Thinking of Investing in Property in the UK? Think Spain.

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LOOKING TO INVEST IN PROPERTY? Right now, Spains’ housing market is continuing its’ recovery and there are some bargains to be had and plenty of choice. With a strong Pound, growing market confidence, and political changes within the UK, if you’re looking for a safe property investment with immediate rental income and high long-term return on your investment, think about Spain.

The latest figures published on Friday by the Spanish Ministry of Development show that in terms of sales volume the Spanish property market continued its recovery during the second quarter of this year, with a total of 104,530 transactions representing an increase of 13.9% compared to the same period in 2014.

The figure is the highest second-quarter total since 2010, and once again the majority of the increase is due to increased activity in the second-hand property market, where sales figures rose by 18.5%, while new Tucatz web design, print services, ciudad quesada, torrevieja sales figures fell by 9.5% and accounted for only one eighth of the market.

Sales figures have now been rising for six consecutive quarters, and in the second quarter of 2015 decreases were reported in only three of the seventeen regions: Navarra, Extremadura and the Basque Country. In the first six months of the year, according to the Ministry’s figures, the 190,135 sales represent a 9.7% rise compared to 2014, with the totals having fallen only in Castilla-La Mancha, Extremadura and Navarra.

The figures published by the Spanish Ministry of Development suggest that the recovery in demand for housing continues to be fuelled to a significant degree by British and other non-Spanish buyers and investors, with more than one in six sales during the second quarter of this year having been to non-resident buyers.

From a total of 104,530 property sales, 17,307 involved purchasers resident in Spain and another 1,244 were bought by non-residents, together accounting for 17.7% of the overall figure.

The role of the Costa Blanca cannot be underestimated in boosting this figure, as almost a quarter of all sales to foreigners (4,522) were reported right here in the province of Alicante. This means that over half of the market in the province is created by demand from non-Spaniards, who accounted for 50.6% of the 8,928 transactions.

According to Paul Van der Schraelen, Director of Novapaso Estates Real Estate Agents based in Gran Alicant, the increase in recent interest from UK buyers stems from a favourable exchange rate and recent changes in UK legislation. “We’re seeing a great deal of interest from British buyers keen to capitalise on the strong Pound, and changes to the ways in which people can access their private pension benefits has meant that some customers are choosing to invest in foreign property, because of the immediate return of investment as properties are put on the rental market”, he said.

You might be surprised how cheap property is in Spain compared to the UK. Click here to visit Novapaso Estates property website and see what you could buy with your budget.

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Spanish Property Sales Leap 34% Causing Shortage Concern

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AS SPANISH PROPERTY SALES REACH A THREE YEAR HIGH local estate agents warn that the existing stocks of resale villas and apartments across the Costa Blanca could soon dry up. Driven by a strong Pound, growing market confidence, and political changes within the EU, demand for Spanish resale property is on the increase.

Homes that have languished on the Spanish property market for years are being smartly snapped up by savvy foreign investors. The latest data issued by Spain’s National Institute of Statistics (INE) illustrates that sales of resale property surged over the last 12 months, with a recorded annual increase of 34% in completed sales transactions nationwide.

Last quarter’s data provided by the UK’s leading real estate website for homes abroad, Rightmove Overseas, shows that there is significant interest in acquiring Spanish property across the Costa Blanca amongst UK buyers, with an 85% increase in the amount of searches for Alicante regional property performed by potential buyers for the year to date.

According to David Loughlin, Property Consultant at Carols Casas Estate Agents based in La Marina, the increase in interest from UK buyers stems from a favourable exchange rate and recent changes in UK legislation. “We’re seeing a great deal of interest from British buyers this year keen to capitalise on the strong Pound, and changes to the ways in which people can access their private pension benefits has meant that some customers are choosing to invest in foreign property, instead of the more traditional choice of an annuity”, he said.

“For now, prices remain very attractive for British property buyers, and a modest detached villa with a private swimming pool can still be purchased for the price of a flat in Yorkshire“, he pointed out. “Spain has made a remarkable and consistent financial recovery over the last few years, restoring consumer confidence in Costa Blanca’s property market. With uncertainty over the UK’s proposed EU referendum and the implications that a British exit from the Eurozone might hold for Brit’s at home, many potential buyers have adopted an ‘it’s now or never’ approach to their foreign property purchase”, said David.

But he warns that British buyers are facing ever increasing competition for resale properties from other foreign investors from Holland, Belgium, and Russia. “Resale properties don’t attract the premium that new build properties do, they offer excellent value for money as a second home or investment property”, he explained. “We’re receiving growing interest from Russian customers looking to invest in Spanish property following the financial turmoil and political instability in Greece and Cyprus. You just don’t get that here in Spain”.

Local housing stocks are being further exhausted by investors, as they place their properties into holiday or long term rental to make an active and immediate return on their investment, in addition to the passive returns of an expected longer term increase in value. “There is a genuine local demand in the Torrevieja area, particularly for long term rental properties from people who come to work in the recovering Spanish economy”, reports David.

“With fewer resale properties coming to the market locally we’re in the profound situation that, if things continue to escalate as they are, we may end up with very little to sell”, he said.

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