The advantages of buying a Spanish property in 2018
Buying property, whether in the UK or abroad, is rarely straightforward, so it's important to find out which countries and regions will suit you best and to look into property prices so that you can be as certain as possible that you're making a good investment.
Luckily, there's a lot of information out there, and according to current reporting, it seems as though now may be the perfect time to buy property in Spain.
Several property industry commentators are, once again, urging those who have been hesitant about moving abroad, to do so now because the favourable property market has turned Spanish houses into a worthwhile investment.
We recently wrote about the likelihood of Spain's low property prices soon soaring, but it is now clearer than ever that the market will recover and how beneficial a purchase at this time could be.
According to a report by the property-focused business school Instituto de Práctica Empresarial (IPE), there will be a nationwide average property price increase of 6.1% in 2018, meaning that a property bought last year for €400,000 is likely to increase in value by just under €25,000 by the end of the year. Madrid, Castile and León, and the Canaries are leading the way with property value increases, and are expected to see growths of 10.8%, 8%, and 7.7% respectively.
Previous market leader Catalonia is predicted a slow down to 4.9% as the recent political tensions in the region – the Catalan Crisis – takes their toll.
Since the 2008 financial crash, the Spanish property market has been gradually recovering. Over the last four years, the IPE estimated that prices had gone up by 21%, but they still have not reached their peak (they're still a long way from reaching the heights of the prices during the property boom before the crash) and the impressive growth is forecast to continue.
In even more encouraging news, the Association of Foreign Investors in Real Estate (AFIRE) ranked Spain's property market as the fourth most rewarding investment opportunity in the world, an improvement over its sixth place last year and one place above the UK's market. This could partly explain why figures from the National Institute of Statistics showed that Spain's new home sales shot up by 30% and resales by 26% in October 2017.
It's not just the potential financial benefits of the soaring property market that make Spain attractive to expats. There are many other great reasons to move to Spain, too: its warm climate and relatively low cost of living when compared to other top European destinations to name just a few.