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Over the years, residential property has doubled in price every 7 years. Official figure for Spanish property open market value growth is 17.5%. Therefore investing into property is probably the best place for anybody’s money.
There will always be fluctuations in market prices. In spite of that, everybody agrees that property has always provided a consistent long term capital growth for the owner.
There is a great number of factors that have been and will be affecting consistent growth of property located on Spanish Southern Coast and the Islands. Here are the some of them:
1. Spain as location for retirement
Spain has been, is and will be a place where people from all over Europe, especially UK, Ireland, Scandinavia, Germany, Switzerland and Netherlands want to move to after the end of their professional careers.
2. Spain as location for a holiday home
For any European, who is considering owning a holiday home – Spain is usually no 1 destination in Europe to consider.
3. Spain is a top tourist destination
Weather, history, culture, developed infrastructure and lifestyle attracts millions of tourists to Spanish Southern Coasts and the Islands.
4. Spanish are buying holiday homes
Spanish are used to having a family holiday home. More and more well off Spanish are buying holiday homes on Southern Coast.
5. Property investments in Spain are considered low risk
Global financial institutions and funds (especially US, Australian, German, UK and Scandinavian) are now investing more and more into overseas property because it offers secure long-term gains and little to no risks, compared with the Stock Market.
6. Spanish property market is stable
Spanish property market as well as global is relatively stable and, unlike many investments, does not suffer from rapid overnight fluctuations. Property offers a safe investment provided the correct approach is adopted.
7. Spain is top location for second homes
Major real-estate groups have determined that residential tourism has become one of the most significant phenomena in Spain over the last few years. Spain is in first place in relation to other EU countries, with 32.2% of properties as second homes or surplus housing. Portugal, Greece and Italy occupy the following positions, at 26.9%, 22.7% and 17.7% respectively. Therefore, it is clear that Southern Europe is far above the EU average in this respect in contrast to countries like Germany, Holland and the UK, which have housing deficits.
8. Real estate investments in Spain increased by 18.7% in 2005
Consequently, foreign investment in Spanish real-estate has increased by 18.7% to €7,179million in the last year, representing 0.95% of Spain's GDP - the highest it has been in its history, according to the Bank of Spain and La Caixa. A total of 115,000 holiday homes were bought by foreign investors in 2005. The British led the way, comprising 36% of investors.
9. Property appreciation in Spain increased by 74.5% over the last 5 years
Investing in property has always been profitable even more so on the Spanish coast. Foreign demand has resulted in a dramatic increase in house prices on the coast, rising by 74.5% over the last 5 years, with a further 18.5% increase forecast by the end of 2006.
10. Experts predict 30% increase in sales in coastal regions in Spain
In the next 3 years, a 30% increase in sales in coastal regions is predicted. According to APCE (The Association of Spanish Construction and Development), the demand for second homes will be between 175,000 and 180,000 by 2008. Almost half of this is expected to be bought by British clients.
11. Property in Spain is affordable
High per-capita income in the UK. British citizens are often unable to buy property in Britain because of high market prices, which are disproportionately inflated in relation to the size of the property and its location.
12. Spain is a golfer's paradise
There are about 250 golf courses in Spain with a further 200 planned.
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