Top 10 reasons to invest in real estate in Spain

Investing in real estate in Spain from year to year is one of the most attractive options when it comes to increasing capital. The fact is that real estate in the property is an investment in the future, as well as monthly cash receipts when renting out premises. In this article, we will look at the question of why to invest in real estate in Spain.

CONTENT:

• Spain and real estate: facts you need to know
• Nuances of investing in real estate in Spain
• Investment methods
• 10 reasons to invest in Spanish property
• Benefits of investing in real estate in Spain
• We will help you buy property in Spain

SPAIN AND REAL ESTATE: FACTS YOU NEED TO KNOW

In the first quarter of 2021, housing is moving towards a stabilization scenario. Spanish property market statistics are indicative:

• The average cost of finished property (new and secondary) in Spain was 1390 € / m² in the first quarter of 2021. This is 0.5% more than in the same period in 2020;
• In April, capitals and major cities of Spain increased the average monthly price for the second month in a row;
• The demand for rental apartments is growing by 25% per year;
• Rental prices have risen in recent years by 16% in Barcelona and 15% in Madrid;
• In recent years, the number of houses and apartments available for sale and rent has grown by 30%;
• The demand for apartments for rent is growing at a faster pace than the pace of the construction industry.
• Contracts are drawn up in less than 48 hours for 12% of apartments for rent in Spain.

All this testifies to the high demand for real estate in Spain, as well as a small shortage of this property, which creates an excellent opportunity to benefit from real estate in Spain.

NUANCES OF INVESTING IN REAL ESTATE IN SPAIN

Investing in real estate is a serious investment because the amount is usually high. Here are 3 main points to consider if you are looking for buying a house in Spain:

• Location is one of the most important points. Location must be chosen considering the settlement where construction is located, transport infrastructure, services, supermarkets, shopping centers that surround the property.
• Building. Buying an apartment, house or, for example, a residence are different types of investment. Here it is necessary to assess the physical characteristics of the property, its finishes, materials, area and construction scale, age of the property, maintenance, etc.
• It is important to choose a segment of the real estate market. For example, invest in apartments for students or workers. This will allow you to make your investments more accurate and your strategy – more efficient.

INVESTMENT METHODS

Let us consider what kind of real estate it is profitable to invest in in 2021.

There are various ways to invest, although they can be categorized into three types.

• Apartments. Buying an apartment in Spain is one of the most popular options. Soon, when space runs out, cities will grow upward. In addition, apartments usually offer the opportunity to live in a micro-community with a variety of services available.
• Houses in Spain are one of the most common investment methods and also one of the safest investments types. While the number of houses under construction is getting smaller, there are alternatives such as summer houses, country houses or beach houses.
• Commercial real estate. Finally, investing in real estate in Spain with a commercial turnover can be another great idea. More and more companies and businesses are settling in this country, and statistics on tourism and commercial sector are growing, so investing in a mall, premises or rental office can be a good and safe option.

10 REASONS TO INVEST IN SPANISH REAL ESTATE

1. First thing to know: Spain is considered one of the most attractive countries for real estate investments in the entire European continent. Its location, safety, rich history and culture, the large number of tourists it receives every year, and an expanding market create a positive investment environment. Unlike other countries, investments here are protected by one of the most important members of the European Union.
2. Privileged position. Some countries suffer, for example, from being landlocked or surrounded by rugged geographic areas such as a mountain range. Spain is in a privileged geographical position. The country with the easiest entry to Europe, has a large number of routes from other parts of the world such as South America at its airports. In addition, Spain has connections with countries such as France or Portugal, and is also a gateway to the Mediterranean and North Africa.
3. Infrastructure and development. There are many positive conditions that Spain offers for investment. One of the most important is the infrastructure that this country has. Real estate needs good infrastructure in order for its value to grow and capital gains to be better. An excellent example is the Spanish transport infrastructure with first-class airports, extensive high-speed train and metro networks, and thousands of kilometers of roads and highways. We can also see high quality in medical infrastructure, communications, etc.
4. Life quality. The quality of life will significantly affect real estate investment. Investing in a country with a good quality of life will allow you to get better returns and also give you more confidence.
5. Expanding real estate market. In Spain, the demand for rent has been recorded by more than 10% in recent years. Unfortunately, or fortunately for us, the number of properties available for rent is still not enough. Thus, 12% of apartments for rent can be booked in less than 48 hours. An expanding market offers many advantages, such as a large number of potential customers, as well as less intense competition.
6. Growth in immigration and tourism. More and more people decide to move to Spain to improve their quality of life, just as more and more tourists do not return to their homeland. This is of great benefit as the demand for apartments for rent tends to rise. The frequent flyer sector typically seeks accommodation in premium areas, close to tourist attractions and with luxury services. Instead, those people who come to Spain looking for jobs, for example, tend to prefer cheaper real estate.
7. Students and their implications for real estate. Without a doubt, the quality of education in Spain is one of the best in the world, justifying the fact that more and more students are moving to cities across the country to study. There are many reasons to invest in Spanish student housing, one of which is low requirements (small apartment or attic). In addition, the demand for premises is usually very high, the hiring is fast, and the contracts are for a fixed period.
8. Property value. Many might think that property value is the main obstacle to real estate investment in Spain although buying, renovating or building any real estate is more expensive than in other countries. The benefits of these costs are very favorable compared to other countries. Another plus is that after the crisis in the real estate market, in the period from 2006 to 2008, the cost of secondary housing decreased by 52%. In addition, the average annual increase in the value of Spanish real estate is the lowest in the European Union.
9. Higher availability of real estate transactions. The availability of real estate transactions is growing. There is a wide range of investment options, for example, greater availability of buildings and apartments for sale or more companies building different types of real estate (houses, offices, etc.).
10. Return on investment. The return on investment in real estate in Spain is in a very attractive position compared to other countries. There are options here with positive profit margins, thanks to high rental demand, the weight of tourism and the expansion of the property market.

According to various ratings, Catalonia (in particular Barcelona and Madrid) tops the list of cities with a high level of return on investment in Spanish property. The Balearic Islands and the Mediterranean coast (cities such as Alicante and Malaga) are ranked as follows. Annual growth and gross annual return are at 9.1%.

BENEFITS OF INVESTING IN REAL ESTATE IN SPAIN

Great potential for growth and, above all, good profitability, undoubtedly, distinguishes investing in real estate in Spain. Let us analyze whether it is profitable to invest in real estate in Spain. Here we list some of the benefits of this investment option.

• Variety of choices: Real estate market in Spain has many types of real estate (ordinary apartments or houses, residences or cottages, wineries, retail space, offices, etc.).
• Modern and cosmopolitan cities: Cities such as Barcelona or Madrid stand out for their modern infrastructure, cultural value and economic importance. Other coastal areas such as Alicante, Malaga, the Canary Islands and the Balearic Islands also offer great opportunities. Investing in real estate in cities of this level may be the right decision, because the demand for rental real estate is growing, in addition, the quality of life in these cities is high.
• High profitability. The quickest and simplest answer to the question “Is it in your interests to invest in real estate in Spain?" - should be a loud “Yes!”

In conclusion, we would like to leave you some advice on which property in Spain is best to invest in.

If you really want to successfully invest in real estate in Spain, your best bet is to focus on the niche market. That is, develop a global real estate investment strategy and look for real estate that fits into this strategy.

WE WILL HELP YOU BUY PROPERTY IN SPAIN

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