Buy-to-Rent… 10 Reasons to Invest in Spanish Real Estate
BIP Investment Properties is the latest high-profile industry expert urging people to consider entrusting their money to the burgeoning Spanish real estate market. The Barcelona-based company has just published a report highlighting the increasing “high-profit” opportunities available, with some projects reported to offer annual investment guarantees of 23 per cent.
To reinforce its arguments, BIP lists 10 key reasons for investing in Spanish property.
- Real estate assets purchased just a few years ago have experienced annual increases in value of 20 to 30 per cent.
- Average profitability of 3.6 per cent, as home prices have increased gradually since the recession first hit Spain in 2006, and as the real estate market becomes increasingly attractive and profitable.
- An estimated total of 22.5 million tourists who prefer to stay in “tourist-homes” rather than other accommodation such as hotels, as Spain consolidates its status as one of the most popular holiday destinations in the world.
- A 16.4 per cent increase in the number of real estate transactions.
- Profitability of 9.7 per cent for property rentals.
- Return on Investment (ROI) in Spain among the highest in Europe. BIP notes that few countries can match Spain’s rental ROI, growing tourist demand and convenient purchase facilities.
- Spain has the 13th strongest economy in the world, and is 11th in the ranking of countries’ Foreign Direct Investment (FDI), thus favouring investment in real estate assets.
- Spain has a top-quality, pacesetting infrastructure network, which provides a favourable fabric for the development of commerce and tourism, both within and outside the country’s borders.
- Stability in the long term, and ongoing cash flow fluidity.
- A “paradise” for foreigners, offering a high quality of life and moderate cost of living.
In short, BIP argues that a study of all those factors demonstrates that real estate investment in Spain is “profitable, secure and stable, and with forecasts of growth over the next few years”.
Meanwhile, official figures have been released highlighting the flourishing “tourist-home” market on the Costa del Sol, especially in Marbella and Mijas, and its growth against traditional hotel accommodation.
According to a report in Diario Sur, quoting statistics from the Registro de Turismo, Marbella leads the way in Málaga province with 16,181 beds, compared with 12,276 in the popular resort’s hotels.
Mijas has barely 1,000 hotel rooms but a boom among homeowners has boosted the number of tourist-home beds to 10,018.
In total, the regional ministry of tourism reports that there are 76,614 beds in tourist-homes in Málaga province, not far short of the hotel total at 79,029. Just four months ago, the number of beds available in homes was 68 per cent of those offered by hotels in Málaga.
The main category of people renting apartments, townhouses or villas is families, followed by couples and groups of friends.
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One highly coveted residential area in Marbella is Nueva Andalucía, where this stunning villa is just a five-minute drive from Puerto Banús and priced at an excellent €1,995,000.
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