Buying property in Spain is profitable: where and what?

Buying property in Spain

Spain is in demand now. Real estate prices are rising, but the peak pre-crisis indicators are still very far away. Therefore, in the foreseeable future, investors have nothing to fear. You just need to choose which goal is in the first place – to save money or to earn? What is profitable to invest in Spain?  Real estate agents in Spain-Real.Estate will help to understand. 

Real estate market in Costa del Sol

The crisis ended at least two years ago. What’s more, cost of property in Spain and demand are steadily increasing. Many foreign investors are lamenting that they did not make a deal a couple of years ago. The market has grown noticeably during this time. There is always a demand for the Costa del Sol. The French, the Dutch, the Belgians buy real estate without even coming to the place. They watch commercials, get acquainted with project plans, documentation, check everything and make deals through agents. 

A construction boom has begun in the Costa del Sol. Many new residential development projects are being laid. Besides, it is very profitable to buy real estate under construction. At the initial stage, you will receive an object at least 25-30% cheaper. In the process of construction, the developer gradually raises the price. For instance, there was a project where a two-bedroom apartment cost EUR 305,000 in the initial phase, and EUR 550,000 in the final phase.

The profitability of renting housing on the Costa del Sol is from 4% per annum. The main thing is competent management. An option with a higher ROI is apartments in small boutique hotels. You can earn 7-8% per annum. Moreover, such real estate is easier to maintain, since the owner does not need to look for a management company. 

Property in Barcelona, Costa Brava and Costa Dorada

Everything has been getting more expensive in Barcelona for several years. But on the coasts, the growth is still almost imperceptible. Prices are not falling, but so far it is growing very slowly. Therefore, there are properties that are profitable from the point of view of price-quality ratio. For instance, a 90-meter penthouse with the same terraces on the second line from the sea in the most prestigious area of Calafel (about 50 km south of Barcelona) is offered for EUR 182,000.

Another interesting segment for investment is commercial real estate in Barcelona. The development in the city is dense. There are few new projects in the central areas, the cost per square meter is rapidly increasing. In addition, many owners in a growing market are holding properties and waiting for prices to become even higher. All this ensures a shortage of offers and spurs demand. Despite all the difficulties, it is almost always possible to find a suitable offer for each specific buyer on the real estate market. The main thing is to have time to buy. 

In Barcelona, the average ROI from renting commercial real estate is 5-6% per annum. Resort apartments on the Costa Brava and Costa Dorada is about 5%. 

Our assistance in buying real estate in Spain

Are you interested in property in Spain? Look for it on Spain-Real.Estate website. Here you will find only the best proposals from famous developers of the UAE. For more information about buying real estate in Spain, please contact the company’s agent. 

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By Tom Smith

Tom Smith is Content Manager at Amir Articles, Answer Diary and Mods Diary from Australia, studied BSC in 2010, Love to write content in general categories, Play hardcore strategy games all the time.

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