Where is it more profitable to buy-to-let in Spain?

The purchase of real estate has always been one of the safest investments. Market fluctuations rise and fall in the prices of most of the properties, but they can always be rented, so recovering the money invested is much safer than in other economic activities, such as shares or automóviles investment.

Due to the slow but sure recovery of the Spanish economy, investors are taking advantage of all the opportunities that the real estate market presents them.

If you plan to invest your money in the purchase of real estate and then rent them, pay attention to this post where we will explain where to find the best real estate to invest and all the advice you need to put into practice to make your investment a resounding success.


1. Coastal areas: the best option to invest our money

As the current Minister of Energy, Tourism and Digital Agenda, Álvaro Nadal communicated at the beginning of this year 2017 the incessant increase in the number of tourists in our country is the great driver of our economy.

In the past 2016 Spain reached 75.3 million tourists, surpassing the rest of previous years, for which there was an increase of 9.9 % in tourism.

In addition, according to surveys conducted by the Ministry of Energy, Tourism and Digital Agenda, Spain achieved 5 % more revenue than in 2015 from tourism. The average expenditure of the tourist exceeded 200 euros per day, mainly in those visitors who come from abroad.

The main tourist destinations both for foreign tourists and for the Spanish themselves in the past 2016 were: Catalonia, Baleares, Canaries and Andalusia.

Therefore, an investment in real estate located in the Spanish coastal areas are always an investment, as they can be rented during the holiday season for Spanish tourists and foreign tourists.

The main reasons why we are facing an unbeatable moment to buy real estate in the coastal areas are the ten that we set out below.


1.1Recovering of the real estate market

One of the most important data that we must take into account to know if it is good time to invest in the purchase of housing is the situation of the real estate sector.

After years of stagnation, the sale of properties on the Spanish coast is undergoing a great recovery in general terms, although it is true that there is a greater rate of recovery in areas where the stock of properties is being depleted as some localities of the Costa del Sol.

Undoubtedly, it is in Marbella where the greatest real estate boom is observed and where experts recommend buying homes at the moment.

After several years of stagnation, a recovery phase is taking place in Marbella, which has as proof the increase in sales of second homes and the appearance of new promotions in different points of sale.



1.2 Prices have already hit the ground

Another reason we face the best possible scenario to buy houses in coastal areas is that their prices have already hit the ground and begin to recover. After the decline during the crisis of house prices in a generalized way, it is observed in the last two years how they gradually rise again.


1.3 Excellent communications

The location and its accessibility is one of the factors that more account are going to have in new urban development projects. The type of infrastructure and the quality of existing communications will be key to investing in the purchase of housing.

Foreign buyers already pay close attention to the existence of good airports, while the national buyer is more concerned with the existence of AVE or current highways.


1.4 Good quality common areas

The existence of good common areas such as swimming pools, gymnasiums and gardens is also one of the aspects that is more taken into account when you are going to make the purchase of a home. On the other hand, the choice of buyers is also influenced by the services offered by neighboring communities as well as the security of real estate.

The existence of a good security system both for theft and for different incidents, such as fires or floods, determines the profitability of investments.


1.5 Balance on surfaces

According to surveys conducted by various real estate companies specializing in coastal areas, the most attractive housing prototype for buyers is usually the residences with 2 bedrooms and large terraces. Although it is true that on the Costa del Sol you opt for homes with 3 or more bedrooms and larger surfaces.


1.6 Interest rates

As a result of the lowering of the Euribor, which governs most mortgages in our country, many citizens have been motivated to buy first and second homes.

Many Spanish buyers who want their money to be profitable opt for this type of investments, taking advantage of the low prices of real estate. These cases are not speculative investments, but are investments that ensure income by means of rent or a sale in the future.


1.7 Increased willingness to finance by financial institutions

The opening of credit by banks has also encouraged the purchase and sale of properties in coastal areas. Due to the vast majority of financial institutions had stock in their homes with many residences, they have decided to grant more loans in order to be able to sell them quickly.

In addition, some coastal areas such as the Mediterranean are recovering the construction of new homes with prices higher than the crisis’.


1.8 Foreign buyers increase followed by nationals ones

The excellent quality and the adjusted prices, together with the unbeatable and rich Spanish climate, make that the foreigners invest without ceasing in the purchase of residences in our territory.

In areas like the Costa del Sol and Catalonia, it is the Nordic, Belgian and Middle Eastern markets that invest the most money. However, the Spanish customer is also starting to get excited about buying coastal houses.

The Spanish are beginning to have more and more confidence in the economic situation of Spain, which has been shaken by the fall in unemployment figures that occur each year.



2. Recommendations to be successful in buying, renting and selling residences in coastal areas

Investing our money is always an activity that involves some risk and it is important to meditate on it to avoid mistakes. Not only is it necessary to find out about the advantages offered by the different buildings that interest us, but also receive the appropriate advice at the best price.

That is why it is vitally important that we always bet on professionals with extensive experience in the Spanish real estate sector, like DeluxEstates.

DeLuxEstates is a real estate agency specialized in the sale and rental of luxury properties in areas such as Marbella Centro, Puerto Banús, Marbella East, the Golden Mile and Estepona.

Thanks to the wide variety of properties they have to sell and rent, their clients are always satisfied with the services they provide when it comes to finding the homes of their dreams.

The team of professionals that make up this real estate is specifically formed to sell properties at the real market price and advise buyers on the best opportunities currently available in the different coastal areas of southern Spain.

If you are interested in investing your money in the purchase of properties and you want to obtain more information about the ones that are more profitable to acquire at the moment, contact DeluxEstates.

Posted on 7/09/2017