Real Estate in Spain

Real Estate in Spain

Real Estate in Spain

The Spanish property market is back! Spain has once again become a popular destination for residence of northern European nations seeking an escape to a sunny paradise. Yes, Spain’s allure is shiny once more as permanent and temporary residents seek to take up properties in the country. The southern regions as well as major hubs such as Madrid and Barcelona are attracting people as either investors or residents.

In contrast to real estate experts’ expectations, the asking prices for properties in Spain have risen. Physis Realty, one of Spain’s leading realtors, claimed the asking prices for properties had risen by 0.9% since April 2020. Few saw that increase coming due to the COVID-19 pandemic. For Spanish property owners, the news comes as a relief as the potential to sell their own properties and get a return-on-investment improves.

With Spain’s property market back on the upswing, there are a few things to take into account. The impact on tourism and the UK leaving the EU are two of them. There are also other issues that should be considered if you are seeking a property to buy for relocating to Spain or as an investment.

Spain’s property market is muy caliente!

The Spanish property market is hot right now. Buyers are taking advantage of property sales for investments for when travel to the country resumes. These investments could pay huge dividends down the line. As more people go on vacation, the amount of revenue that can be made could be high.

If you expect to get a discount on a property, you better think again. Property sellers are prepared to wait out the current period until they get the “right price”. Spain’s property valuations are not going to change due to global macroeconomic conditions and panic selling. Rather, prices may actually increase.

Remember, Spain is the second-most visited country in Europe behind France. In 2018, nearly 83 million tourists visited the country with many coming from the United Kingdom, Scandinavia, Russia, and Germany. Property owners believe they can recoup their initial investments and then some by hanging onto their properties now. The demand for them will only go up now that Global economies are starting to improve.

Summary of Real Estate in Spain

According to the Physis Spanish Property Index™:

  • The average price by square metre for Spain is €1,866 , an increase of 1.01% compared to the past 12 months
  • The average price for properties in Spain is €523,766 € based on the entire Physis Realty™ property stock
  • The areas with the lowest prices in Spain are Estremadura and Rioja

Areas with the Lowest Cost Real Estate in Spain

Estremadura 150,853 €
Rioja 136,833 €
Aragon 166,899 €
Castile-La Mancha 198,741 €
Asturias 169,784 €
Castile and Leon 152,622 €
Murcia 197,532 €
Cantabria 202,800 €

Areas with the Highest Cost Real Estate in Spain

Navarre 204,780 €
Basque Country 243,695 €
Galicia 249,981 €
Canary Islands 294,981 €
Valencia 297,048 €
Ceuta 320,000 €
Catalonia 650,971 €
Madrid 674,325 €
Andalusia 691,122 €
Balearic Islands 1,418,487 €
Melilla 4,400,000 €

Act Quickly for Real Estate in Spain

If you want to buy a Spanish property, you must act quickly. The market for foreign buyers moves fast and with a demand for residential properties as permanent homes, vacation houses, or investments, you will miss out on the best available locations.

The pandemic has changed the way many people think, act, and live. It has reminded many individuals that life doesn’t last forever. Therefore, individuals seeking a sunny Spanish home or part-time residence are going to act fast to live the life they may have previously put off.

Physis Realty Voted Best Realtor
Physis Realty Voted Best Realtor

Lasting Impact of COVID-19 on Buyers

COVID-19 hasn’t just changed the way work, shop, or live, but it has changed our desires for homelife. With more people staying at home due to safety reasons and working from home offices, the desire to have a unique space that makes us happy as increased. Your home is your sanctuary. It is the place people used to go at the end of the day to get away from the rat race of the world.

Now, home is where we work. Therefore, people around the world have been upgrading their homes over the last 18 months and some individuals have bought new, larger homes to provide them a home office.

Businesses around the globe have suddenly realized – why they hadn’t before is amazing – that much of the work conducted can take place outside of an office. In fact, most employees are more effective working from home than going to the office. Commutes, colleagues, and other factors produce ineffective work staff.

You now have the ability to work remotely without going into an office. Buying a home in Spain allows you to work remotely for a company in the UK or other parts of Europe, yet enjoy the riches of life in Spain. Not everyone can do this, but there are certainly more people now able to take advantage of remote working.

In Spain, even before the pandemic, more locals were buying properties up. Compared to the UK, the Spanish believe more in the “you only live once” mantra. While residence of the UK will save their entire lives for a small, dingy flat, the Spanish want to act right away. This mentality could see properties snapped up quickly once life returns to an even more normal beat in the country.

Getting Value for Money with Real Estate in Spain

Real estate in Spain has its expensive cities such as Madrid and Barcelona. These are major hubs that attract residence and tourists from all over the world. Yet, even in Madrid and Barcelona, you will find value for money. Compared to the UK or the Nordic European nations where every property to buy or rent seems expensive and too small for the price, real estate in Spain offers a lot of options.

For the same price as you would get a small flat in London, you could purchase a villa in a variety of places in Spain. Along with having a great, large home, you would have an incredible lifestyle and (depending on your location) non-stop sunshine.

Big cities in Spain such as Valencia, Malaga, and Sevilla are still considered value for money. Go outside of these larger cities and you should find even more properties for much less than back home.  For example, a property in Valencia compared to similar properties in Madrid or Barcelona could be 30% to 60% cheaper per square metre.

Valencia is one of Spain’s cities that is attracting buyers due to being a great place to live. It has expensive and more affordable areas to live. It also sits on the Mediterranean Sea, experiences great weather all year-round, and is a hub of culture.

Spain continues to be a hotbed of property activity. If you want to buy real estate in Spain, the property of a lifetime or an investment for the future, now is the time to act.

Physis Real Estate in Spain

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