Investing in Spanish Property - a New Strategy

Buying property in Spain has long been the British thing to do!  With roughly 300,000 Britons already calling this country home and hundreds of thousands more visiting Spain annually, the evidence of Spain’s real estate boom lies in the numbers – but with recent negative press reports claiming the investment market in Spain isn’t attractive any more, is Spain still worth considering?

Well, the unique history, incredible beaches and cosmopolitan cities all serve as major attractors for buying property and living in Spain; add in a slightly lower cost of living compared to the British standard (if property is taken out of the equation of course) and the legendary Mediterranean climate, and the reasons why Spain has and continues to appeal are actually quite clear.  So, as Spain has an evergreen appeal here’s an article about investing in Spanish property and adopting a new strategy!

Whilst it is somewhat true that Spain’s star isn’t shining as brightly as it did in the past, the country is far from down and out.  Even with recent property development booms in Morocco, Cape Verde, Egypt, Bulgaria and other locations for example, Spain continues to attract interest. 

In 2005 alone the Guardian newspaper reported that more than 650,000 new residents made their way to Europe’s longstanding favourite playground, and according to the Foreign & Commonwealth Office, Britons make a whopping 17 million visits to Spain a year proving there is massive demand for rental stock and resale homes.

So there are new strategies that investors are taking when buying property in Spain – yes the landscape is changing as far as focus, but no, it is not changing in regard to the overall appeal of Spanish property and further proof of this fact if it were needed comes from the Association of International Property Professionals who says that Spain remains in the top 2 for British property investors.

Buying property in Spain is still a solid choice it seems, but new trends are developing for property investors.  Beyond targeting resales at expats who want to make Spain their home, investors are zeroing in on longer-term returns on their properties according to Off-Plan International. 

Rather than invest for a quick turnaround, buyers are now looking at holiday houses.  They are also keeping their sights set on investments that will pay off over the long run.  This means they are buying property in Spain to hold for the medium to long term.  Whether it’s for personal use a few months out of the year or to earn rental incomes from, many investors are no longer looking to make a quick buck from Spanish property.

With the Costa del Sol remaining hot, along with properties in Madrid, Toledo and Barcelona for example, British investment in the Spanish property market remains strong.  The property professional association reported that GBP 20 billion was spent by UK investors in 2006 for example and average property prices paid out fell in at less than GBP 100,000.

Investors looking for property in Spain will find the options are many.  From the coastal regions that are so popular with beach-goers to the in-land cities that are famous for their historic and cultural sites, the attractions of Spain are timeless.  Buying real estate in Spain is still an attractive proposition, but many are no longer looking for instant financial gratification.

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