Finally, a stable government is in place in Spain, with a new Prime Minister firmly in the saddle. So things look good for Spain yet again, which is good news for you if you’re looking to buy or sell property in Spain online.
Real estate construction is back in full swing in Spain, 8 years after the property market crash. Investments are flowing in after many years of inactivity and there is a real estate boom in the cities of Madrid, Barcelona and Valencia.
There is a huge demand for homes and apartments from the middle classes in all cities in Spain, including in the industrially powerful regions such as the Basque Country. All of the uncertainty of the past 9 months, during which there wasn’t a government in place in the country, have melted away.
In fact, property investment accounted for about 35 percent of the €22 billion foreign investment that has come into the country despite the pandemic. This is great news indeed. Already, the real estate activity is 80 times higher than it was in which is an amazing development.
The market has been encouraged by the increasing presence of overseas investors. In fact, foreign investors completely dominate the real estate sector in Spain. Local investors and real estate developers play second fiddle to them.
The 2008 financial crisis was a brutal one for many homeowners in Spain, and nobody has forgotten it as yet. It knocked off 40 percent off the home prices.
But since then, the market has staged a smart recovery and we are not far off from the peak 2007 home prices. Spain has been helped by strong economic recovery and growth in employment generation. This has created a strong demand for newly built housing.
Madrid, the capital of Spain, has been the most impressive performer, ranking fourth in the list of the top European cities from the point of view of real estate developers and investors, compiled by PwC.
Madrid also ranks 9th in a global survey conducted by EY of the best cities for property investment.
CBRE, a top property consultant, expects a demand for at least 180,000 new units a year over the next 10 years in Madrid. Despite being a world class city, Madrid is surprisingly affordable compared to London and Paris.
As of now, the average price of luxury real estate in Madrid is €10,000 per square metre, which is actually much lower than that in London and Paris. Wealthy Latin Americans are the biggest buyers of Madrid property. For them, Madrid represents a secure investment, and they feel that there’s no risk of losing their money.
Certainly, Britain’s decision to leave the European Union through the Brexit referendum wasn’t a positive decision for the second-home market in Spain, where Britons are the biggest buyers.
But the impact hasn’t been as high as it was earlier feared to be. Britons continue to be big buyers of Spanish property, especially in Costa del Sol, Andalusia and the Canary Islands. This should be positive news for you if you have a property for sale in Spain.