Spain’s Investment Hotspots
“According to the Office of National Statistics, over £6 billion has been invested in Spanish property, accounting for 27% of British foreign investments”.
An article from Kyero.com, looks at Britain’s love affair with Spain and some of the best places to invest your hard earned cash…
Spain, the UK’s favourite holiday location for years, has literally become a home away from home for the Brits. Since the mid 1990’s, Spain has been the number one choice with UK holidaymakers and its popularity keeps growing. In 2005, Spain saw a staggering 13,864,000 UK tourists.
Investing in Spain
They’re not just coming for holidays anymore. Every year, more UK families and young couples are choosing to leave the endless grey skies and set up home in sunny Spain. Spain is also still a key player in the buy-to-let and investment property markets, despite rising competition from emerging markets in Eastern Europe - the likes of Bulgaria, Romania and Croatia.
Being a mature market does have its advantages. Spain offers low interest rates and sustained long-term growth - something which these new emerging markets can’t guarantee. Spain also has an infinitely better climate than Eastern Europe, the Canary Islands in particular, which is a big factor when it comes to year round rental yields.
It’s debatable also, whether these emerging markets will eventually establish the same UK expat communities that exist more established markets like Spain and France.
Where in Spain?
According to the Kyero, Malaga, Granada and Alicante are the most popular regions in terms of Internet searches but Almeria and Valencia is where to look if you want a property at a price well below the national average with strong capital appreciation and rental potential. The Canary Islands, with year round sunshine, are probably the best buy-to-let location in the country.
Almeria
Located in southeastern Spain, this beautiful province, famous for its desert-like landscape, endless blue skies and intense light has been the setting for many spaghetti westerns. It’s also one of the best scuba-diving locations in Spain and just a short drive from the Sierra Nevada ski resorts.
It’s a land of contrasts with unspoilt coastal fishing villages and picturesque towns like Mojacar - one of eastern Spain’s best-kept secrets.
In recent years however, the region has become more popular. There are now numerous new hotel resorts and golf developments. Almeria’s airport is now served directly by a number of budget carriers, including Easyjet, Ryanair, Monarch and Flybe.
Although, development is increasing all the time, Almeria is still relatively untouched compared to neighbouring Malaga province. Property is cheaper now but will no doubt go up as development continues.
Valencia
Valencia on the eastern coast, directly across from Madrid also offers excellent value compared to the more popular tourist traps. Between 2005 and 2006, the region saw a steady rise in property values.
In Castellon (Northern Valencia) there was an increase of “35% from €167,000 in May 2005 to €225,000“.
The Costa Azahar is another area well worth looking at. This idyllic stretch of coastline boasts over 112 kilometres of unspoilt Mediterranean shores and a dazzling 320 days of sunshine a year. Properties here were 8% cheaper than the national average in 2006.
The capital (Valencia), Spain’s third largest city is vibrant, cosmopolitan and offers everything you’d expect from a major urban centre.
The 1992 Olympic games held in nearby Barcelona had a very positive impact on the city’s property market. The 2007 America’s Cup held in Valencia is likely to do the same.
Millions of euros have already been pumped into the infrastructure. There’s now a new high-speed rail link from Madrid and Valencia’s main airport has been extended. There are regular low cost flights from the UK.
Buy-to-let Hotspots - Gran Canaria
Gran Canaria, one of the last European paradise isles offers one of the most spectacular natural landscapes in Spain.
It’s a miniature continent with lush green forests, exotic wildlife and flowers, massive sand dunes, spectacular beaches, formidable snow-capped mountain peaks and huge volcanic craters.
The Canary Islands are the only genuine winter sun destination in Spain. Temperatures rarely drop below 18C or rise above 25C and it’s nearly always sunny. It’s perpetual springtime of these fortunate isles.
In Spain, a two-bedroom property can be rented out for approximately 100 euros per night during the peak seasons of July and August. On Gran Canaria, because of the climate, it’s peak season from January to January - all year long. Buy-to-let investors can make substantial earnings. Click the following link for more information on Gran Canaria Real Estate.