The economical meltdown of the last few years has adversely affected property markets around the world. As one of Europe’s largest property developing countries Spain has seen its construction and property re-sale bubble burst, flooding the market with many unsold properties, mainly in the form of new apartment blocks. The effect of the market crash has meant that property prices have reduced drastically throughout the western world, in some instances by as much as 25% and in isolated instances even more and this has been evidenced on the Spanish coast.
While some geographic areas have been hit particularly hard, other areas like the Costa Blanca and in particular desirable areas such as Moraira have maintained lesser reductions and higher levels of demand by comparison.
- With reduced confidence in the stock market more and more people are becoming disillusioned with their poorly performing pension and savings plans, PEPs and stock market investments. The number one priority has now become the search for opportunities that can give a satisfying return on investment, with reduced property prices there are still some incredible bargains currently on offer to provide such opportunities.
- Spain still offers value for money and excellent returns and villas purchased in the right location remain the favourite and most lucrative form of investment.
- Whilst property prices in Spain remain a good deal lower than those in many areas of the UK, there is the opportunity to purchase a holiday or second home, or a permanent home to relocate or retire to Spain.
- Spanish properties are becoming more viable and popular and are regarded to be excellent investment for personal vacations and holiday rentals, similar in essence to the “buy to let” scenario which is so popular in the UK.
- Off-plan purchases are a popular investment option for those in the know. You can avoid the full cost of paying for the property by paying in installments and selling the property on for a much higher price prior to project completion. However this scenario has to be approached with caution in the current financial climate
- Spain remains the most popular choice for tourists utilising self-catering accommodation but we would recommend that only the purchase of a property (minimum two bedrooms with a pool) should be considered, in that there is a high demand for this type of accommodation.