In the region it has been reached up to a 30% increase revaluation in prices in a single year
In recent months the glamour, charm and enviable subtropical climate of the Costa del Sol seem to have attracted locals and foreigners hundreds of investors who disbursed capital to build and accelerate market selling houses in this sector, whose investments they have risen by up to 30%. Profitability, financing banks and imposing lifestyle seem to be the main reasons, says Ignacio Acosta.
Market behavior of the high-end real estate is an interesting signal to anticipate price increases. Buyers who have sufficient financial means to invest in luxury stone, also have relatively accurate analysis means. The fact that the luxury villas sell better for 12 months is a good sign. Some anticipate that the luxury real estate will rise again and lead the rest of the market by systemic effect.
It also records already rising property prices on some popular destinations such as Marbella and Ibiza. However, the segment of the residential family still shows a discount of 40% from the original price of 2008. From this observation it can be inferred that the rise in short-term prices will start first on the high end villas type of second home, well located. Market logic would advise families to invest in second homes, finding tenants safe and wait a few years to realize a nice gain.
But it is to be patient, because today the unemployment rate in Spain remains above 25%. The expenses are under control, but the debt is still a major problem. The economic recovery will depend on European growth, which will take some time. The real estate crisis in Spain may be about to end, but the investment must always be on a long-term perspective through.
1 . Fall in prices
Although 2012 was an extremely hard for the Spanish economy year, our country reached fourth place in the ranking of the most attractive in Europe for foreign investment, it was learned from a report by the Ernst & Young audit released mid this week. And although in the same non-negative elements are disdained, as may be the shrinking market for domestic consumption also increased the competitiveness of the Spanish economy finally assumed that a total of 274 projects be initiated in 2012 was highlighted, 0.4% more than in 2011. Just ahead, UK, Germany and France. Wage moderation, declining prices and restoring confidence are some of the reasons behind the decision to invest in our country.
¿Have floors touched bottom?
The housing bubble that spurred a whole country exploded in 2008 and prices have since plummeted in a steady decline that is not yet known whether it has bottomed out, with a “Bad Bank” which brings together the most toxic assets at bargain prices.
According to an “investment guide” of BNP Paribas, there are several reasons to invest in the real estate market in our country successfully, including the price of real estate assets located at its lowest level in recent years own means a “unique opportunity” and only for the future return on investment as economic recovery causes a rise in prices.
According to experts and investors, is the Costa del Sol the most ideal area to invest, because its profitability stands out above the rest of Spain. This area seems to stop growing, dozens of new buildings, houses, villas, hotels, restaurants and clubs are now being built, whose investments have achieved a revaluation of up to 30% in a year.
Not inconsiderable numbers and a coast that looks more consolidated and stronger than ever are the main reasons why Spanish and foreign are turning their gaze to Costa del Sol as a great place to post your updated property sales. Remember not to rush when you buy or sell, evaluate all available offers, price and quality.
In a report on the Spanish stone, the economic research institute Xerfi concludes that, from € 2,100 / m² 2008-1470 € / m² in 2013, the average price of real estate lost 30%. But this is an average, in some places the discount reached 50%, other preserved areas have not seen a drop of 10% to 20%. Today banks hold a stock of 15,000 unsold apartments, from the apartment to the house, spread throughout the territory. It is interesting that this stock still comprised 40% of nine at the end of Q2 2014. It is therefore of completed programs, but have not found buyers. This indicator shows that the volume of transactions is not sufficiently increased again to talk of market recovery. However, certain signs and especially the passion for the luxury market, showing that prices could stabilize, before recover. Today the average price per square meter of Barcelona is around € 2,500, while it is € 8,500 in Paris. Quality apartments in the city center can reach € 3,000 / m².
2. Residences for foreigners
Buying property of more than 500,000 euros by foreigners will entitle them to a residence permit for two years, but not working. This clause, one of the most striking of the new law on entrepreneurs, is designed to “avoid embarrassment” to these foreign nationals have to leave the country every ninety days to renew their visas,
It is high-income investors who nonetheless must pass all the checks Interior Ministry to check aspects such as the absence of a criminal record.
3. Heritage Strategy: Diversify!
Heritage and tax situations of each home depends on many parameters such as the composition of the family, the marital status, employment status, assets and investments held. Every investment must fit into a global asset approach and meet á goals.
The idea is not to say that buy a property in Costa del Sol is the ideal financial product but to say that this is an attractive investment, with a diversification and an alternative to conventional substrate type life insurance.
It is suitable for investors:
- Seeking annuities
- Seeking a future additional income for retirement
- Seeking for arbitrate a traditional investment in favor of a more profitable investment.
- Seeking to diversify their real estate
- Prices have fallen by 50% since 2007 but there are still 60 million tourists visit Spain every year.
- Seasonal rental market is active and lets out annual returns of between 4.5 and 6% see more with an expected capital gain important.
4. Privileged location
Another of the great attractions of Spain is in a privileged position to operate with third parties, making it an ideal choice for conducting international business platform: it belongs to the European Union, represents the gateway from North African and with South America, due to our close historical and economic ties, according to our real estate specialist.
