Spain was recently voted as the second most popular country for homeowners looking at entering the property market. A recent property study focused on first-time home buyers found that second only to the United Arab Emirates, Spain was the most attractive destination for new investors.
One of the reasons for this was that the country recently offered over a 2 percent increase in salaries as well as a 6 percent decrease in property prices. Also mentioned in the report is that the countries which showed the biggest increase in property prices also showed the slowest salary growth. This would make it nearly impossible for first-time buyers to join the property market.
More affordable properties such as cheap Cabo Roig property attracted more young investors as the country also showed a remarkable increase in salaries, making it far more affordable to buy a property. The bottom of the Spanish property market fell out during the global financial crisis, but it has also seen the best comeback of the affected countries.
Many of the properties in Spain were repossessed by various banks and new investors are finding that the prices now are still lower than what they were when the country’s economy was at its peak. Having said this, the property prices are slowly creeping up as the country’s economy recovers.
Over 34,500 property sales were recorded by the Spanish Land Registry in January last year. The most popular destination for foreign buyers was Balearics which experienced an increase in property sales of 40%. Girona, Barcelona, and Tarragona followed close behind with a marked increase in property sales. Popular holiday destinations including Costa del Sol were also featured for having increased the number of property sales, primarily by foreign nationals.
The Costa del Sol coastline suffered huge financial loses during the recent economic crisis and many of the homes along the 160km coastline were repossessed. The beautiful rugged coastline has since shown remarkable signs of increases in property values, particularly by British investors. Some of the areas which have shown the biggest increase in sales include L’Estartit, L’Escala, and Calella de Palafrugell. The fall of the pound has also not had a great effect on the boom of property sales.
Those investing in Spanish property are likely to see massive returns in the not too distant future. According to specialists, the property values in Spain could not have fallen lower than they did in 2008. The worldwide economic crises certainly took its toll on the prices of property in the region, but sharing a positive outlook on the situation, the prices soon increased enough to allow for investors to look at Spain as a lucrative investment opportunity.
Spain has for the longest time had massive international appeal. It was widely reported that a staggering one in every five properties in Spain belongs to foreigners. This boosted the market even further giving Spain a very healthy property outlook. With all that is attractive in Spain, it is inevitable that the property prices would increase. This has already been seen in many of the major cities.