Buying property in Spain
8 September 2022
Director of Alanda Properties
September marks the end of the summer and the start of autumn. Autumn is the high season for property purchases. Traditionally the best months for property sales are September, October, and November.
As we have highlighted in multiple articles over the last two years, there is a property boom going on in Spain. Property prices have strongly rebounded post-pandemic (since 2021).
We are witnessing an annual capital appreciation of 8.5% for resale property across the board and over 10% for new builds (off-plan). In coastal areas, and large Spanish cities, it’s actually a two-digit property rise! Bottom line, property prices have risen in Spain reaching all-new highs!
In addition to the above, rental yields are also growing by two digits year-on-year. Long term lets offer a net yield of 4.5% per annum, whereas short-term rentals (holiday homes) are far more profitable, delivering a two-digit return.
Pro-tip: The combination of both capital appreciation and soaring rental yields translate into a combined yield of over 10% per annum! No other safe investment offers such high returns.
In some regions of Spain, regional authorities have (dramatically) lowered the taxes associated to buying property in a bid to foster an economic recovery post-pandemic. For example, Andalusia slashed by 20% its tax on off plan and from 13% to 30% in resales (contingent on the asking price; the higher the price, the more tax you save). Indeed, it’s a great moment to seize the opportunity and save dozens of thousands in tax money!
You can find here a detailed (free) guide to buy property in Spain. Simply follow the link supplied: Guide to buy property in Spain
Spanish real estate is poised for combined two-digit gains over the next year, interest rate fluctuations notwithstanding, easily trumping alternative investments (bonds, commodities, cryptocurrencies, gold, etc) and paltry fixed returns in a context of historic ultra-low interest rates.
Contact me at Alanda Properties if you are buying or selling property on the Costa del Sol and Sotogrande. You will be surprised to learn the deals this new market has to offer on prime locations.
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