Spain attracts tourists, and the figures clearly show this: in the first 10 months of 2022, 63,000,000 people visited the country. Studios are a popular accommodation option for tourists. The opportunity to receive legal recurring income through rental housing is one of the main arguments in favour of buying a studio in Spain.
Content:
- Advantages of buying a studio apartment in Spain
- Disadvantages of buying a studio apartment in Spain
- We’ll assist in purchasing a studio in Spain
Advantages of buying a studio apartment in Spain
If you are thinking about how best to invest in real estate in Spain, then the studios on the Mediterranean coast are one of the best options. Such investments are profitable, which is easily seen in the statistics. Let’s go through the main advantages of such a purchase.
Low start-up costs
Studios are the most inexpensive housing option in the world due to their small area. Therefore, real estate in Spain for low-budget investments option is normally studios.
Apartments in new buildings in Spain are represented by standard apartments and also by open-plan layout options. The studios show a higher annual return on investment. The difference compared to one-bedroom apartments can be as high as 1%.
High liquidity
In Spain, they are in high demand as there are twice as few studios as 1-bedroom apartments.
The cost of such apartments starts from € 44,260 while the cheapest apartments with 1 bedroom will cost a minimum of € 49,900.
Wide price range
Even though these apartments are inexpensive housing options, studios in Spain can often differ quite a lot in price depending on the location and the interiors. E.g., an inexpensive waterfront option or a residence in Torrevieja will cost about €44,260 for a 30-square-, metre studio apartment. On the islands and in the centre of large cities, apartments of the same size in Spain can be found for €100,000 to €200,000. An average studio with a total area of 38 square metres in Barcelona will cost €58,000.
Increase in the value of the purchased property
As the statistics reveal, real estate prices in Spain have been growing steadily throughout 2022, although the growth rate slowed down in the second half of the year. E.g., in July 2022, the price increase in the country was 3%, but by September it had slowed down to 0.5%. In the country's two largest cities, Barcelona and Madrid, property prices’ growth was 5% and 7.6%, respectively from September 2021 to September 2022.
ROI up to 11,5%
Studio apartments in Spanish resort areas have one of the best returns on investment rates worldwide. Let’s consider the stats on the most profitable cities in the country in terms of profitability of investments in real estate as of the second half of 2022.
- Gandia, Valencia - 11,5%;
- Aguilas, Murcia - 10,9%;
- La Manga del Mar Menor, Murcia - 10,8%;
- Santa Pola, Alikante – 10,2%;
- Vera, Almeria - 9,4%.
High demand for studio renting
According to most Europeans, the Spanish city of Marbella ranks second in the list of the best tourist destinations in Europe. The resort has numerous amenities to offer tourists on any budget. Young tourists are often looking for an opportunity to rent a small apartment to enjoy the sun at the beach or walk around the clubs and shop 24/7. The high demand from tenants in the resort areas of the country is another advantage of buying a studio in the coastal regions of Spain.
Spain features a wonderful climate, delicious food, and numerous beaches. The country is water-washed by the Mediterranean Sea on the one side and the Atlantic Ocean on the other.
The infrastructure is well developed here, and hospitals traditionally are at the top of the world rankings, so many Europeans come here for long-term healthcare treatment or during the resort season. Studios for rent in Spain are highly in demand for both short and long periods.
Disadvantages of buying a studio apartment in Spain
Before deciding to purchase a studio or other real estate in Spain, it’s worth considering the possible disadvantages of this.
Social issues
The modest area and the fact that the property is relatively cheap can be the reason there’ll be poor and socially disadvantaged families amongst the neighbours on the floor. However, in resort towns, such risks are quite low. Other possible cons apply to any property purchase in Spain.
High taxes
In Spain property owners, including foreigners, must pay taxes. The fees include, but are not limited to, VAT for new developments and stamp duty upon transaction registration, annual council tax, tax on property ownership, and other fees.
By law, the government has the right to charge additional tax if the property was sold at a price below the market price.
In order not to get into a difficult situation, it’s better to not take any risks and to rather hire a lawyer to help you sort out the bureaucratic intricacies.
Unfavourable locations
Even in the coastal areas, some cities are not that popular with tourists. Study the statistics of a particular municipality in order not to be disappointed by your investment property purchase.
Communication difficulties
Unfortunately, Spaniards don’t like learning other languages so knowledge of English, German, or any other language will not help the homeowner much in everyday life. When registering real estate ownership, be prepared for the fact that you’ll have to hire an interpreter.
Political risks
Currently, buying property in Spain can be difficult for foreigners, although there’s no official ban on it. E.g., one must be prepared for difficulties when transferring money from a domestic bank to a Spanish one. There may be difficulties with opening a bank account. All these issues can be solved with the help of a local real estate agency or a lawyer.
We’ll assist in purchasing a studio in Spain
Buying a studio in Spain is a good option for investing in a resort region of Europe as, despite the bureaucratic difficulties, interest in Spanish real estate has not reduced. As of the end of 2022, Spain is still in the top 10 popular real estate investment destinations for foreigners. Please feel free to contact our English-speaking experts via online chat or leave a request on the website, and you’ll receive detailed advice on the current situation with purchasing property in Spain.