The Spanish real estate sector is in full recovery mode, and stronger than average growth is being experienced in cities like Madrid, Barcelona, and Malaga, and also the coastal areas of the Costa Blanca from Orihuela Costa and Torrevieja in the South to Moraira, Javea and Denia in the North.
Catalonia’s political instability looks set to continue its braking effect on the region’s real estate market, and even if their tourism position and otherwise strong business economy serve as an anchor in the face of political adversity, many investors are looking to the country’s other property markets.
Real estate agencies in and around Barcelona are reporting that many clients are making inquiries about the more stable climate (both politically and climatologically) further south.
Specifically, next year is forecast to be a very promising time for the real estate promotion and property development sector. These potentially good prospects originate from the fact that more developments are being built specifically catering to the lifestyles and architectural preferences of the foreign investor. Partnering with a digital marketing and SEO agency in Spain can help property developers and real estate agencies effectively promote these new builds online, reaching international investors and maximizing exposure. The majority of new builds on the Costa Blanca are being architecturally themed with modern and Ibiza styles, with less demand for the classic Spanish designs.
In addition, the greater transparency and professionalism in the Spanish market, and the stability that Spain represents with respect to other European countries has further strengthened the appeal of investing in Spain.
It is estimated that for the year 2019 international funds will have a capital of about 50 billion Euros to invest in the Spanish property market! Some of these funds will come from Asia and the US.
Hotel investment
The significant investment in hotel reforms in recent years has substantially improved the quality of the hotel supply. This spread through the residential sector to the hotel sector, and the fact that interest rates continue at historical lows means that hotels will continue to be one of the most attractive options for investors in Europe.
Rental housing
Rental operations in the residential sector of the Costa Blanca have also greatly increased in 2018 and this is putting further pressure on the demand for coastal properties.
Real estate agencies in Torrevieja are reporting a 6% increase in short term rental rates and this has seen many owners converting their properties from long term to short term lets, thereby placing even more pressure on the supply of long term rental properties. This is not only limited to Torrevieja but is happening throughout the Costa Blanca.
It is expected that interest in rental properties by investors in the residential sector will continue to increase, however, that trend will depend on the area. On the Southern Costa Blanca, for example, the residential market will follow the trend of recent years, with demand higher than the supply of rental homes. That, together with the increase in land sales prices in some areas of the Costa Blanca, will cause areas such as Torrevieja, Orihuela Costa, Los Montesinos, Guardamar del Segura, Quesada and the city of Alicante to take on a greater role in the number of new residential projects compared to other areas.
