Spain is a well-developed country with a stable economy and a high standard of living, where various carnivals and festivals are organized annually. All this is combined with a wonderful climate, picturesque seashores, and stunningly beautiful architecture that has preserved the spirit of the Middle Ages. The Spanish coast is densely populated and dotted with many shopping centers, shops, and restaurants offering numerous attractions for visitors.
All these facts make the real estate market in Spain extremely relevant for local and foreign buyers, developers, and investors. Real estate transactions in Spain are carried out in a completely transparent manner, which minimizes the possibility of fraud or errors in the purchase and sale. Foreigners only need to obtain a special identification number (tax number) and open an account with a local bank. These procedures with proper transaction planning will take no more than an hour. It is also important that foreign nationals can obtain a mortgage from a Spanish bank to purchase real estate.
See if this investment is worth it in our article.
Over the past year, many people have taken advantage of the money saved during the pandemic and invested it in real estate, including in Spain. The purchase of apartments there by foreigners has increased over the past year by 28.5%, compared to a 1.8% rise for Spanish buyers. The most significant increase has been for non-residents without Spanish citizenship. They made 45% of all transactions with foreigners, while the remaining 55 per 100 were made by foreigners living in Spanish territory. That is, one in five homes sold in 2022 was acquired by a foreign buyer and in one in ten cases the buyer, in addition to not having Spanish nationality, had not lived in the country until the time of purchase. The brokers' explanation is that prices are more affordable compared to neighboring countries. At the same time, the climate, the sea, the food, and the hospitality of the locals make the country more attractive.
In addition, according to analysts, Spain is also currently one of the top three countries to buy a home among higher income earners. These are buyers mainly from Europe and the US, and the high interest in luxury properties is driving up their prices.
In the first three months of 2023, over 3,400 houses and apartments were sold to foreigners in the Spanish province of Malaga. The southern province has access to the Mediterranean Sea and is part of the vast and coastal Costa del Sol region. The number of transactions there has jumped by 18% compared to the same period in 2019. House prices in this region have increased by 39 percent since the start of the pandemic. On average, houses in Málaga sell for $1.3 million, more than in Madrid or Barcelona.
Experts attribute the increased interest of real estate buyers in Spain on the one hand to the strengthening of the dollar, but also because of the possibility of obtaining a residence permit by investing in the country's economy, including through the purchase of a home.
Buying a property by the sea in Spain is an excellent choice for people who like the luxury lifestyle, and are enchanted by the variety of entertainment and constant revelry in Spain's seaside resorts, as well as the abundance of good food.
The real estate market in Spain is full of diverse and attractive offers. Depending on what you need, in Spain, you can find luxury holiday properties, rental properties, apartments in modern residential complexes, typical Mediterranean villas with beautiful sea views, and secluded houses with impressive balconies.
One of the biggest advantages of buying a seaside property in Spain is the possibility of generating income by selling or renting.
Renting is a great way to benefit from your investment by generating a steady income from tenants throughout the year or during the summer season if you are not using the home yourself. The price can vary depending on the intensity of the season, and if your property is in a good location and in good condition, you're likely to enjoy a good profit.
If you decide to buy a property by the sea in Spain, look for coastal towns that have a steady flow of tourists, attractive rental incomes, and a strong holiday rental market. Factors such as proximity to tourist attractions, access to the beach, and availability of amenities can all contribute to the attractiveness of your rental property.
Popular beach destinations attract many tourists during the summer season, making properties in these locations highly sought after. If you decide to sell your property in the future, you are sure to meet potential buyers. You will also be surprised to learn that some people holiday at the seaside not only during the summer months and enjoy the solitude and beauty of nature in spring and autumn.
Sun, sun, and more sun! In Spain's summer resorts, you can enjoy 300 days of sunshine, mind you- a year!
Living near the sea brings with it a number of health benefits to your health. The sea offers a unique atmosphere that is rich in negative ions and salts, which have a beneficial effect on the respiratory system by helping to better absorb oxygen and have a calming effect on the mood. As far as physical health is concerned, being close to the sea encourages an active lifestyle and regular physical activity, thanks to the opportunities for beach sports and walks along the coast. Finally, seawater and salt have a beneficial effect on mental health and can help reduce stress and calm the nervous system. The sound of the waves and the sun also has a calming effect on the psyche and brings us into a state of relaxation.
Investments in real estate by the sea should be approached from a long-term perspective.
It is a good idea to calculate the potential return on investment in advance, taking into account factors such as the purchase price of the property, ongoing maintenance costs, potential rental income, and property appreciation over time. Consult with real estate professionals or financial advisors to perform a thorough analysis of the expected return on investment based on your investment goals.
Location plays a vital role in the success of your investment. Choose a coastal area that is in high demand, offers attractive amenities, and has good accessibility. Look for areas with a growing tourism industry, proximity to popular attractions, and amenities such as beaches, restaurants, shopping, and recreational facilities.
Additionally, coastal property investments can rise over time, but it's important to have patience and be prepared for market fluctuations. Evaluate your investment horizon and financial goals to determine the appropriate time frame to hold the property.
Spain has a population of 46 million, mainly concentrated on the coast. This is where the most sought-after Spanish properties are for sale - the Costa Blanca region with the main towns of Alicante, Benidorm, Denia, Javea, and Torrevieja; the Costa Brava with the famous Barcelona; the Costa del Sol with the popular Malaga, Marbella and Costa Dorada. All these resort towns are popular not only with tourists from all over the world but also with foreign real estate investors. Owners of an apartment, house, or commercial property in some of these coastal towns are privileged as there is a high demand for rental properties, and selling the property brings great profits.
All of the above makes investing in a luxury property on the Spanish seaside a desirable choice for those looking for a high-quality lifestyle, a beautiful coastal setting, and potential investment opportunities. However, it is important to conduct thorough research, work with reputable real estate professionals, and consider your personal preferences and financial circumstances before making a purchase decision.
Buying a prime property by the Spanish sea can be a long process if you don't have a trusted ally by your side every step of the way. Unique Estates consultants are always on hand to help you and will be happy to help you realize another one of your dreams - buying a luxury property in a beautiful and exotic location in Spain. Do not hesitate, to contact us!