In this article, White & Company explores why market conditions have made it a great time to buy property in Spain.
If you’ve been holidaying in Spain this summer and contemplated the idea of sipping sangrias in the sun all-year long, rest assured you are not alone.
The trend of Brits looking to buy property in Spain is as strong as ever and shows no signs of slowing down.
According to Jay Lindop, deputy director at the Office for National Statistics, ‘Spain continues to be the most desirable location for the three-quarters of a million Brits living in the EU’.
White & Company has continued to see yearly growth in the level of inquiries for removals to Spain. It observed a trend of UK buyers retiring to the Spanish coast or purchasing holiday homes to beat the winter blues.
Moving to the capital, Madrid or other vibrant cosmopolitan cities, such as Barcelona and Valencia has also proven popular.
Why now is a great time buy property in Spain
Despite the continued uncertainty of Brexit and the decline in the price of the pound a large number of Brits are looking to take the plunge and buy property in Spain.
In fact, Channel 4 programme, A Place in the Sun reports that Spain remains the favourite holiday home destination for Brits.
Spanish property prices rise but remain competitive
Housing prices fell during the recession years by an average of 15.4% (20% in real terms) and remain sluggish.
In the last year or so, the Spanish economy has recovered well. It has forecasted growth in GDP and recorded consecutive quarters of growth.
Renewed confidence is now feeding into the property market and housing prices are once again on the rise.
Despite this steady increase, prices remain at competitive levels and offer excellent value for money, compared to the UK.
The Telegraph reported the sale of 465,000 properties in 2017 – a 15% increase on the previous year.
Affordability is the key driver behind UK buyer interest in Spain.
Low cost coastal destinations, including Costa Blanca and Lanzarote continue to prove popular.
Greater return on investment
Spanish property is also seen as an ideal return on investment.
Low-interest rates mean new developments could yield large returns for buy-to-let opportunities.
Of course, most people are not cash buyers. Rest assured that Spain has some excellent financing options.
Non-EU investors have already been tapping into lucrative markets across the country. Spanish lenders are keen on attracting non-residents and overseas buyers.
Financial experts have forecast a rise in Spanish property prices should the London property bubble burst.
Now appears an ideal time therefore to invest and the ideal market conditions in which to do it.
Brexit fails to deter buyers
Ex-Spanish Foreign Minister, Alfonso Dastis has said Brits living in Spain will have the right to remain should there be no Brexit deal.
At the time of writing, it remains unclear whether any such deal will get approved.
This does not appear to have discouraged Brits from moving to Spain.
In fact, more Brits have attempted to speed up the process of moving to Spain. Many are seekign to take advantage of EU free movement, in case, post March 2019, these rules change.
The process of moving to Spain remains straightforward with no restrictions on UK residents buying property in Spain.
It makes sense for Brits to capitalise on this before things change. In a few months time the process may becomes more complicated, or worse still, expensive.
Property in Spain is great for first time buyers
It was once thought that buying property in Spain is only for retireees.
This idea is being challenged by young people moving to Spain, who see it as a better alternative to live and work.
According to recent research, Spain ranks second, behind only the UAE, as the desintation of choice for first-time buyers.
This is due to a combination of affordable property prices, favourable lending conditions and the cheaper cost of living.
As a result, more young people are looking to base themselves in Spain.
Higher quality of Spanish property
Developers must provide all the necessary paperwork for building consent under new laws.
This has meant developers have had to show they are offering houses of a higher quality.
As such, with new developments you can expect homes to be of a very high standard. This includes large living spaces and the installation of the latest home technologies.
The fallout from the economic crisis has also resulted in greater oversight of the financial security of such projects.
How to buy property in Spain
Home ownership in Spain is well above the average across the EU at around 80%.
Foreign investors account for a large proportion of this, including British expats, drawn to the coastal regions.
The Spanish property market is set up to encourage foreign investment. As such, the process of purchasing a property in Spain is straightforward.
It’s advisable to instruct an estate agent to guide you through the process.
Estate agents provide detailed information about the region or city you’re moving to. Many are bilingual and well versed on explaining the process to overseas buyers.
As the Brexit deadline approaches, the process of buying property in Spain could change.
With no existing barriers to foreign buyers and favourable market conditions, now is the perfect time to buy property in Spain.
*Please note all information in this article was accurate at the time of writing in October 2018.