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The sector of property for sale in Spain has ridden out the economic crisis, demonstrating that it is an excellent medium to long-term investment. In fact, last year the property market showed a worldwide recovery of 6.6%, and the Iberian Peninsula managed to position itself among the most appealing countries for investors.
More Attractive Prices Open New Markets
The instability of the stock market has meant that more and more people are opting for a reliable income in order to keep their assets in a safe place. In other words, they prefer to invest in the property sector. Because of this, the price of luxury houses has remained rather stable, suffering only a slight decrease, fluctuating between 20 and 30% at its worst.
In 2006, for example, the price per square meter of a luxury house in Paseo de Gracia (Barcelona) reached €14,000, but it currently costs €10,000. The drop has not been as pronounced as in the mass market, but it has been enough to attract new investors, who are mostly French, Scandinavian, or Russian.
Renting Out a House: How to Make an Investment Profitable
Most of the housing demand is centred on the Costa del Sol, Madrid, and Barcelona, mostly because they are the most profitable locations for investing in property. In fact, while domestic rentals have an investment return of around 3.5%, the luxury sector boasts earnings between 7 and 10%. By way of example, a €1 million luxury apartment in Barcelona can be rented for €6,000–7,000 a month.
How Long Should You Wait to Sell?
In reality, buying property for sale in Spain will be very profitable long term investment. However, estate agents ensure that if a house is priced reasonably, it can be sold in a period from six months to a year. Furthermore, it is recognized that this type of client is not only looking for villas with sea-views, but also houses inland that offer tranquillity and privacy.
Bruce Giles writes for a digital marketing agency. This article has been commissioned by a client of said agency. This article is not designed to promote, but should be considered professional content.
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property for sale in Spain, Spanish property, buying property abroad, Spanish real estate,
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