of highs seen before the financial crisis, value looks set to grow further. Investing in 2020 should see you with a property that will continue to grow.

The growing holiday market

Of course, there are many reasons that you might want to invest in property, whether you are considering retiring to Spain in a few years, or you want a holiday home in the sun. But one scenario that is becoming increasingly popular (especially with foreign investors) is buying for the holiday market. Properties can now be listed on sites such as Airbnb and achieve a substantial return on investment.

The reason that this might be appealing in 2020 is that fact that Spain’s holiday market is still continuing to grow. Spanish tourism grew to record numbers in 2018 – with 82.6 million visitors coming to the country. The holiday retail market is very much in demand.

A great time to invest in property

If you have the capital to invest in a deposit for a property, there may be no better way to use your money effectively than to buy in Spain – there are many reasons for this. One of the most important is the fact that interest rates are currently running at historically low levels. This means it has never been cheaper to borrow money. Your mortgage is effective cheaper than ever before.

This is compounded by the fact that there are limited investment opportunities elsewhere; savings are weak due to the aforementioned low interest rates. Investing in property has historically been one of the safest and soundest strategies for return on investment. With the Central Bank of Spain forecasting a 10.5 per cent return on residential properties now is the perfect time.

An end to Brexit uncertainty?

One of the issues that is certainly hanging over British investors buying property in Spain is the issue of Brexit. As this fraught political issue continues to remain unresolved, a great deal of uncertainty has been created – and of course, uncertainty is never a good thing for those interested in investing their money.

It may be the case that by 2020, Brexit will have been resolved. If this does happen markets may begin to stabilise, and there will be far less volatility, for example in currencies. Understanding the costs can make it easier for investors to feel confident.

Ideal for first-time buyers abroad

If you are considering investing in property abroad for the first time, Spain is a great choice. There is a large ex-pat community of Brits living in Spain along with a range of great websites dedicated to providing information for those looking to buy, whether that’s for a holiday home or relocating their family.

If you are moving your life to Spain you will find it very easy to get settled in. The cost of living is low, the weather is excellent, and as we have established, property values are rising.

A huge variety of options

Another great reason to choose Spain is that there are simply so many fantastic options for places to live here. Many expats choose the Costa del Sol for its beaches and sunshine – and who wouldn’t be tempted by Marbella? But there are also fantastic cities such as Barcelona and the capital Madrid, along with less well-known options such as Zaragoza and Seville.

Claire James
Claire James
Claire is an accounts manager at Fire Digital UK, an online publishing and content marketing company based in the North West.

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