In March of this year, A Place in the Sun named Spain as the top place to buy. Spain has finally been making gains in the economy since the crash of 2008, and also reduced unemployment. In recent months however, we have seen the terrorist attack in Barcelona and then the ongoing independence issue, forcing Spanish government revise their economic forecast.
So is Spain still a great place to invest? With independence uncertainty and many companies moving their main offices from Barcelona to other provinces in Spain, it may give more opportunity for other provinces to make advances.
The Spanish property market has been growing steadily since 2014. This year, according to the Spanish Property Report, the five major growth areas in sales have been in Tarragona (24%), Granada (23%), Girona (22%), Asturias (22%) and Valencia (20%). Figures from the Spanish National Institute of Statistics (August 2017).
With uncertainty surrounding the current political situation in Catalonia, other regions and cities like Valencia and Alicante may benefit from the fallout. With new establishments and renovations, specifically of the El Cabanyal district in Valencia with its colourful quaint buildings, the city could be a good investment opportunity if you get in there quick. Average costs on the Costa Blanca, according to Spanish Property Insight, are around 2,100€ per square metre. Another place to watch in this region is the coastal town of Javea, sitting between Valencia and Alicante.
Almeria province has seen more than a quarter increase in sales compared to last year, with Mojacar hillside village and beach being a favourite destination. Almeria may not be as famous as some of the other regions, but it has been the setting of various movies including Lawrence of Arabia and Indiana Jones . It’s also home to the Cabo de Gata-Níjar Nature Reserve, castles and traditional Spanish villages.
In the Balearics, Scandinavians are most likely to buy, whereas the British are seemingly keeping hold of their sterling, due to Brexit concerns. The protection of the islands’ natural beauty is being preserved by restricting the number of properties, which is keeping property prices stable.
The province of Granada features traditional Andalusian towns, the Sierra Nevada ski resort and the Alhambra moorish palace, however property values seem to be falling, due to a large number of illegal constructions on the market. However, increased regulation and checking of properties could turn this down turn around.
Well know expat locations in the Costa del Sol, such as Mijas and Fuengirola have seen prices increase again to 1,990€ per square metre, according to Spanish Property Report of October 2017.
As the Brexit deadline beckons and the Spanish take rule over Catalonia, we may see a decline in British visitors and uncertainty over the political outcome in the future. However, Spain’s beaches, blue skies and charming architecture will always remain the same, and therefore a good location to invest.