5 reasons to invest in Spanish Property

5 Reasons

to invest in Spain


5 reasons to invest in Spanish property

The Spanish market is flourishing, and that is evident in the amount of investors returning to the sunny coastal cities to once again invest in Spanish Property.

The Spanish government always knew investors would come back to Spain after its economic collapse back in 2006.
The reasons for coming back however, no one could predict!

The Golden Visa

The Golden Visa was introduced to the Spanish property market in 2013 and hundreds of investors have used this new legislation to gain access to Spanish Citizenship, in return for a minimum 500.000 investment in the property market. Since its introduction over 500 foreign investors from mainly China, Russia and the UAE have been granted residency to Spain, and investing into the Spanish economy over 700 million euro.
In recent months however we have seen an incredible influx of investors from South Africa and Iran who have successfully obtained the popular visa. The process of obtaining one however is not simple, and you can read more about it here.
Many investors initially only received citizenship for their spouse and children, but since its introduction, the Golden Visa has now been extended to even unmarried couples and dependent relatives.

Increase in prices

The Spanish banks are once again positive about the Spanish economy, in particular the property market. Even though owners should not expect the prices to rise as quick as it did during the Spanish property boom of 2001, but according to the BBVA, Spain’s second largest bank, sales are expected to grow in the very near future. Meanwhile, a report from Santander Bank explains that thanks to the increasing credit and price growth, 60% of Spanish provinces already have house prices starting to increase.


So house prices in Spain are still extremly low compared to 5 years ago, but we can see the prices slowly but gradually coming back up.

Now is the time like no other to invest in Spanish Property as interests are expected to stay low and the grow in demand will boost prices.

Selling in the sun!

One thing is for sure, and it will never go away, and that is people will always want a property in the sun. If there is one thing that Spain, can always guarantee, is plenty of sunshine! Especially in the South of Spain, specifically in Marbella, sales have increased by 28% in 2014 according to the Spanish National Statistic Institute. Since then, this number has only increased.
TEMPERATURE-AThe microclimate in Marbella gives the second homeowner a place where the sun shines practically 365 days a year, and investors understand this is where the best deals are to be made, as a great return for their money is almost a guarantee.
The demand for properties in Marbella is at its highest since the crisis, especially from overseas buyers. In the latest figures it shows that the majority of buyers are from the Scandinavian countries as well as the UK, where economies have stabilised dramatically in the past years.

Currencies are on your side!

The currency exchange is attracting more and more foreign visitors back to Spain, especially to invest in property. The euro is at an all time low compared to the British pound. where property in Spain costs 1 million euro, the Brits pay just 732228€ at the current exchange rate. All the more reason for foreign investors to invest in Spanish Property. The euro will gain its strength again in the next couple of months, and investors know this , and show their knowledge by investing largely from the UK.

The British pound is at a 7 year high against the euro so the same property that is now up for sale for 732,000 pounds was almost 100K more last year!

Even though it is mainly the Brits who win big in the currency value, the US Dollar would not do too bad either. They would pay more for a house in Spain as they would in their own country, but with the dollar at an all time low, when it comes to selling their property, they would stand to make a lot more money than the Brits when their own currency recovers.


The prices of properties in Spain have not just dropped dramatically, the profitability of property has increased substantially. They are almost double of what they are in most other European countries, and can give an investor a very interesting return on their investment in a matter of months.
Investors have caught on to the ever-growing tourism industry in Spain, and are cashing in on the millions of euros spent by foreigners each year in this expanding market.
Since Spain introduced the law for property owners to be registered, and paying taxes in Spain to rent out their property during the holiday seasons; the hotel industry has seen an influx of costumers booking stays in their resorts as many property owners did not want to register their property with the government. However, investors have taken in upon themselves in massive numbers to purchase large villas and mansions, converting them into boutique hotels, getting all the licenses and enjoying a handsome return each year cashing in on the tourism industry.

This trend seems to grow by the month, and does not look like it will dampen down any time soon. The investors have found a new niche, and are eager to explore all the interesting possibilities.

Sandra Young

Sandra is a reputable journalist originally from Hertfordshire (UK) now living in Sunny Spain. She is involved in the Spanish Economy and deals with many property investors on the Costa del Sol giving them advice on the best investment opportunities coming on the market.