A guide to invest in Spanish real estate.

After years of hardship, the Spanish real estate market is finally normalizing. Housing has come back as being an attractive opportunity for even smaller and medium sized investors, who have regained a great deal of their former purchasing power thanks to banks providing easier access to credit again. Prices are no longer dropping and are now stabilized. Stabilization is occurring because the number of real estate sales is rising. Moreover, prices will continue the upward trend, going up accordingly as inventory becomes tighter. This being the situation now is the opportune moment to consider investing in Spain. Waiting will likely mean paying more.

In this context, you might want to start looking for opportunities now. But before picking a location and making an offer, you should consider several factors.

When investing in Spanish real estate it is important to choose locations in recognized market areas that are well communicated by transport links and with high demand characteristics. For instance, if you are buying in an area popular with the Spanish buyer, it is often better to buy smaller apartments as opposed to large ones.  According to Fotocasa, 71% of Spaniards live in apartments between 60 and 100 square meters.

What are the best locations to invest in Spanish real estate?

Above all, the location of the real estate is the most important factor. Tinsa, the biggest real estate appraiser in Europe and Latin America, says that while in February the increase in sales for the whole Spain was 2,7% (year over year), it was much higher in large cities with increases of 4,6% and above, and on the Mediterranean coast with a 6,1% increase. In contrast, the increase in the Canary Islands was just 2,5%, and only 0,7% in medium and smaller cities and towns.

With Barcelona and Madrid leading in number of real estate sales, investing in assets in prime locations of these two cities would seem to be a good choice. By prime locations, we are referring to apartments or stand-alone homes in medium and high income neighbourhoods with a shortage of previously occupied homes and little land left for new construction. Other good options include places located on the Mediterranean coast such as Sotogrande or Sitges. Both of these locations are wealthy and have a lack of second hand offer and available for construction. Costa Blanca and some spots in the Balearic Islands are other good areas to look into.

With the evolving real estate situation in Spain, good investments abound. For the conscientious investor who knows where to look and how to spot a deal, there are, indeed, many opportunities to be had. 

If you are interested in real estate in Spain, you may be interested in our services regarding property investment