This is the Best Time to Buy Property in Spain. Here’s Why
Are you looking for a property for sale in Spain? There has never been a better time to start shopping for a house, apartment or villa for sale in Spain. There are plenty of reports, such as one by a UK based relocation service, MoveHub, that indicates that Spain is the best place to buy property for buyers from across the world.
Properties in Spain are priced very attractively. This is at a time when the employment situation has never been better in Spain and there has been a 2.2 percent rise in salaries.
As MoveHub explains, “Overall the report revealed that countries with the biggest property price hikes had unfortunately also seen the slowest growth in annual incomes, with some salaries in decline, whilst house prices rose. On the other hand countries with the highest salary growth enjoyed more affordable property prices or even prices in decline, making them the best places for first-time buyers”.
Real estate in Spain has picked up by quite a lot followed the prolonged slowdown that lasted 6 years, starting with the 2008 housing crisis. That is well behind us now. The Spanish economy has picked up in a big way recently.
The property market in Spain is in an early stage of its recovery, and has been doing well especially in regions such as Costa del Sol, Alicante, Valencia, Murcia, Canary Islands and Catalonia. Even regions such as the Basque Province, which saw one of the worst recessions over the past decade, have been doing well. Barcelona and Ibiza are the most popular areas in Spain, and it is here that the property prices have risen the fastest.
Alexander Vaughan, co-founder of Lucas Fox International Properties explains that there has never been a better time to get involved in the Spanish real estate market than now. He says, “We believe that this year has been a key turning point for the Spanish property market. After property prices bottomed out midway through 2014, 2015 saw modest price rises in prime regions. The recovery phase has continued throughout 2016, with the main difference being that price increases have not been limited to Barcelona, Madrid and desirable second home destinations.”
“We believe that a growing economy, low financing costs, good potential for rental returns and capital appreciation will continue to drive sales throughout 2017 and beyond,” Mr. Vaughan adds.
The Spanish economy has certainly shown excellent signs of growth, and with a GDP growth rate of 3.2%, is the fastest growing major economy within the European Union. Low interest rates have fuelled the demand for properties further.
Euribor, the rate at which mortgage repayments are calculated, remains below zero in Spain, which indicates that this is a great chance for homeowners to apply for fixed-rate mortgages. Fixed rate mortgage loans are usually 10 percent of mortgages but have grown to 53.3 percent this year, which is good news for those looking for a home or apartment for sale in Spain.