Despite being hit especially hard in the financial crisis ten years ago, Spain has shown a comparatively strong and consistent economic recovery. Real estate was one of the most impacted sectors in the crisis, and Spain real estate prices plummeted after reaching their peak in 2007. However, property values have recovered very well along with the rest of the economy, resulting in increased interest from foreign real estate investors and homebuyers.
In this post, we’ll take a look at the current state of Spain real estate prices, how it is expected to change over the course of the year, and how this may affect your decision to buy a home or invest in commercial real estate in Spain.
Spain real estate prices: a global view
Real estate prices in Spain have been rising steadily and sustainably for the past few years now, and they are projected to continue in that upward trend throughout 2018 and at least into 2019, barring any major economic surprises. Over all, Spain real estate prices rose approximately 6.9% in 2017 and estimates are that they will increase another 6.1% this year. Looking specifically at the residential sector, houses for sale in Spain showed a price increase of approximately 1.67% in 2016 and 4.47% in 2017.
It is important to recognize that, even with a few consecutive years of price increases, the current state of property for sale in Spain is nowhere near the peak values of 2007, which dropped by nearly 42% between the years 2008 and 2015.
Investing in houses for sale in Spain
This newly healthy real estate market has put Spain on the map again as a favorite for expats and foreign nationals looking to buy a vacation home. Home sales increased by 14.6% in 2017, and most of this was driven by foreign buyers from the United Kingdom, France and Germany, with a growing presence of investors from the Middle East and Asia.
Of course, the prices of houses for sale in Spain varies widely by region, with the highest prices generally being found in the largest cities, on the Mediterranean coast, and the islands. Average prices in parts of Malaga, Palma and Ibiza can easily reach €1 million, while some smaller towns on the outskirts of cities have median home prices as low as €40,000. All of these properties are being scooped up by people looking for an investment in real estate or simply a place to enjoy Spain’s fantastic weather and low cost of living.
Commercial real estate in Spain
Like the market as a whole, commercial real estate in Spain has also shown price increases that have made them an interesting target for foreign investors. While in many cases these properties are being bought for the purposes of starting and operating a business, some are purely for investment purposes.
Recent Spanish legislation has made it easier than ever for high-value foreign investors to get residency in Spain using the so-called “golden visa”. With this scheme, people with at least €500,000 of foreign money to invest in Spanish property can obtain a residence permit with fewer hoops to jump through compared to other types of visas. The best way to go about this is through a lawyer specializing in real estate and investments for expats in Spain. These professionals can determine if you are eligible for a golden visa and arrange all of the paperwork for your real estate purchase, residency permits and anything else you might need.
With Spain real estate prices low but steadily rising, it is still a buyer’s market. Whether you are looking at houses for sale in Spain for personal use or some other type of property for sale in Spain, now is a great time to start your search.