Types of real estate in Spain

Real estate in Spain 2019

The consequences of the global financial crisis had a fatal impact, which were reflected in many areas of life and everyday life of ordinary Spaniards. Not so long ago, investing in Spanish housing was not entirely profitable, however, the country began to look for ways out of the financial crisis, the government introduced a number of tricks into legislation that still attract buyers from all over the world to invest in the development of local housing.

As for the national economy, not so long ago everything was not good at all: unemployment among the population - by 25% for housing, total confiscation of housing for debts. The local population was having a hard time, and the economy itself was collapsing. Now, thanks to foreign investors, the situation is gradually improving. As an example, we can cite several privileges that are granted to a non-resident real estate buyer. Firstly, for the purchase of real estate in Torrevieja (Spain) over 500 thousand euros guarantees the issuance of a residence permit Spain.

The city where Russians come to Spain

Torrevieja becomes even more attractive due to the fact that special lending programs are provided for foreigners to purchase real estate, the loan term reaches 25 years, and the interest rate does not exceed 2.5%. The government of the country has well noticed the fact that tourist real estate is most popular among foreigners, so it has shifted the economy to the course of development of entertainment infrastructure. In a few years, new tourist centers of Torrevieja and the Costa Blanca area have grown, the service in the old ones has been brought to perfection. In terms of geographical location, Spain was lucky: picturesque landscapes, warm sea attract people, and the penetration of the cold north wind is hindered by a chain of mountains surrounding part of the coast.

In addition, some of the cities on the shore are historical centers, there are quite a lot of cultural attractions, which could not but affect the general flow of tourists. Recently, the government has decided to increase the opening hours of shops, in the largest tourist centers it can reach 18 hours, and some outlets may work for tourists around the clock. This, firstly, will attract even more tourists to the shops, and secondly, it will unload the outlets themselves somewhat.And thirdly, real estate is becoming even more popular. Not so long ago, the cost of real estate in Spain was still falling. Compared to the most critical time - 2007,

real estate in the country as a whole has lost about one third. Due to the decrease in prices at that time, many owners who did not receive income from purchased houses or apartments and who did not have closed loans went bankrupt, unable to pay mortgage arrears. In this regard, even cheaper real estate in Spain came to the market as a whole - from banks. There was an urgent need to sell the real estate of these mothballed objects. At that time, the cost per square meter in the apartments did not exceed one and a half thousand euros, more elite housing, oddly enough - villas were sold for only 1100 euros per square meter. To date, the situation with real estate has changed quite seriously.

In the middle of 2012, the fall in real estate prices in Spain and specifically with Torrevieja, ended, experts noted the fact that the cost of housing, although not growing, is no longer falling and is not going to fall. The preserved buildings were sold to local residents and foreigners, developers began to build completely new buildings, for which demand began to rise. Some analysts have raised the question that housing prices are rising due to the rapid sale of small-sized buildings. There are fewer and fewer of them, and therefore the demand for them is increasing more and more.

The fact for comparison is that if at the beginning of 2012 it was possible to find decent housing already built in the elite resort spaces of Spain without any problems, then by the middle and towards the end of the year it became a problem. Of course, a good house, apartment, villa or bungalow can always be found, there would be money, but over the year the cost of small houses has tripled - from 50 to 150 thousand euros. All this is due to the fact that foreign investors quickly realized the benefits of buying up all real estate on the coast and in a matter of months snapped up everything, including new and mothballed buildings. Although housing prices were falling, it was still not affordable for the local population.

Therefore, foreign businessmen began to occupy a large share in the Spanish real estate market.The best-selling properties in the Costa Blanca,Torrevieja, Alicante.By the beginning of 2013, the number of investments in local houses and villas reached its record high. The trend for the growth of foreign capital began to be seen a couple of years ago. In 2011, the number of investments from foreign capital owners amounted to 4.7 billion euros. And in 2012, this figure increased by another quarter. In the first quarter of 2013, the amount of money invested here increased by another 14% year-on-year, and, apparently, the growth rate of investments will not subside for a long time.

The most active investors were entrepreneurs living in the cold regions of Europe: Sweden, Norway. Russia is also included in the list of major investors. Basically, they purchase housing for personal recreation in resort areas. Facts from the history of the Spanish real estate market: Since the beginning of 2013, the property tax in Spain has become the same for everyone, preferential payments for certain categories of citizens have been canceled. Despite the fact that in this way the government wants to accelerate the recovery and development of the economy, it is expected that such a measure will create a number of difficulties for developers and construction companies. To date, VAT in the country is 10% of the cost of the object, for buyers.

Although back in 2011, the Spanish government reduced this tax to 4%. It is interesting to note that, although the global financial crisis affected the Spanish economy, it still did not have a significant impact on mortgage conditions. The interest rate here is one of the lowest in Europe - 3-5%, and in some cases a loan can be granted for a period of more than 30 years. In June 2012, 24,300 mortgage transactions were registered, which, however, is almost 30% less than in the same period last year. Although the credit conditions are good, according to the law, only 60% of the real estate in Torrevieja can be obtained on a mortgage, the rest will have to be collected independently. With the general trend of rising prices, local residents cannot afford to buy luxury housing in their homeland, therefore, foreign citizens occupy an increasing share in the total number of purchase and sale transactions.

The number of investments from non-residents in Spanish housing is gradually growing, in 2018 it grew by 1.3% and the growth rate is only gaining momentum. During the crisis of falling prices, the cost of housing in Spain fell by $ 360 billion, taking 35% of the country's GDP to nowhere. Since the tourism sector is the most profitable branch of the economy, the Spanish government has introduced a number of new laws that provide even greater benefits for each traveler.

So, not only tourists staying in hotels are now subject to taxation, but also ordinary travelers who came to Spain to Torrevieja and stayed in a private house, for example, by renting it. Buy real estate in Spain.