Spain Property Investments: Benefits + GMG Mortgage Options  

Property Investment in Spain 

If you find yourself enjoying pristine beaches, sangria, and architectural masterpieces, Spain might just be the destination for you. The beautiful coastal region is surrounded by three sides of the Mediterranean Sea, offering stunning views of scenic coastlines. Such attractions have allured an intense interest in foreign buyers, driving up property values by 11.8% in cities like Barcelona, Madrid, and Valencia. As a result, this has made Spain a prime spot for both vacation homes and property investment. 

Here are some of the top reasons why you should invest in Spanish rental property and experience all this beautiful country has to offer. 

Rental Income Potential

According to data released by the Central Bank of Spain in March of 2022, the expected return on the property investment market in Spain is around 10%. Spain, and especially the Spanish Costas, are proving increasingly attractive to purchase a house for rent. The average return on investment in Spain is high at 6.7 percent and peaks at almost 8 percent along Spanish coastal areas– Costa del Sol, Costa Blanca, and Costa Brava.

Price Appreciation Outlook

The end of the Covid-19 pandemic has turbocharged price appreciation in Spain. High demand and low supply, together with a decrease in construction and an increase in the price of materials, are big contributors to Spanish rental appreciation following post-pandemic recovery. As of October 2022, prices of existing dwellings in Spain have reached record-high numbers for cross-border investment. The Spanish property market is trending upward, and experts estimate around 750,000 property transactions will occur this coming year, with an average price growth prediction of 10%. 

Low Cost of Living 

Due to low minimum wages and average salaries in Spain, the cost of living is relatively affordable compared to other European countries. A family of four should be able to live comfortably in Spain with average monthly expenses of €3,120, including rent, utilities, transportation, and basic needs. Housing in Spain varies depending on the city, but typically, if you are buying Spanish property, the average property price per square meter in Barcelona and Madrid hovers around €3000–€5,000 (€150,000–€250,000 for a 50 square meter apartment). Homes with greater square footage in more exclusive areas of both cities can cost up to €600,000–€700,000. Expats living in the coastal region of Spain can expect to pay slightly more than other cities, although there are some exceptions. More affordable areas in Spain include Extremadura, Aragon, Castile-La Mancha, and Navarre, and the more expensive places to live in are prime vacation destinations such as The Balearic Islands – Ibiza, Menorca, and Mallorca. 

As of now, buying rental property in Spain is one of the best assets to invest in due to its high rental yield, forecasted appreciation, and quality of life. If you are interested in investing in European real estate, Spain is a great location to consider.

Mortgage Options for International Investors

Foreign investors and non-Spanish residents can now get appealing terms to finance their property purchase in Spain, such as a minimum loan amount of €250,000, up to 25 years (or until the borrower turns 75), and interest rates starting at 3.5%! The best part? This is available for properties throughout Spain, The Balearic, and The Canary Islands! With up to 75% loan-to-value, this program was created by GMG, particularly for foreign nationals! You'll be amazed at how simple qualifying is and the speed of the entire loan process.

Get in touch with us to learn more about investing in Spain, properties available to purchase through our partners and about GMG's financing solutions for foreign national investors today. hello@gmg.asia.

Why Dubai is a Great City for Property Investment

Due to the sheer amount of investment opportunities, Dubai has become an attractive target for international investors. Expats looking to live and work in leading global business hubs that offer a luxurious quality of life and a good working environment have Dubai as a top option.

Here is what you need to know about investing in one of the fastest-developing countries in the world. 

Amount of International Investors

With desirable tax-free policies and little to no limitations on profit expenses, Dubai has one of the most notable track records for acquiring overseas investors. According to Invest Dubai, the emirate’s efforts to streamline regulation, support innovation, and develop human capital have paved the way for its premier presence today as the preferred global FDI destination for both Fortune 500 companies and new entrepreneurs alike. 

Consequently, Dubai has generated its highest amount of rental activity in decades, outpacing many western cities as the biggest investment destination with an average annual rental yield going upwards of five percent. Real estate blog Kaizen reports Dubai’s real estate sector to have attracted 19,757 foreign investors, of which concluded 24,666 investments worth over Dh35.6 billion.

Cost of Living

Due to its portrayal in the media, many assume you have to make a six-figure salary to even consider living in Dubai. However, the cost of living is not as high as one might think. In fact, one of the reasons Dubai is such a popular destination for foreign investors due to its lack of income tax and minimal sales taxes. Rental costs and living expenses are also quite low compared to other urban cities like London or New York. According to DMCC, the average rent for a studio apartment in the centre of Dubai is AED 5,141.89 (USD 1399,92), with monthly expenses of AED 3,477.89 (USD 946,88). Similarly, the average home price in the centre of Dubai is AED 2,791,502 (USD 760,000). 

Visa Opportunities (Portugal, Spain, Dubai)

Recently, the UAE has relaxed restrictions on their coveted Golden Visa to attract more expatriates. Along with slimming down their minimum investment requirements from AED 5 million to AED 2 million, the UAE also doubled its validity from 5 years to 10 years. Under the new amendments, investors are now entitled to obtain long-term residence when purchasing property loans from local banks.

Top Areas in Dubai

According to 99acres, the most sought-after real estate properties in Dubai are within Dubai Hills Estate and Dubai Silicon Oasis, both of which are luxurious residential areas. Palm Jumeirah, Dubai Marina, and Dubai Downtown are also popular locations because of their exclusivity and glamor.

The listings in these areas suggest that residential apartments dominate almost 75% of the housing demand in Dubai. Among them, one-bedroom and two-bedroom units have the highest demand, with prices starting from around Rs 1.5 crore.

Another popular configuration in Dubai is independent houses that generally comprise two bedrooms and above. The prices of these standalone units begin at Rs 2.5 crore.

GMG Dubai Mortgage 

With up to 25 years, maximum 75% loan-to-value, and interest rates starting from 5%, foreign investors and non-Dubai residents can now obtain attractive terms to finance their Dubai property purchase.

GMG designed this program specifically for foreign nationals with particular focus on the ease of qualifying. The speed of the entire loan process will surprise you.

Get in touch with us today to find out more at hello@gmg.asia.