Buyers flock back to luxury property market
Following on from a strong recovery, investors are now turning their attention back to Spain for high-end buy to let property.
It appears that wealthy buyers have been monitoring the market closely until the global economy and property market began to show signs of recovery. Now, the luxury market has seen a sharp increase in the amount of interest from foreign buyers, particularly from the Middle East, the UK and northern Europe. Areas of Spain that have seen the strongest recovery, and therefore have attracted more interest from investors, are along the “Golden Mile” in Marbella and Sierra Blanca – with some of the more luxurious properties attracting an average price tag of €10 million.
Thanks to the Golden Visa scheme, the value of transactions has increased with many buyers being granted automatic access to live in the country when purchasing a property worth over the €500,000 threshold required. As an additional incentive, completion times have now fallen from an average of 10 – 12 months to 3 - 6 months. This allows investors to start generating a return on their investment much sooner.
With prices in the luxury property market having fallen by an average of 31% during the crisis, we are now starting to see recovery. The Ministry of Public Works’ data has shown that prime residential transactions has increased 25% in the last year – prices many not quite be back to their peak, but the significant improvement results in buyers obtaining great deals on property which will see them benefit from significant capital growth over the next several years.
Managing director of Sequre International, Graham Davidson, comments:
“Certain areas of Spain such as Marbella and Puerto Banús are renowned for properties with a higher price tag – these luxury properties really do attract the elite and with both areas being such prominent hotspots, it makes sense for wealthy investors to look at higher end properties as they will still see great returns. Plus, prices are still low for the quality of property they are purchasing within that location.”
“It’s a great market for buyers at the moment – for anyone looking for a luxury second home or to relocate to one of these desirable properties, now is the perfect time before house prices start to rise even further.”
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