Property Investment Spain
As property investment in Spain in some regions has seen a decline in 2019 the Costa del Sol property boom continues. As new developments are released onto the market there is the usual rush to reserve prime apartments, those with the better views, those with the extra space, the corner apartments, the penthouses, etc.
Experienced investors are first in the queue to inspect the plans of new developments as they are released to reserve the best units for a minimal deposit and usually to resell them at large profits long before building commences.
Currently investing in property in Spain has shown superb dividends. In the past 5 years many investors, private and professional have made gains of between 30% and 100% on money invested within 12 months.
The fact that profits far outstrip interest rates has created a whole new market for investors from all over the world. If you are considering investment in Spanish property then the following methods may be of interest to you.
Investing at the Planning stage for maximum profit.
For serious investors who are not just looking for a home in the sun, the Costa del Sol has proved to be one of the most lucrative property investment markets in the world, particularly in the last 5 years. Many investors, private and professional, have made gains of between 30% -100% within 12 months on money invested.
Buying new property anywhere, before or during construction, and then reselling it as it nears completion has nearly always been a good investment. There are always buyers who will pay more for a finished or nearly finished property than they would for a property ‘off plan’ or a green field site with a completion date 1-3 years away. Nowhere is this truer than on the coasts.
To begin with you can start the process by reserving a property with an initial payment of 20-30% and then while construction continues the resale value will increase. By now most, if not all the new properties in the development will probably have been sold and at any time you can re-sell your option to buy at a profit.
A current example would be quality 2 bed 2 bath apartment in a good location available from 200,000€, to secure a contract on this development you would pay 27% – 54000€.
The delivery date on this would currently be 2021 so lets assume a conservative figure of 10% annual Capital increase on the value of the property, by 2021 the apartment would be worth 266,000€ an increase of 66000€ and up to this point you will only have paid 54000€ this would show a pre expenses profit over 3 years of 122%.
The great thing about this type of property investment is that it is safe. All the money that you pay initially is protected by a bank guarantee. This means that whilst you may not make the predicted profit figures you cannot lose the money that you have invested.
Investing In Rental Opportunities
Up to 8% annual return with 18.5% capital growth
This year the Costa del Sol will achieve the highest rental prices for holiday accommodation in the whole of Spain including the Balearics and the Canaries. In August the average monthly rental per sq metre will be as high as 81.95€, which means the owner of a 60 sq metre apartment could enjoy a rental of 4,917€. But on the coasts the rental opportunity is not a summer only phenomenon.
Unlike many holiday locations throughout the Mediterranean, The climate on the Costa Del Sol means that there is no “off season”.
Consequently, your rental property will rarely sit empty and should provide a substantial extra income as well as the option of using it for yourself and your family whenever you decide.
Please fill in our property enquiry form, detailing your interest and budget and we will respond within 48 hours with a selection of properties on the Costa del Sol suiting your requirements.