Home   |  Spain Real Estate  |  Spain Real Estate Agents   |   Spain Real Estate For Sale   |   Property in Spain  |   Spanish Property For Sale

Spain Real Estate

Spanish real estate feels good and the prices don't show any sign of tiredness, almost doubling in the last 6-7 years. With prices per sq.meter shortening the distance to the average level of the richer European Union countries, many in Spain ask if this boom is about to end shortly. For now and in mid-term most factors, such as mild climate, demographic situation, low interest rates and growing economic and investor immigration, all play in favor of additional market appreciation of the properties. Despite the new terrorist threats there are no reasons to believe that the market is on brink of sudden negative correction.

For years Spain has become focus for many European senior citizens looking for cheaper place to live their golden age, European analogue to Florida for the United States. During the years the prices in the country has grown substantially, gradually shortening the distance to the average price levels in the richer European countries such as France and Germany. This spring the average residence in the country costs around EUR 1,700/sq.meter, which is almost twice the price in 1997--98. So far this trend didn't influence negatively the market, which welcomed almost 100,000 new foreign buyers, predominantly from other EU countries, in any of the last 2 years. Almost half of them came from the British Islands, another third from Germany. French retirees also showed interest to buy in their southwestern neighbor.

Another reason, keeping red hot the Spanish real estate market, is the demographic situation in the country with the average age constantly going up. In a situation when the bank saving isn't rewarding and the stock exchange speculations are risky, the only relatively safe and worthwhile investment is in the real estate. With the two main European economies (Germany and France) remaining near the point of freezing, it isn't likely that the interest rates will go up soon, thus making the real estate investment look relatively the best option in mid-term. In their lifetime most Spaniards haven't seen interest rates so low (4% now instead of 16% some 20 years ago) and they want to profit from this fact. The strong Spanish mentality of having own property, even a small one, also contributes to the rise of demand.

Growing international immigration, both economic and investors', is also playing an important role on the market. Only no more than 10% of the residences are offered to lease. The young Spaniards can wait for a certain period, usually extending well into their 30's in order to have their own residence living till then with their parents. The newly coming residents have no such options given the limited rental offerings. They enter the market of old or newly built properties for sale and contribute to the general market boom.