For overseas property investors looking to buy in 2020 Spain could be the perfect destination. The Spanish property market suffered badly in the Global financial crisis in 2008, but things are now certainly on the up.
So what makes Spain a good choice in 2020? Here are five reasons why.
The Spanish property market is gathering momentum. Residential property prices rose an average of 6.7 per cent across Spain over 2018, marking the fifth consecutive year of increases in property values.
More importantly, the rise was the largest increase in a year since 2007. With prices returning to the kind of highs seen before the financial crisis, value looks set to grow further. Investing in 2020 should see you with a property that’s value will continue to grow.
Spanish tourism grew to record numbers in 2018 – with 82.6 million visitors coming to the country. This is expected to grow still further this year and in 2020.
Many overseas property investors look to buy for the holiday market, and properties can now be listed on sites such as Airbnb and achieve a substantial return on investment.
Whether you want a holiday home for yourself, or simply to rent out, returns are becoming easier to achieve with tourism booming.
Interest rates are currently running at historically low levels, and this is likely to continue into 2020. This means it has never been cheaper to borrow money. Your mortgage is effective cheaper than ever before.
This is compounded by the fact that there are limited investment opportunities elsewhere; savings are weak due to the aforementioned low interest rates. Investing in property has historically been one of the safest and soundest strategies for return on investment.
With the Central Bank of Spain forecasting a 10.5 per cent return on residential properties 2020 could be the perfect time to invest.
One of the issues hanging over British investors buying property in Spain is the issue of Brexit. As this fraught political issue continues to remain unresolved, a great deal of uncertainty has been created – and of course, uncertainty is never a good thing for those interested in investing their money.
It may be the case that by 2020, Brexit will have been resolved. If this does happen then markets should begin to stabilise, and there will be far less volatility, for example in currencies. Understanding the costs can make it easier for investors to feel confident.
Options for British Investors
Whether you are a new or experienced overseas property investor, Spain can be a perfect choice.
There is a large ex-pat community of Brits living in Spain along with a range of great websites dedicated to providing information for those looking to buy, whether that’s for a holiday home or relocating their family.
The choice of locations is excellent. With the Costa del Sol and famous spots such as Marbella and Benidorm offering sun, sea, and Sangria for those seeking the holiday vibe, there are also vibrant cities such as Barcelona, Valencia, and the capital Madrid providing the metropolitan buzz.
Other lesser known options such as Zaragoza and Seville are now up and coming destinations to invest in 2020.
Wherever you choose to invest in Spain, 2020 could be the year to do it.