|February 15, 2017||No Comments|
The housing market is strengthening in Spain with sales rising over 15% in the last year. Foreign buyers from Western Europe are buying up provincial property averaging at €1-2 million. But purchases of Spanish Property by Brits have fallen 50% since the Brexit vote in June – does this mean a lack of competition opens up deals and bargains for buyers?
According to the Spanish property experts at Kyero.com, the property crash officially ended in Q2 2014. One of the main advantages – and bargains – in Spanish property is that is has only been able to go up since it bottomed out in the crash in 2008. On top of this, Spain has rich appeal from inside and outside Europe.
So, though suffering Brexit and a drop in the value of sterling, UK buyers are still flocking to the Spanish property market for good deals as affordability for UK property dwindles. Bargains do still exist, and here are three hidden gems to lookout for in 2017:
1. Ibiza & Mallorca
The housing market in Ibiza is growing fast, and saw the average house price soar 20% in 2016 to over €1.1million. Why is it worth it? Well, Ibiza has always been a popular, picturesque and beautiful area, and Mallorca properties are sought after by the rich and famous, including royalty. Spain’s tax laws for high-net-worth earners means Ibiza is becoming a centre for international wealth. If pricing booms in cities like London have taught us anything, it’s that this behaviour tends to mean buyers will be quickly – and handsomely – rewarded.
Again boasting investment from international investors, Alicante has remained a strong real estate option even during the years post-2008. With beautiful provinces like Castalla that include large, affordable homes, old quaint towns, mountain views and easy beach access, a property in Alicante would certainly improve on its value in a short time as sales have been steadily growing and prices are, according to Kyero.com, 10-15% below the national average.
One exciting aspect of Almeria compared to the other gems in this list is that it has seen far less of an influx of development than its neighbouring towns and cities. This means it has kept its old-world charms and intricacies, but proves popular as a destination for tourists, expats and residents. Mojorca, Albox and Vera are trending destinations, while Q3 sales rose a massive 93% this year and the average house price is just a shade under €30,000 (half of the national average!). This looks to be snapped up by overseas buyers next year – bargain hunters will have to act quickly to secure a great deal.
So despite the high unemployment rate in Spain, and Britain’s own uncertain economy, one thing is clear: Spanish property bargains still exist if you know where to look, and these are likely to be in high contention next year. The growth in housing marketing, ascending sales figures and attractive terrain means that with a little effort, buyers can be literally sitting on a huge payday on a relatively small investment for 2017.