Has the Spanish property market seen its day? Ben gives us his view!

Closure of British owned businesses and a drastic decline in tourism in 2020 had many wondering what next? With over 15% of properties purchased in Spain, approximately 2%of that was purchased by Brits wanting to escape the typical British winters and enjoy the spoils of the Spanish costas. (the Costa del Sol and Costa Blanca in particular)

So what does this mean for the Spanish property market and should someone take a leap of faith and purchase a property?

Well yes, in fact it has not stopped people from buying! Many seasoned holidaymakers who are familiar with the area have not let recent events quash their dreams, quite the contrary, many have seen this as a brilliant opportunity to grab a bargain.

When Covid first reared its ugly head many developers were reluctant to reduce costs, most assumed the state of emergency would be short lived and business would resume back to normal in a few weeks. 

Now things are a little different with developers not only offering discounted prices but incentives such as upgraded kitchens, half price swimming pools and garage spaces.

Private vendors wanting to sell have followed suit mainly with townhouses and villas from expats returning back to the UK or second home owners wanting to free up capital.

Some have bought to obtain the ‘Golden Visa’ - what is the Golden Visa? 

The Golden Visa is a program created to encourage investment in various countries and in return offer residence or citizenship. 

Spain, Portugal, Singapore, Cyprus, Canada and Greece among others have benefited from this program and with Britain leaving the EU, it casts another ‘rubber dinghy’ to the property market.

For more information click this link - Golden Visa - Spain

Unfortunately many hotel chains have had to close for good and with hygiene and social distance being a top priority, future holidaymakers are now considering using sites such as Airbnb for their accommodation needs should they be allowed to travel later this year.

We have now seen a spike of investors purchasing property solely for rental investments especially as 35% of the 80+ million tourists visiting Spain in 2019 were using private accommodation according to the ministry of tourism.

It's safe to say that Spain will always be a holiday destination for many people due to its ease of access, vast array of blue flag beaches, culture, cuisine and sunny weather.

Among others, Spains usually sees visitors from the UK, Ireland, Italy, Germany and even the US. Something that not even the corona virus can stop for good.

For more information about holiday rentals click this link - Rentals

So let's look at some data and why I think Spain is a safe bet in 2021

• Spanish economy estimated to increase by 5% in 2021 and 4% in 2022
• Cost of build still low with the average price of €1,450 per m2 (national average)
• Mortgage rates and financing is favorable approximately 2.5-3%
• Tastes are changing - many are wanting to sell the traditional to buy the modern
• 300 days of sunshine
• One of the healthiest places to live
• Many Brits plan to keep a property in the UK and acquire a holiday home in spain helping the property market stay buoyant
• New destinations given planning permission to meet demand

So what can you do to realise your dream?

The property market in Spain is still an open playing field with something for everyone. It's a safe place to buy and can offer various exit strategies should your circumstances change in the future.

If you are looking for a property here the first thing I would recommend is do your research. Living in the digital era, information is literally at our fingertips and lots can be done online. Get to know the area you're buying in by reading reviews, watching youtube videos and speaking to friends and family members who have been here before. 

Next, find a reputable company you can trust! Finding the right property can be tiresome and time consuming. Why not save time by absorbing the knowledge of experts who live in the area and know the industry inside out.

They will be able to introduce properties and the surrounding location to you via video chat and act as your eyes and ears in your absence.

Once you have found what you are looking for don't be afraid to haggle. We all like a bargain so don't be afraid to be a little cheeky with your opening offer. 

HAVE FUN

Buying a property does not need to be scary or daunting, in fact, it can be exciting and fulfilling. If you find yourself getting the jitters then there may be questions you don't have satisfactory answers for.

Ask as many questions as you need - information is power.

Unfortunately no one has a crystal ball but we are resilient and things will get better...Hey, if it doesn't and there is another lockdown I know where I want to be.

Stay safe, stay healthy and feel free to contact me directly for more information. You can send me an email on ben@idealhomesinternational.com.

Thank you all for reading,

Ben Salfarlie