home > spain property investment

Spain Property Investment

Property investment in Spain and partculary on the Spanish coasts has been popular with international investors for many years and Spain is still the favourite location for UK investors due to many factors:

• Large number of low cost airlines operating from over the UK to many destinations within Spain.
• Many buy-to-let property investors look to secure a rental income from their investment property and Spain is one of the safest options for rental yields, mainly due to the mature and booming tourist industry which over the years has proved it can reliably satisfy this requirement.

The Spanish housing market offers significant benefits to investors. The market is buoyant, and relatively transparent. A comprehensive legal framework underpins both the purchase process and rules of property ownership, and ensures relative security for investors.

Booming Tourism Market

Spain is hugely popular with tourists, ranking second in the world in both tourist visits (behind France) and in volume of sales, in which it is outdone only by the USA. (Source: Euromonitor International, Travel and Tourism in Spain).

The popularity of Spain as a tourist destination continues to grow; the number of visitors increased by 4.5% in 2006 to 58.5 million, according to the FRONTUR Survey, Ministry for Industry, Tourism and Trade, with a further rise to 59.3 million in 2007, according to figures from the World Economic Forum.

2.8 Million Foreign Residents (and still growing)

According to recent statistics over 2.8 million registered foreign residents live in Spain, not to speak of the increasing tourism figures, Spain is without doubt one of the top destination for foreign property investment. The Spanish Ministry of Tourism predicts that more than one million foreigners will set up home on the Spanish coast in the next six years.

This combination of performance and security makes the Spanish market highly attractive to overseas investors, an estimated 1.5 million of whom are expected to purchase property in Spain in the next five years.

Why Buy Investment Property in Spain?

A Trusted Entity

• Overseas property investos are returning to more established, stable worldwide destinations. Spain is still the number one overseas property location for British buyers, where language, legislation, taxation, religion political and economic stability and the infrastructure are known and trusted entities. Meanwhile northern European second home buyers and retirees are happy to find a nearby destination where property prices and the cost of living are still lower than “back home".

A Well-Trodden Path

• Plenty of expert, readily available advice and finance on the subject of real estate investment in Spain provides buyers with a good basis with which to go ahead. Residential home buyers and buy-to-let property investors are safe in the knowledge that buying property in Spain is a straightforward procedure and, with the help of an independent lawyer, the purchase of a Spanish home is relatively trouble-free.

Tourist Appeal

• Spanish tourism continues to soar and currently attracts just over 50 million tourists per year. As the second most popular holiday destination in the world, it is ideally equipped for tourism, with its modern and highly developed supporting infrastructure.
• The Spanish Ministry of Tourism predicts that by 2025, 3 million foreigners will have come to Spain to set up a second or permanent home, representing treble the figures of today. These figures clearly indicate an ongoing demand for Spanish homes and a buoyant climate in which to invest. From major cities, golf, ski and beach resorts to numerous beautiful national parks, Spain offers endless opportunities for recreation and relaxation.
• A fantastic climate, particularly in southern Spain and succulent national cuisine all blend beautifully with a vibrant culture, making Spain the huge success it is today. As tourism continues to thrive and expand, buy-to-let investors are cashing-in, particularly in prime resort areas; if you get it right, you could rent your property out for six months of the year to cover costs in addition to using it yourself, free of charge, for the rest of the year.
• Budget Air Revolution With an increase in direct budget air services to Spain’s nine international airports, as well as a heyday in online bookings, property in Spain supports an ever present need amongst tourists for economical holidays.