According to experts, the outlook for Spanish real estate is for continued price growth and steady demand. And these trends will cause the development of new phenomena, which are also worthy of attention for anyone interested in a profitable purchase of real estate in Spain.
Shortage of housing in popular locations
Due to the country’s growing popularity among tourists from all over the world, demand for local properties is so high that it exceeds many times the supply. In some locations new sites literally have no time to build, and existing projects are bought up literally at the blueprint stage. This is typical of the Mediterranean coast and popular resorts.
The most acute problem of lack of new buildings is felt on the Costa Brava. In Barcelona, the situation can be called critical. According to official figures from the Spanish Community of Valuers, in early 2019 there were 300 finished and under construction new buildings in Barcelona. In 2016, there were 2,793 such properties in the city. This means that in two years almost all new properties in the Catalan capital have been bought up. This sought-after location is also characterised by sales of flats at the project stage. And all this is against a background of high prices – from €300,000 per flat in a multi-storey building under construction. Experts warn that under such a situation, probably, in the second half of 2019 to buy a new building in Barcelona will be completely impossible.
One of the main reasons for this situation, experts believe the new bill, according to which the developer must transfer up to 30% of the cost of construction in favour of the city treasury. These funds will be used to build social housing. These conditions are not too much liked by developers, so they are not yet eager to start new projects in the city.
In other words, if you want to buy a flat in Barcelona, you should definitely hurry. There is a risk that the desirable properties in this city might just run out.
The benefits of renting
Along with the prices and demand, the profitability of Spanish property grows. Last year that figure gained 7.4% p.a. In 2017 it was 7.1%. This suggests that it is profitable to rent property in Spain. From an object worth €100 thousand, the annual income will be €7400. But even more attractive than housing are offices. Their yield is 8.4% per annum. Garages can also be rented out, but this is not so lucrative – only 5.1%.
