Where are Spain’s property hotspots?
Spain is undoubtedly one of the largest overseas markets for British investors and buyers. According to overseas mortgage specialists Conti, Spain made up almost half of all enquires for properties outside of the UK. The British are also the most common buyers in Spain, owning an estimated 170,000 homes and villas, more than any other expat community.
Spain’s property market suffered quite badly during the economic downturn and prices fell considerably. It has since recovered and is making ground, however, there are still some very desirable places where prices haven’t yet reached their pre-recession levels. It is these hotspots that can make the best investments, as prices look set to continue to rise.
Here are some of the best places to buy property in Spain.
Costa del Sol
It’s not hard to see why the Costa del Sol holds a place in the heart of many Brits. Boasting an average of more than 320 days of sun every year, this stunning stretch of Spanish shoreline regularly attracts the rich and famous, with upmarket resort towns like Marbella remaining exceptionally popular.
One of the great features of the Costa del Sol is its versatility. Ideal as a destination for a holiday home, you can also buy a villa as an investment or even as a retirement property for when you want to spend your golden years in the sunshine. This part of Spain is definitely at the high end of the market, but this makes it a very smart choice as these kinds of properties have not been hit so hard during the downturn and now look set to push upwards.
Possibly Spain’s most beautiful city, Barcelona’s mix of gorgeous beaches, pulsing nightlife, relaxed atmosphere and international prestige means it managed to weather the property market storms and retain value. What’s even better is that prices here are still relatively low compared to similarly esteemed cities around Europe, so you can still find excellent bargains.
With various options including apartments dotted through the streets of the old town to villas overlooking the beach, you can choose the property that is ideal for you.
While the suffering of the property market in Spain is well documented, there’s no doubt that the mainland took much more of the brunt than the islands. Over the course of the recession Spain saw property value drop almost 40 per cent, however, the Canary Islands saw a drop of 24 per cent. This shows the resilience of property here.
Of all of Spain’s islands, the Canary Islands definitely represents the best in investment opportunities with growing demand for holiday homes here. Perhaps this isn’t a surprise with the fantastic year-round weather and excellent facilities available.
Another island with big property potential is Menorca. Even compared to the famously sunny Spain, Menorca retains a very dry climate – perfect for British investors who can’t stand the wet weather in the UK. A popular tourist destination during the busy season, for most of the year Menorca remains quiet and relaxed; the ideal place to own a Spanish villa.
When you think of regions that suffered the most during Spain’s property market crash, it can’t be denied that Costa Blanca came off badly. Nevertheless, this is a highly desirable location that now has properties available at well below their peak prices. Spain’s recovery has undoubtedly been slow, but there are now signs that it is beginning to pick up a lot of steam. This means that the Costa Blanca will likely see impressive rises in prices very soon – now could be a great time to invest.
Much like Barcelona, the prestigious status of Madrid makes it a very attractive proposition to foreign investors. Spain’s capital is a haven of culture and historical intrigue, as well as benefiting from Spain’s excellent weather. With excellent transport links to the rest of Europe, this can be considered a fine option whether you are relocating to Spain, buying a holiday home or preparing for retirement.
Enjoying stunning architecture as well as an almost unrivalled array of world class museums, it’s easy to see why so many Brit want to call Madrid home.
Valencia has never been thought of as a popular place for Brits to buy as its position on the eastern coast of Spain has often been overshadowed by Barcelona. However, that looks like it is set to change as continued invest in the city has led to it gaining a reputation as one of the best places to live in the country.
Property sales have risen by more than 30 per cent in Valencia, according to Property Wire. Much of this seems to be due to the city’s growing reputation as a great tourist destination. With Valencia being hit during the recession, this only means that prices here are still currently lower than they should be.
About your questions…Sorry – but we do not offer relocation advice on an individual basis through Spain Buddy. There are a number of relocation experts who are better placed to advise you on your new life in sunny Spain.
by Mike James
Mike James is a regular traveller and frequent visitor to Spain, having lived in Andalucia, Valencia & Murcia during his time. First-hand experience of life in Spain as well as a background in finance and property also gives him the opportunity to write for Panorama.es, Marbella’s longest running real estate agent.