The housing segment in Spain is experiencing an all-time high following the burst of the real estate bubble.
The growth of the economy, the decreases in the unemployment rate, and the rectification of the banking system have all boosted the sector.
Here are ten reasons to invest in the Spanish real estate market:
1- Spain is an attractive country
Worldwide, Spain’s economy occupies a prominent position that ranks as the 13th in the world, 11th in terms of GDP size and FDI issuance, and 9th in terms of exports of commercial services.
It also stands out for having a young and qualified population as well as competitive costs within the context of Western Europe.
2- Climate and quality of life
Spain is a country that offers a high quality of living with its superior healthcare system, a stable business environment, a rich cultural heritage and an enviable gastronomy.
To top it off, one can enjoy a good climate all year round along with the best beaches and coastlines.
3 – Privileged location
In an age of global economies, location plays an important role in deciding where to invest.
Spain is one of the best destinations for international business due to its privileged geographical location. It is an important point of connection with South America and a gateway to the African continent.
The ports of Algeciras, Valencia and Barcelona are among the main ports in Europe.
4 – Security
Spain, unlike other American, African or Asian tourist destinations, is a safe and peaceful country.
The most important urban and tourist hotspots of the Iberian Peninsula are ideal for living and enjoying a good holiday. The climate is free of major disruptions and the infrastructure offers guarantees to investors and tourists in terms of healthcare and various services.
5- Excellent infrastructure and communications network
Spain has an extensive road and rail network, as well as large ports and airports, favouring trade and tourism.
6- Spain is one of the top tourist destinations in the world
The climate, beaches, gastronomy, culture, architecture and history of the country have made Spain one of the main tourist destinations both in terms of resulting revenue and number of tourist arrivals. Therefore, its tourism real estate has a favourable global demand, which means that investing in this niche of the real estate sector is a safe bet for investors.
7- Investing in real estate is more convenient than saving
One of the best ways to make your savings yield is to purchase an investment property.
With a good purchase you will see capital increases in value and rental income will swell your bank account. Your retirement would not be a concern.
8- Increase in the demand for rentals
The situation of the labour market in Spain has led many people to end up renting instead of buying. This has encouraged higher rental prices and an increased demand for rental housing.
9- Buyer’s market / Market of opportunities
While property investments in other countries are suffering from high prices that limit the ability to enter these markets, Spain offers low-entry barriers for investors seeking advantageous/profitable investments.
10- Tax-free cash flow
One of the main benefits of real estate derived income is that due to depreciation and exemptions of mortgage interest, there will be tax-free cash flow. The investor can expect capital gains from the sale of the property in the future, without having to pay taxes on all of the cash flow.
Valencia delivers the best ROI in Spain
Valencia city is delivering the best Return On Investment in Spain. Prices keep rising steadily but slowly in order to allow a good rental yield for buy-to-let investors, and also a good potential equity in the long term. The Valencia property market is much more affordable than those of Madrid and Barcelona. Nevertheless, five figure property prices will disappear from the market very soon and low to mid-budget investors will struggle to find bargains on flats.