It can be said that the Spanish real estate market now allows foreign buyers more than in the last couple of decades. Now an investor, even with a very modest budget, who previously could not even think about Spain, comes and buys a magnificent house with a large plot here.
The relevance of the obvious
There are infinitely many real estate offers in sunny Spain right now. This is a buyer's market, the trust of foreign investors is gradually returning to it, and it is unknown for whom it is more interesting – for fans of discounts or for connoisseurs of good rest and the sun.
It is easy to find offers worth no more than 150,000-160,000 euros, and these will be objects that are far from the last in quality and area. But, as always, the location affects the price, and counting on investment-friendly deals when you can buy cheap today and sell expensive tomorrow, you need to keep in mind the formula "next to the sea, next to the beach, next to the infrastructure."
Mark Stacklin, head of the real estate information website Spanish Property Insight, says: "In this market, the strategy is clear: you should choose well-equipped, in-demand areas, and then look for profitable offers in them. Everyone knows about the importance of a good location – and in practice, most people forget about it."
The best chances for a successful purchase are in the Balearic Islands, Marbella and Valencia. The best object for long–term investments, according to Mark Stacklin, is a well-built residence with attractive views from the windows in an area with developed infrastructure. Barcelona and Madrid will always be popular, but real estate on the coast is getting more expensive faster than in cities.
A lot of new things
New buildings are what today's buyers in Spain can focus on. There are many offers, and there is plenty to choose from. In addition, the abundance of new turnkey villas and apartments reduces their price. Paul McMullen, commercial director of the British company Escape to Spain, explains: "At the moment there are really attractive offers in the segment of new buildings. And the best of them are turnkey houses. In most cases, developers have to sell them to pay off debt to banks, so they are willing to accept a price 40% less than the original one."
Victor Sagul, Commercial Director of Taylor Woodrow de Espana, the Spanish office of the international company, confirms: "We have significantly reduced property prices, and some houses are now worth just over 110,000 euros. This has opened up the Spanish real estate market to those who previously could not afford to buy a home in this country."
For example, in the Balearic Islands, the company sells two-bedroom apartments in the El Puerto II complex, which is located in Mallorca, in the Cala d'Or area. The obvious advantage is the location close to the beach and the city of Palma. The houses are located around the marina and are priced from 153,500 euros.
The further away from the coast, the lower the prices. Key Ready Investments has offers of two-bedroom apartments in Andalusia, near one of the most beautiful cities in Spain, Granada. The Balconies de Iznalloz complex is located an hour and a half drive from Malaga Airport, as well as near the Sierra Nevada ski resort, has a spacious swimming pool, restaurant, gym and spa, each apartment has its own garage and storage room. The cost of the objects is 90,000 euros.
Be ready!
The boom times, when foreign investors swept away all the facilities at the initial stage of construction, are long gone. For those who do not like to take risks, it is better now to make a choice in favor of ready–made objects - fortunately there are plenty of them on the market. Paul McMullen explains: "I would not advise anyone to buy anything at the construction stage now, it makes no sense. Real estate prices are not rising, so investors will not receive a quick income. In addition, there is always the possibility that the developer will go bankrupt and leave customers with unfinished housing and a headache about how to return the money. Today it is necessary to buy real estate either completed and with communications carried out, or turnkey."
The Spanish company Casas de Lorca offers accommodation in one of its complexes – The Lorca Apartments, the work in which has already been completed. It is located near the University of Lorca in Murcia. Apartments with one, two or three bedrooms are suitable for renting to students, so the seller can afford to guarantee rental income for three years. House prices start at 69,500 euros for one-bedroom apartments, while three-bedroom apartments will cost 131,000 euros.
From hand to hand
As a rule, objects on the secondary market are slightly cheaper than similar objects in new homes. There are a lot of profitable deals being made in the Spanish segment of secondary housing. However, the buyer should be prepared for additional expenses for minor repairs.
Paul McMullen comments: "Choosing a second home can be more difficult than buying a new property. The huge price difference is confusing: some owners are desperately trying to sell their house and reduce prices, others are running out of time and they do not want to miss out on the benefits. Therefore, similar properties in the same area can vary significantly in price. In this situation, when making a purchase through an agency, it is better to ask specialists how much one or another option cost two years ago: if the agent is reliable, he must have such information."
The British company DLR Properties is selling a two-bedroom villa on the Costa Blanca, in the southern part of the province of Alicante. The villa costs 120,500 euros, has a veranda and an outbuilding for household needs. Golf lovers will appreciate this house, as it is located between three golf courses - Villamartin, Campoamor and Las Ramblas, and restaurants, bars and shops can be reached on foot.
For those who prefer the silence and landscapes of the interior of Spain, the local company Andalucia Exclusive has a romantic offer – a renovated three-bedroom rural house for 152,000 euros. The house is located in the province of Malaga, in the village of Arriate, near the 35 thousandth city of Ronda. The house has a wood–burning stove, next to the house there is a well and a garden with mature olive trees, the windows overlook the mountains.
Taking this opportunity...
Today, the offers for investors are so diverse that the real estate market, which was once considered an almost impregnable fortress, can be entered with a very modest budget.
Among the offers from the English company Titan Properties is a two–bedroom villa on the Costa Calida (coast of Murcia) for only 58,500 euros. The house is located in the Camposol Mazarron Golf resort, within walking distance of an 18-hole golf course, a clubhouse and a four-star Spa Hotel. No one lived in the house before, it is fully furnished, there is a terrace on the roof.
In Almeria, through the Casas de Lorca agency, you can purchase a house requiring restoration on a plot of 30,000 sq. m. Water and electricity are connected to the house, it is possible to make four bedrooms. The neighbors will be residents of a quiet village near the city of Lorca. The price of the offer is 88,000 euros. The estate can be a great place to relax, and if desired, an object for long–term investment.
