Real-estate prices dropped continuously between 2008 and 2016, about 30 to 60 percent if compared to the results obtained in 2007. After a flat period, the market recovered in 2017 thanks to increasing employment rates and a thriving economy which increased the total number of successful deals. The economic revival has led to higher rental demand so it is the perfect moment to buy a property and rent it for three or five years until the time has come to sell it and benefit from outstanding capital gains. Moreover, foreign investors may benefit from mortgage loans when purchasing bank-owned properties.
MARKETS ARE ONE STEP AHEAD OF THE ECONOMIC CYCLE
Investors are looking towards Spain nowadays given the existing real-estate cycle. 2013 turned out as the year when the first real-estate market operations were registered: business shares and real-estate as well as financial assets skyrocketed up to $24 million. Bill Gates, Amancio Ortega and leading investment and capital funds, such as Blackstone, HIG Capital, Cerberus, AXA, Goldman Sachs, Barde, Anchorage… All of them appear among the aforesaid investors and it is the proof that markets trust that the cycle is changing in Spain. Following these investors, other individuals (mainly from the UK, Scandinavia, Russia, China and Latin America) are starting to purchase residential and commercial properties across the country, as well as accommodation properties.
THE SECOND HIGHEST INCOME FROM TOURISM WORLDWIDE
Climate, beaches, gastronomy, history, cultural and entertainment options, intangible heritage, way of life, competitive and high-quality accommodation – all of these make Spain one of the main tourist destinations for people around the world. Throughout 2016 Spain welcomed more than 75 million foreign tourists, becoming the third most visited country worldwide. In terms of income from foreign tourism, Spain achieved the second highest place on a global scale after receiving €62.6 trillion in 2016, according to data supplied by the World Tourism Organization (WTO). Spain’s main tourist destinations are Andalusia, Madrid, the Mediterranean coast, the Balearic Islands and the Canaries.
FAVORABLE LEGAL FRAME FOR FOREIGN INVESTMENT
Spain offers a very favorable legal frame for foreign investors. Spanish regulations regarding foreign investments have been liberalized and no distinction is now made between UE residents and non-residents. On one hand, several measures encourage foreigners to invest in the country; one of them grants residence visas for those purchasing real estate assets valued at more than €500,000. On the other hand, the stability of Spanish legal institutions along with the currently available investment opportunities render Spain one of the top possibilities for those aiming at diversifying their portfolios in Southern Europe. Spain is a highly secure nation from a legal, institutional and civic point of view.
EXCELLENT INFRASTRUCTURES AND COMMUNICATIONS
Over the past few years, Madrid’s airport has become fundamental in terms of international connections that allow foreign passengers to spend some days in a city that never sleeps. Thanks to its cultural diversity and tourist attractions, Madrid is a unique city in which you will always have something to do or get to know. Due to its strategic location as a departing point towards Europe, Latin America or Africa, as well as its linguistic and historical ties, Spain has always played a key role in commercial relationships between Europe and Latin America. It has also bridged the old continent and Northern Africa and has allowed maritime trade in the Mediterranean. Its huge network of roadways and railway lines as well as its ideally located ports and airports make Spain an exceptionally well-connected country that fosters trade and tourism. Spanish high-speed railway lines are the greatest in Europe with over 2,900 km and are considered a benchmark at a global level.
Spain leads several fields of innovation such as renewable energies, biotechnology, pharmaceutics, transportation and small and medium technology industries. These have proved to be the foundations upon which the country is entrenching its economic recovery and modifying the basis of its economic model. As a result, Spain has become an international leader in terms of renewable energies, infrastructures, telecommunications and water, among many others. As an example, Spanish companies are currently involved in the construction and management of roadways, airports and hospitals in North and Latin America, Europe and the Middle East. Moreover, Spain’s major textile groups are becoming the number one retail companies and are rapidly spreading all over the world.