Why invest in luxury Spanish real estate

Why Invest

In Spanish Luxury Real Estate

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Why invest in Luxury Spanish real estate

Spanish real estate is back on the market, and the property investment deals are the best they have been since the property market started to come back on its feet.

If there was ever a time to invest in Spanish Property, it is now, but not just any real estate. It is the high-end luxury market where the deals are to be had!

Investing in luxury Spanish real estate can give you extra income each month through rental income or development.

Imagine a luxury villa with the right permissions that can be converted to a lovely boutique hotel. As long as you are in the right location, plus have that amazing view and access to Golf courses, then you are in for a winner!

Investing in Southern Spain

Once such property we found online gives the perfect example of a development opportunity in southern Spain.

“The Secret Villa” as they call it is in fact exactly what it says on the box. A secret beautiful villa located in sunny Marbella, and with it’s microclimate you just can’t go wrong. A piece of luxury Spanish real estate that would suit any investor’s needs.

We gained exclusive access to the villa’s web site, and learned that this particular property is built on no less than 8 large plots. The garden is immense and has been looked after very carefully by its 2 wonderful owners.

The Villa itself is where “the secret” is revealed though. It has the possibility to be converted into a boutique hotel, apartment complex with no less than 12 luxury apartments, and the plots of land have the possibility to be converted to 8 luxury villas. So the possibilities with this property are endless, and therefore make it a wonderful opportunity for any investor to make a lot of money!

We were especially drawn in by this project because of it’s potential to be converted to a boutique hotel.

The villa is situated on a small hill, so has amazing views to the Mediterranean sea, it borders one of Marbella’s finest Golf Courses, and it has private gated road access.

This property could lend itself perfectly for those VIP guests who enjoy their privacy in a paparazzi free environment!

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Leisure industry income

The income for boutique hotels in Marbella is quite significant these days, especially if you ensure you cater for the upmarket clientele such as celebrities and CEO´s of large corporations.

The hotel industry in Spain alone welcomes over 36 million visitors each year. And these visitors spent over 35 million euros! Most of the tourism is concentrated in the South of Spain, with its microclimate and almost guaranteed 365 days of Sunshine.

Andalucía’s total expenditure by tourists in 2015 was up by 9% at nearly 6 million euros compared to Madrid at 3,6 million euros and 3 million for Valencia according to “Spanish news today. You can find their entire report here, which makes for an interesting read if you plan to invest in Spain.

The UK accounts for a whopping 23% of all foreign visitors to Spain at the moment, but the rest of the world is catching up fast and 2015 has seen a rise of 21% (over 900.000 visitors this year) from the USA, but the Far East such as south Korea, China and Japan have suddenly started to show interest in Spain with a staggering 20% rise in tourism from those countries.

The south of Spain needs to expand in the Hotel Industry to be able to accommodate all these extra tourists to their beaches, and that is why so many investors have now turned their attention to hotels and the leisure industry in Marbella, ensuring they have front row seats to this growing economic change.

The less obvious reason for this sudden interest from investors in the leisure industry, however, is the Economic crash 6 years ago.

Back then, investors lost their interest in the Spanish Economy, afraid they would end up like Greece, on it’s bottom. They started to move their money elsewhere, more secure like the UK or Germany. The problem was however, according to Patricio Palomar Mutillo, director of research and investment strategy at CBRE:

“investing in only the Nordic countries created a large “bubble” and now the investors are looking to diversify geographically again. Since there is not so much worry about Spain and leaving the Euro anymore, they are starting to look at Spain again, and luxury Spanish real Estate has now become one of the most interesting areas to invest in.”

Investors also see the profitability of Hotels to be much higher than offices or private rental.

According to Jordi Badia, whose Barcelona real estate firm Emin Capital just paid 150 million euros for Barcelona’s iconic Torre Agbar and plans to invest a further 50-60 million to refurbish it for use as a Grant Hotel, hotels are more profitable sources of income, which can’t be said for Offices,

This investment surge means that in the coming years, investors who are betting (wisely) on Spain’s returning and recovering economy, will translate those investments into large profits.

 

golf

Now the focus is on the luxury market in Spain. Investors are not just buying up any old hotel. You can clearly see a rise in investments for the high-end market with luxury locations being snapped up the minute they come on the market, this is why we were so interested in “The Secret Villa”. You can really see the owners wanted the villa to be taken on by a serious investment company who knows what they are doing with the property.

“We have had a lot of interest from private companies who are looking into converting our beautiful villa into a small boutique hotel, and that is exactly what they should do. It is a wonderful place to live in. We had actually bought it 10 years ago with the aim to convert it into a small luxury hotel. We never did, because the market crashed, but now it is back in recovery, we wish we had the energy to refurbish, but we are simply too old for this now.” Says C.B. the owner of the property who would like to stay anonymous.

“This plot would lend itself so well for a small luxury resort. You are away from everything and you don’t hear anyone during the day. The gardens are private, and walking around it takes us about 30 minutes every day. It truly is a magical place.”

Indeed it is, with a Golf Course on its doorstep, and all the privacy anyone could wish for, this property will not be on the market for long, and any investor in his right mind would snap this up in a minute!

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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.