Spain has been doing everything right lately and has once again regained its position as the top overseas property destination in the world.
This is a decision only you can take, based on your situation, but it would help to know about the latest news and trends from the Spanish property market.
First of all, Spain has a stable government in place at the centre, under Prime Minister Mariano Rajoy. This is good news as there is no political uncertainty in Spain any longer. Overseas investors in real estate hate nothing more than uncertainty.
The economy is on solid footing, with the GDP growing at over 3.2% in 2017. Unemployment is no longer as high as it was a few years back. That’s great news.
Incomes have risen steadily, growing by 2.2% in 2016. Keeping in mind that incomes had declined across Europe in 2016, this is a very positive development indeed.
The real estate market in Spain is picking up pretty fast as well. There has been a construction boom in the country over the last 18 months – not as much as what was witnessed during the pre-recession period of 2006-07, but strong enough to make a difference.
More importantly, banks have relaxed lending rates and have no qualms about offering home loans to prospective homebuyers. Those of you familiar with the environment in Spain in the aftermath of the 2008 recession would recall how banks had completely stopped any lending activity as a response to the crisis. That is no longer the case, much to everyone’s relief.
Barcelona and Ibiza are among the places in Spain where property prices have shot up in recent years. The property market has done so well here that it has become impossible to find cheap properties for sale in these parts.
The recovery in Spain has been strong through 2016, and with a fast growing economy, high rental return and low financing costs, sales are expected to be high in the property market in Spain in 2017 as well. It has once again become fashionable to own a second home in Spain.
So who is buying in Spain? Britons, who are the biggest buyers of properties here, are no longer as active as they were in 2015 – when the British interest was at a high. One can safely blame Brexit for that, and the subsequent fall of the pound, which has greatly reduced the buying power of most British expats living here.
Germans, Swedish and Norwegian buyers have emerged as major investors in Spanish property. The Russian involvement has remained high and Spain is high on the priority list of wealthy Chinese looking to buy prime overseas property assets. Cash rich Arabs are the other big buyers of Spanish property.