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. email@example.com.