by Carole Exton in Investment
The past two years has seen Spain become a very interesting country in the eyes of international investors after a prolonged period of caution caused by the economic and financial crisis in the country during the recession years.
There is still a degree of caution with first time investors and pre-recession investors who may have suffered large financial losses, however Spain is seemingly gaining momentum rapidly and the focus of investment is quite firmly fixed on Spain.
Whilst it is true that there are still many untouched developments from the crash, the amount of new developments in popular touristic and all year round areas such as Costa Blanca, Costa Del Sol and Murcia has been staggering; even more so when new build developments are more often than not selling out completely before a brick has been laid.
Spain has changed massively over the past 10 years and the demographic has been a major factor in this.
During the late nineties and early 2000´s boom new build developments and cranes dominated the skyline of virtually every coastal, rural and city centre throughout Spain – the target market was mainly British expats looking for a new life or a holiday home in the sun, whilst there are many British buyers still choosing Spain as there preferred property option the biggest buyers of new builds in the modern day are not British.
The largest bulk of buyers of new builds has been from Scandinavian regions such as Sweden and Norway as well as a massive increase in buyers from Belgium, Germany, Holland, France, Russia and clients from around the globe.
It is fair to say that with a changing demographic that other property sectors aside from new builds are also seeing new trends develop – resales and commercial markets are also benefiting hugely from international buyers.
Businesses are also benefiting from huge spikes in tourism during summer months which has also seen many new international restaurants, bars, shops and the development of retail parks offering increased employment and local tourism revenues.
For investors it is all positive news with options available to fit any requirement;
- Building and Development – There is still prime building land in highly sought areas available
- Refurbishment and Quick Flip – Throughout Spain and in some prime coastal areas there are developments like new just requiring a refurbish to modern standards that can be bought below market value (BMV) and sold quickly for a good profit.
- Commercial – A hugely increasing market for foreign investors with many interesting projects to consider in city centres, on the coast and inland
- HMO and Buy to Let – A great opportunity for ongoing revenues in key locations that pull in huge short and long term rental demand due to facilities and amenities in the area
In summary, the ever changing demographic of Spain is going hand in hand with an increase in foreign investment and has opened up opportunities cross sector for anyone looking to invest in Spain and generate excellent yields from their investment in the short, mid and long term.