It is difficult to apply traditional investment trends to homes that are built for residential tourism and lifestyle use. The use of traditional economic indicators such as GDP, demographics, housing stocks, etc. cannot always be applied successfully.
Historic statistics prove that with touristic coastal properties in Spain, the range between the “troughs” and “the peaks” during recessions is far higher than in primary residencies and can create a better margin for the investor.
This factor alone creates the opportunity where higher returns can be achieved and this trend is already being illustrated in the current market of today.
Q How do I choose a company that I can trust to look after my best interests?
Q Should I appoint a lawyer to oversee and co-ordinate my purchase?
Q Is it best to purchase newly built or pre-owned property?
Q How easy is it to get a mortgage on a property in southern Spain?
The Spanish real estate market saw average property price rises of over 200% between 1996 and 2006 (RICS European Housing Review 2009). Between 2001 and 2006 the annual rate of increase was a lively 15% (TINSA Index March 2009). A prolonged period of low interest rates, rising inflation, traditionally high levels of Spanish home ownership, large-scale speculative property investment, cheap credit, irresponsible lending practices and a disproportionally large construction industry (13% of GDP) have led to a housing bubble comparable only within Europe to the UK and Ireland.