2016 was a good year for Spain’s property market, with reports indicating there was a 15% increase in property transactions in 2016 over those of 2015. Real estate forecasts have predicted a continued healthy growth over the year 2017. After the 2008 financial crisis drove property prices to rock bottom in Spain, there was nowhere to go but up. The Spanish property market crash officially ended mid-2014, after which the market has experienced 10 consecutive quarters of steady growth. At this point for Spain, there’s no looking back.
International interest in Spanish property remains high for both those who are relocating as well as those looking for holiday homes. Indeed, one in five homes is purchased by a foreigner with British nationals ranking as the top buyers in Spain. While there was some concern that the Brexit vote and the decreasing value of the pound would lessen interest from the UK, this is not the case as Spanish property is still in high demand from UK buyers. In addition, as UK property prices continue to increase, many British retirees are starting to sell and move to Spain where their saved earnings can purchase better properties.
Aside from the Brits, non-European buyers are also to thank for the growing Spanish property market. Spain’s Golden Visa Program was introduced in 2013 in an effort to help boost the country’s waning economy. In return for an investment in Spain, foreign nationals obtain a temporary resident visa for one year, renewable for two-year periods thereafter. This temporary visa can lead to permanent residency after five years, and citizenship after ten. Investors through this program have helped carry Spain out of its economic slump post-financial crisis.
While there are many investment options available through Spain’s Golden Visa Program, the property investment option is always the most preferred by investors around the world. First, the minimum investment price is only EUR 500,000 compared to the EUR 1 million plus requirement of other available options. Second, with the Spanish property market forecasts continuing to look up, savvy investors with an appetite for risk are buying properties at low prices now to be able to make sizeable capital gains on future resale.
The minimum property investment must be EUR 500,000 excluding tax and other conditions in order to qualify. Mortgages (financing) may be obtained on properties purchased above the required value. In other words, if an investor has his or her eyes set on an EUR 750,000 property, a mortgage can be obtained on the excess amount of EUR 250,000. The minimum EUR 500,000 value can be spread out over multiple properties if desired.
An additional reference in “El Pais” newspaper can be found here.
Contact us and we will guide you and assist you through the property purchasing and Golden Visa application process… success warranted!