Brexit has been on everyone’s mind ever since the vote in the U.K. to remove itself from the European Union took place. But what does this mean for those who have property and other investments on the continent?
After some torrid years which saw Spanish property prices plummet the country seems to to be on the path to recovery. In the last year property prices seemed to have clawed back some of their losses and investors could begin to breath a sigh of relief. This newfound confidence seems to have translated itself into an appetite for Spanish property.
This is especially true for those who want to view their investment in Spanish property as long term – a buy to let opportunity.
However, there are still some questions that need answers.
Firstly – is this recovery just a flash in the pan?
Spain took a long time to recover from the global financial crisis. However with year on year property prices increasing by around 5% it outstrips its European neighbours. But even this modest increase offers opportunity. Those prices are still far below historical highs. This darling of the British property investment community – including retirees may still represent a great opportunity.
Is demand still high across all regions?
Leading agency Sequre says that Spain remains a diversified market. It makes up a large proportion of its overseas market portfolio which grew by 118% in 2016.This gives them confidence that Spain is surging to the front of favoured places for Europeans, including British nationals to invest.
According to the organisation there are evergreen regions such as the Costa del Sol and and Costa Blanca that remain tourist hotspots and the but to let market remains strong – an investment opportunity that should not be overlooked.
Is a boom on the Horizon?
After being down in the doldrums for many years Spanish construction of new accommodation seems to be picking up. Many Euros, in fact millions are being thrown at the Spanish economy in order to stimulate the economy – and much of this is trickling into the construction sector.
Visit the Costa del Sol, Costa Calida or Costa Blanca and one thing becomes apparent – construction is booming. The sheer number of cranes and construction equipment is simply staggering. It signals a resurgence of Spain as a property investment destination.
So is Spain the Best Overseas Investment?
Buy to let is always a matter of doing research and exercising due diligence before making a decision. In property that is especially important. But the old saying that location is key still remains true. looking further afield in Spain may deliver exceptional results in the medium to long term.
But for those who want to go with the tried and tested then those cities near to Blue Flag beaches are a great bet for exceptional return on investment. Places such as Marbella and Alicante have lways delivered due to their beach status and a great climate.
Are There Other Choices?
For those who are looking for something a bit different and who have an appetite for big returns while minimising risk there are areas such as Mijas located in the Costa del Sol. Fairly low buy in – but rental yields that continue to grow year on year. For the savvy investor this is an area that might be worth looking at.