A review of the latest property market news. Here you will find articles about prices, regions, legal matters and tips for overseas property buyers.
History of 100 Cities: Where Is It More Profitable to Rent Housing, and Where to Buy? Renting is more profitable than buying in only eleven cities in Spain. In most major municipalities of Spain, buying housing pays off better, and only in eleven cities does renting prove to be the optimal solution. This is the conclusion of a study conducted by UVE Valoraciones, which analyzed 107 Spanish cities.
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Half of the apartments in Benidorm’s InTempo skyscraper sold, including two most expensive properties In the impressive InTempo building — the tallest residential complex in Europe — 256 apartments have been sold, including the two most expensive properties worth two million euros each. These two apartments are located in the central part of the building, in the so-called “Diamante,” and the keys have already been handed over to the buyers.
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Guide to Spain’s New Housing Law Approved by the Government The approval by the Council of Ministers of the preliminary draft of the new housing law is the first step in advancing regulation that will be sent to Congress by the end of the year. Now that the Council of Ministers has given initial approval to the preliminary draft of the new housing law, it has become clear that despite numerous disagreements, the government is capable of reaching agreements on pressing issues, especially when there is an urgent need to approve the budget. The only question is the price.
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Foreign buyers were 47% more active in the first half of 2021 than a year ago The volume of housing purchases by foreigners in the first half of 2021 grew by 47% year-on-year (47,683 transactions) after the sharp decline recorded in the first half of 2020 (−37.3%) and in the second half (−10.8%), according to data from the General Council of Notaries.
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Exclusive Mandarin Oriental Residences — Spain’s Most Expensive Housing Famous athletes, aristocrats and major businesspeople are competing for the Mandarin Oriental residences in Barcelona, with an average selling price of €30,000 per square meter. The sale of Spain’s most exclusive and expensive housing has begun amid heightened anticipation. The world’s wealthiest individuals are vying for residences in the Deutsche Bank tower in Barcelona, located at the intersection of Paseo de Gracia and Diagonal — the city’s two main streets.
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Does a real estate bubble risk exist for Spanish investors? Price growth raises alarm Home sales and purchases began growing again after lockdown and accelerated at the beginning of the year amid the recovery of the Spanish economy. Economic revival combined with pent-up demand accumulated during the most difficult months of the pandemic and record-level savings are pushing the housing market forward. As a result, while only about 39,000 transactions were concluded per month in the first months of the year, in July their number exceeded 50,000. This figure became the maximum since 2008, and in August another record was set, unseen for 14 years (49,884 transactions), according to data from the National Institute of Statistics and notaries. In addition, prices for new and secondary housing continue to rise — in October they increased by 8.6% year-on-year, according to Tinsa. The general index of this appraiser has grown by 5.1% since the beginning of the COVID-19 pandemic.
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Current Property Price Growth in Spain Buying housing in major cities and provincial capitals now costs 5.1% more than in March 2020, before the start of the COVID-19 pandemic, and 9.6% more than in October last year, due to rising demand. The housing market is returning to its usual situation. The little that could have been shaken by the COVID blow in 2020 is already forgotten. Apartment sales are reviving again, spurred by demand that poured in after the lockdown, record savings, and a huge desire to change housing. In October, buying an apartment is already 5.1% more expensive than in March 2020, directly before the start of the pandemic, according to Tinsa data. This means that housing prices have not only recovered to pre-crisis levels but have exceeded them.
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British Retirees Sell Their Spanish Homes After Brexit Last week, Mary came to a real estate agency in Torrevieja to sell her apartment where she had lived for 20 years. The British woman tearfully explained that she was selling the property because her husband had died, and his pension alone was barely enough to live on in Spain. Moreover, after Brexit she has many doubts about whether the social security system will continue to cover medical expenses or if she will have to pay for private insurance. For this reason, she decided to sell the house and return to her village in the United Kingdom.
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Best Spanish Cities for Buying Rental Investment Property The gross yield from buying property for rental purposes decreased to 6.9% by the end of 2021 compared to 7.5% in 2020. However, in several cities the yield exceeds 8%. According to a study by the Idealista portal, which analyzed sale and rental prices across various property categories, property yields significantly exceed the yield of 10-year government bonds (0.3%). Offices remain the most attractive investment category with a gross yield of 11.2% (versus 10.8% a year earlier), followed by commercial premises at 9.4% (previously 9.3%), and parking spaces at 6% (versus 6.9%).
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Best Cities in Spain to Buy Rental Property The Spanish housing market shows different yields depending on the region. According to Fotocasa’s 2021 analysis, the overall rental yield in the third quarter was 6.4%, down from 7% a year earlier due to falling rental rates. Housing yields remain above historical averages: “1.2 points higher than 5 years ago (5.2% in 2016) and 2.2 points higher than 10 years ago (4.3% in 2011).”
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Best Cities in Spain for Retirement Retirement is one of the most anticipated moments for thousands of people who have worked their entire lives. Many of them consider moving from their hometown in search of a better quality of life; some even buy a country house or villa to spend their retirement surrounded by friends. However, before taking such an important step as changing residence, it’s necessary to consider a number of factors: what a city should offer to make retirement comfortable and affordable. In this article, you’ll learn about the best cities in Spain for retirees.
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Best Areas of Madrid to Buy Rental Property Residential real estate investment offers high returns with moderate risk, although there are many myths surrounding this type of investment. Rental property generates about 3.7% annually, which significantly exceeds the returns from bonds and deposits at 0.5%. The Location Myth The common belief that central locations always appreciate the fastest is deceptive. In major cities like Madrid, peripheral areas with growth potential often provide higher returns - over 7% net profit after deducting property tax, maintenance and management expenses.
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