Staying up to date with the Spanish property market is essential if you’re hoping to buy your own property in Spain, or if you already own property in Spain and are thinking of selling or upgrading your property. After all, whether Spanish property prices rise or fall will directly impact you.
With that in mind here’s a Spanish property market update sharing everything you need to know for September 2021:
A Rise in Spanish Property Prices in Forecast
From a property purchasing point of view, coronavirus has opened a window opportunity that means there has never been a better time to get on the Spanish property market if you’re looking for a good deal. As the Spanish economy continues to recover, Spanish property prices will begin to rise, and this trend is forecast to start now and continue until the end of 2021 and into 2022. When taken in conjunction with the current low interest rates and low inflation that is currently being experienced in Spain, this is great news for Spanish homebuyers who are in the position to move now.
Another factor to consider is that more families are in a position to buy property right now, thanks to their increased ability to save throughout the crisis due to the covid restrictions that were in place. The Spanish property market, particularly for those looking for second homes, has never looked more appealing, when compared to other European markets, such as those in France, Holland, and Germany.
Wondering how much you should expect to pay for Spanish property right now? Well in July 2021, the average price per square meter for property in Spain was €1,848, which will continue to rise as 2021 continues. Experts are advising keen homebuyers to invest now, before they are priced out of the market.
Where Are the Cheapest Locations to Buy Property in Spain?
If you have a tight budget in mind then you’ll be interested to know that the village of Carpio de Tajo in the central Spanish region of Castilla-La Mancha is the cheapest municipality to buy a home in all of Spain: You can expect to pay an average of €304 per square metre. However it’s important to remember that you get what you pay for, and therefore you might not be near the amenities you are looking for, now will you be in a sought-after coastal location. Spain’s central areas aren’t generally popular with foreign investors meaning that as well as being more affordable, they are full of rural charm and plenty of open countryside.
Increased Interest in Spain’s Luxury Property Market
There is an increased interest in luxury properties in Spain right now, and the vast majority of these properties (73%) are based in the areas of Malaga, the Balearic Islands, Barcelona and Madrid. To be considered a luxury property, a property must be valued at 1 million euros or over. These same four regions also boast the biggest number of super-luxe properties, with a value of over 3 million euros. Overall, you will find more of Spain’s luxury properties in Malaga than anywhere else. If you’re in the market for one of these luxury properties, there is no better time to begin your property search.
An Update on the Spanish Rental Market
The rental market in Spain is particularly buoyant, despite the country experiencing an overall drop in rental prices during 2020. Despite the devastating impact of the coronavirus crisis, in conjunction with Spain’s inter-annual drop in rental rates of 5.7 percent in July 2021, renting is still not considered to be a particularly affordable option for tenants in Spain, though the buy-to-let market remains strong. Rental costs continue to rise, and the Canary Islands (with an increase of 49 percent over the past five years), the Valencia region (with an increase of 46 percent over the past five years), La Rioja (with an increase of 43 percent over the past five years) and Navarre (with an increase of 42 percent over the past five years) all continue to be areas where renting is a very expensive prospect.
Could You Move to Spain for Free?
If the idea of buying either a luxury property or a more affordable property is out of your budget, it is still possible to fulfill your dream and move to Spain. Due to concerns about depopulation, many Spanish municipalities are offering free homes and/or employment to families willing to move to their towns and villages. These offers tend to be snapped up quickly, but this month the Teruel province villages of Alacón and Camarena de la Sierra are both offering families with children the chance to start a new life in rural Spain: they will be offered rent-free accommodation and a support-level role in the local school in exchange for making the move. These opportunities are generally only available to families, as the villages are hoping to grow their number of young inhabitants, and therefore children are their most valuable acquisitions.
Have you always dreamt of living in Spain or retiring to Spain? There’s no better time to make the move than right now! Whether you’re looking for golden mile properties in Marbella or bargain property ready for renovation in Andalucia, our local property experts are perfectly placed to turn your dreams into a reality. Why not get in touch to find out more about how we can help you.