In connection with rising inflation almost everywhere and the threat of a new global financial and economic crisis, the issue of preserving savings is becoming more and more optimal. According to many experts, one of the most profitable, reliable and effective investment options at the moment is buying real estate in Spain.
After the lifting of all restrictions imposed in connection with the Covid-19 pandemic, the number of purchases or reservations of properties by foreigners with a view to their subsequent acquisition has sharply increased. According to a number of large companies operating in the Spanish real estate sector, the National Institute of Statistics (INE) and notaries who register purchase and sale transactions, in the first quarter of 2022, citizens of other countries (primarily Germany, France, Belgium, Holland and Great Britain, joined by Poles, Czechs and Romanians) began to buy housing in Spain much more often.
In March of this year, almost 60 thousand transactions for the purchase and sale of houses and apartments were registered, which is 25% more compared to the same time period in 2021, and is the best figure since January 2008. Such a significant increase in the number of signed contracts is largely due to the fact that by that time inflation had reached record levels, and an increase in interest rates on mortgage loans had already been announced. Based on this, those investors who were planning to buy housing in Spain in a few months decided not to put it off for a long time – especially since prices, despite their constant increase, still remained and continue to remain quite affordable for the general public .
Housing prices rose the most in Spanish new buildings, reaching a historical maximum by April – 2,025 euros per square meter. At the same time, the average price of a property was 255,430 euros, which is 33% more than in 2007, when there was a construction boom in Spain. The most expensive place to buy housing from a developer in Spain will be in the Balearics (almost 590 thousand euros), where prices have increased one and a half times over 15 years, in the Autonomous Community of Madrid (350 thousand) and the Basque Country (300 thousand). Since the mid-80s of the last century, prices have increased annually by an average of 5-6%, and taking into account the rising cost of energy resources and building materials, this trend should continue in the near future.
Most investors chose housing located on the Costa Blanca (Valencian Community) and Costa del Sol (Andalusia), purchasing it both for permanent residence and as a “vacation property”. These same regions, as well as the Balearic Islands, are leaders in the number of purchases per hundred thousand population, and among the cities Marbella, Malaga, Alicante, Valencia and Torrevieja stand out.
New housing will enjoy increased popularity among investors who purchase it either for rental or resale, due to the fact that these apartments and houses fully comply with all modern requirements, including opportunities for remote work. As a rule, these facilities are built in closed urbanizations with a swimming pool, tennis courts, sports grounds (and sometimes a gym), playgrounds for children, parking lots and underground garages. It is much easier and more profitable to rent out or sell properties of this kind than those that are deprived of all these advantages – especially since the existing proposals definitely do not satisfy the growing demand from solvent clients.