2018 looks set to be a flourishing year for the Spanish real estate market. There should be more properties available to buy or rent than in recent years. Is now the right time to buy an apartment or house in Spain? Here are some answers.
Spanish real estate market consolidates
After several years of crisis, the Spanish real estate market has stabilized in recent months, and should continue to consolidate during 2018. It has benefited from the significant growth experienced by Spain in 2017 (+ 3.1%).
Even so, lending rates in Spain remain exceptionally low, although a slight increase is expected this year. Purchase prices, although they have risen in recent months, also remain very low. Along with Portugal, Spain is the country with the lowest property prices.
More tourists, more investors
Tourist numbers have also risen sharply (+10%), making Spain the second most popular tourist destination in the world, just behind France. Demand for vacation rentals, particularly on the Costa Brava, has also naturally risen. Real estate experts therefore agree that investors, especially foreign ones, will be more numerous this year. At the same time, more properties are expected to come onto the market.
In 2016, 10% of property purchases in Spain were made by foreign nationals, 25% of whom were French-speaking (French, Belgian, Swiss). There are also a growing number of Moroccan and Algerian investors.
In addition, banks are expected to facilitate access to mortgages and the construction of new housing, particularly for tourists.
Spanish nationality can be obtained simply by investing in property on the other side of the Pyrenees. However, the investment must be worth at least 500,000 euros to qualify for the Golden Visa. This residence permit is valid for two years, and can be renewed if the investment is still in progress at the end of the two-year period. It is, of course, possible to buy for less without this special permit. We have agencies in Roses, Empuriabrava and Santa Margarida.
With more properties on the market, credit rates and purchase prices still very low, 2018 is therefore a most opportune time to buy in Spain.
Do you have a real estate project in Spain? Discover the apartments and houses for sale on the Costa Brava or contact the N1 France Espagne Immobilier team directly to discuss your project.