Why is it profitable to invest in Spanish real estate now?

5 reasons to invest in Spanish real estate:

– According to a survey by the consulting company PwC in 2016, resort real estate in Spain (in particular Barcelona) was included in the rating of 15 real estate markets in Europe with the best investment prospects.

– Low interest rates (Spanish banks provide loans to non-residents in the amount of 60% of the property value at an average of 4% per annum).

– Availability of inexpensive real estate on the market with potential for price growth (As of the first quarter of 2016, real estate prices in Spain are more than 40% lower than the peak of 2007. According to forecasts by Engel & Völkers, in 2016, housing prices in Spain could grow by 7%, and analysts from the University of Barcelona predict growth of 18% on average in Barcelona).

– Demand exceeding supply (Demand for new buildings significantly exceeds supply. In 2015, the number of new buildings under construction in Barcelona alone increased by 87% year-on-year to 1,400 housing units. However, the record level of 2007 (4,700 units) will not be reached anytime soon. According to forecasts from the Servihabitat.com website, in 2016 the number of construction projects started in Spain will increase by 10% to 44,600, and the number of completed projects will increase by 12.5% to 50,800).

– Growing tourist flow (from 2012 to 2015 the number of tourists in Spain grew continuously, it can be assumed that the positive trend will continue in the following years).

Objective reasons indicating that Spain has recovered from the 2008 crisis and has become a promising market for real estate investment.

Prospects for the development of the Spanish real estate market:

Trading Economics estimates that Spain's GDP will continue to grow, unemployment will decline and interest rates will remain at record lows in the coming years. The improved economic situation will contribute to the growth of property prices not only in Spain as a whole, but also in individual markets, especially Barcelona and Madrid.

In 2016–2017, the main trends in the Spanish real estate market will be:

• rising housing prices: real estate prices can be expected to rise by 7–18% per year;
• increasing demand: mortgage rates will remain low, so sales will continue to grow;
• shortage of new buildings: in the primary real estate market, supply is not able to cover the growing demand, so investor interest will shift towards redevelopment projects (Added Value);
• increase in tourist flow: growth in rental rates for housing.

The Spanish market is therefore advantageous for speculative investment in order to profit from future price increases and from renting out properties to tourists.