You enjoy also a climate quite exceptional with over 300 days of sunshine a year just 2 hours by plane from the main cities of Europe. There is indeed a microclimate south of Torrevieja that guarantees sunshine, warmth and light without comparison with the rest of Europe.
The climate is hot in summer; temperatures can get close to 35 ° C. The winter temperatures are relatively mild day (~ 15 ° C). The annual average temperature is around 18 ° C. Rainfall is very rare (less than 35 days per year on average) but intensive as they occur. The sun rises to around 330 days per year. The coast has a subtropical Mediterranean climate.
5. Luxury Lifestyle
The glamour and style hold hands to show that the Costa del Sol is the star of the charm of Spain. There coexist socialites, stars and celebrities, the European aristocracy and the Saudi royals.
The luxurious buildings overlooking the sea, the charm of the towns of Malaga and Ronda fantasy conspire to make you feel you too as part of royalty.
6. Different sources of entertainment
Spain, countries of the Iberian Peninsula, whose coasts give both the Mediterranean Sea and the Atlantic Ocean, offers an incredible number of faces depending on the region where it is located.
Beaches, mountains, plains, coasts, you have the choice! Many sports and activities are available: family or for hard-core athletes, again, everyone will find his account. But still the same warm welcome to all parts of Spain and a strong sense of celebration, where you go.
Spain is really a dreamland. Climate clemency and the omnipresence of the sun make it a destination relaxation ‘of choice. But Spain is much more than that!
First, the country has a culture and traditions deeply rooted in the heart of its inhabitants. Here one thinks of the bullfight or flamenco. But the Spanish culture goes well beyond these postcard clichés. Moreover, we should say the Spanish cultures. In fact, Spain is four official languages (Castilian, Catalan, Galician and Basque), 17 autonomous communities and regional particularities in shambles. The ‘celtitude Galician opposes the Arab heritage of Andalusia, for example.
However, a trait meets all Spaniards: the spirit of the fiesta. Every night is an opportunity for a drink with friends or a turn on the dance floor. Various parties, but always exuberant, take place throughout the year. Warmth compete strongly the summer heat! In addition, the long history of Spain and its varied influences have left him a simply outstanding heritage. Cities such as Madrid, Barcelona, Seville and Granada are architectural wonders. Iberia is also a land of artists. The many museums you will discover masters like Velázquez, El Greco or, closer to us, Picasso or Miró.
If you prefer the outdoors, be aware that Spain is a multitude of landscapes, each more surprising than others. Mountains, green fields, barren hills, volcanic plateaus .. there is something for everyone.
Spain also delivers a refined cuisine, which, admit it, does not spoil anything! Traditional tapas are essential but Spanish cuisine is characterized by a wide variety. There also regional differences are ubiquitous. Spain is the explosive mix of sun, art and fiesta. The 50 million annual tourists prove how this country is fascinating.
Andalusia differs from the rest of Spain by the quantitative and qualitative importance of relics from the time of Al-Andalus. Many castles and fortresses (Baños de la Encina Castle fortress of Alcalá de Guadaíra, alcazabas of Malaga and Almeria), the palace (Alhambra de Granada, Jerez de la Frontera Alcázar, archaeological site of Madinat al-Zahra), mosques (Cordoba Mosque, Mosque of Almonaster la Real, Giralda in Seville), baths (Jaén, Granada, Cordoba) to be reached – more or less intact or reworked – until today due to the prolonged presence of Muslims in the region, which was not conquered between 711 and 1492. Reside on the Costa del sol is put á porter car, between 1 and 3 pm cities car like Cordoba, Seville, Granada, Ronda and other goods á discover gems.
Traditions: Flamenco, Corrida, Feria, horse, gastronomy
Andalusia is the birthplace of flamenco. This is also the region of origin of the purebred Spanish horse, and one of the landmarks of bullfighting. Bullring Real Maestranza, Bullring in Seville and the Cordoba Caliphs are two first class seats. Moreover, much of the toros bravos farms is located in the provinces of Cadiz, Huelva and Seville.
Andalusia is the scene of a large number of festivals throughout the year. The most important religious holidays are Easter week (particularly lavish in Seville and Malaga) and the Pilgrimage of El Rocío, at Pentecost, which brings together hundreds of thousands of Andalusian.
The fairs are the most popular secular celebrations; every town and village organizes, often in the festivities related to the patron saint of the town. The most famous are the Feria de Abril Sevilla, Feria de Nuestra Señora de la Salud de Cordoba and the Feria del Caballo in Jerez de la Frontera. Cadiz Carnival is also very popular.
7. Best place to play Golf inEurope
A total of 78 courses at your disposal The Costa del Sol is also known as Costa del Golf. It has the highest concentration of golf courses in Europe, which are distributed as follows:
On the coast: 61
21 in the city of Marbella, Mijas 11, 10 in Estepona, 6 in Benahavis, Málaga 3, 2 in Casares, Rincon de la Victoria and Benalmádena and 1 in Velez-Malaga, Fuengirola, Nerja, Estepona.
Divided between Alhaurin el Grande, Alhaurin de la Torre and Antequera.
Written by: CAPD
Contribution to reader: Know some of the main reasons to invest in South Andalusia according to the current real estate market in the country