Since the collapse of the Spanish property market in Spain in 2009, and the introduction of new laws by the Spanish government in 2013 that require any foreigner with Spanish residency with overseas assets worth more than €50,000 must declare what they own abroad, it is not so surprising that a considerable percentage of British people residing in Spain decided it was in their best interests financially to spend the best part of the year in the UK.
However, in 2015 nationals from the UK, France and other Northern European countries such as Germany and Sweden continue to be drawn to Spain more than any other country as a place to purchase a bolt hole in the sun. Like in previous decades, top locations for expats in Spain are the Costa Blanca and the Costa del Sol, with Almeria also growing in popularity as a place to retire or purchase a holiday home.
With property prices in Spain still much lower than they were when they reached a high in 2007, buying a dream home in a Spanish resort such as Javea is an option now available to many, who perhaps a decade ago would not have been able to afford such a move. To say the Spanish property market is now healthy, would be an exaggeration because there are almost 2 million homes empty, due to non completion of construction, or because they have been repossessed by lenders and Spanish banks when the buyers could no longer afford their mortgage repayments.
However, although this may sound grim, it is excellent news for investors or individuals who wish to purchase a property. Not all areas of Spain have been affected by the economic crisis in the same way; for example, properties in the islands of Majorca and Ibiza have retained a high-value; and while we offer many Javea property bargains, as a popular holiday resort, the town of Javea continues to be an area where property is widely sought.
At present, the Spanish banks and mortgage lenders are offering competitive financing to buy a home in Spain in an attempt to try to move the many discounted properties on their books. You will also find a number of resale properties on the open market that are priced at well under 100,000 euros, and while you may like to make some improvements here and there, there are many great buys that are ready to inhabit or let out to generate income, immediately, as is.
Hence, all in all, 2015 is an excellent time to buy a property in Spain, but like with any other major life change, you must do your research carefully. Make sure the property you purchase is in an area that you will enjoy living in, and have plans in place on how you tend to make a living if you are still of working age.
If you have any questions or would like advice on the best investment areas of Javea, don’t hesitate to get in touch.