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Spanish Housing Market Guide for Property Investors 2019

Spanish Housing Market Guide for Property Investors 2019

Spain has been a hub for British tourism for decades; it slowly turned into a second home destination for many and for a multitude of Brits a permanent home of residence. Spain attracts so many Brits for a number of reasons: weather, accessibility, the culture, shopping, skiing, beaches, football for some and for others they are attracted purely for the fact that there’s so many British cultured spaces and bars being opened in the country. Nevertheless, Spain has been plagued with financial and political crisis in recent years which has had an inevitable negative effect on their housing market. These issues have raised red flags for anyone with an interest in property investing and real estate and with good reason. However, one look at the current state of affairs in the Spanish property market and could make a strong argument for why property investors should be looking to Spain in 2019.

We’ll start off with talking about the sharp decline from 2010 to 2014. Lucas Fox, a website known for its extensive knowledge in international property, shows us that the average prices per square meter dropped from €2,270 to €1,594. A sharp decrease and clear red flag for investors in a country with so many attractive features. Though it’s not all doom and gloom for Spain. The housing market in 2018 saw very promising rises of 8%, this may be 24% lower than 2010 but it is a step in the right direction, with many believing it to be the start of what’s to come.

Let’s take a deeper look into this by discussing three of Spain’s popular destinations for property investors and a detailed look into the current state of affairs for 2019. Madrid, the capital, is known for its shopping facilities, food, and beautiful architecture and of course their football team. Madrid’s property market saw many reasons for optimism as prices rose rapidly in 2019 with a 17% increase. Interestingly, there was a stark increase in luxury properties or properties priced at €900,000 plus, with an increased purchase rate of 47%. So as you can see, the increased demand and price increase of property in Madrid show signs of prosperity for the Spanish property market. Madrid is an emerging market for property investors and it’s predicted over the coming years to see gradual sustainable growth for any property investor.

The next market we will delve into is Barcelona. Barcelona like Madrid is known for its jaw dropping architecture and luxurious attractions, a favourite for Brits also because of the glorious weather. In 2018 Barcelona saw a slightly less increase in prices (1.4% according to Idealista) however it is 40% higher than in 2014. With an increase in property prices and an increased demand for investing in Spain as a whole it’s clear to see this will only benefit Barcelona moving forward.

The next and last location is Marbella. Marbella has tons of attractions for travellers and individuals looking to purchase a vacation home, with its stunning beaches, amazing eateries and high quality shopping facilities it’s no wonder it attracts so many year on year from visitors across the globe. Interesting, there’s now another reason; Marbella’s housing market is seeing continued steady growth with experts predicting it to last. 2018 was a great year for Marbella with property prices increasing at an average rate of 11%, additionally transactions to also went by 5% showing not only a healthy increase of the market but also a increased demand – vital for any property investor. 

So as you can see amid recent troubles the Spanish housing market has faced, the data suggests that now may be the best time to get a foot in the door. We at London Fractions are certainly interested to see how things progress and we have a few Spanish properties in prime locations available to buy fractionally now. Fractional ownership is a fantastic opportunity for those looking for a second home especially in markets seeing gradual increases and your fraction value will only appreciate as the market improves. 

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Liam Halse

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