If you like year-round sunshine – even in the depths of a European winter – blue skies, sandy beaches and one of Europe’s lowest costs of living; then yes, buying property in Spain is a good idea.
Economically-speaking, the fundamentals are clearly bullish and show an increase in buyer demand, higher housing prices, and increased investor confidence, to include institutional investment funds buying large amounts of real estate in Spain.
So, Is it a Good Time to Buy in Spain?
It’s no secret Spain was impacted by the global housing crisis when real estate in Spain was once fuelled by debt-ridden developers and funded by credit-backed banks. It’s been over a decade and valuable lessons have been learned. It’s the reason why real estate in Spain is today funded by healthy investor equity and not credit.
More importantly, the fundamentals that make Spain the world’s most visited country (after France) with 82 million annual tourists have not changed. Spain is still Europe’s sunniest country, a diverse and dramatic landscape: mountains, oceans and desert; clean, pristine coastline with some of the most beautiful beaches in the world, low costs of living, history and UNESCO heritage, culinary delights and great international connectivity.
The fundamentals haven’t changed, but Spain’s real estate prices have. Smart buying and maximizing returns on investment requires the alignment of solid fundamentals with market timing. Spain’s housing market recovery is well underway with Spanish housing prices appreciating year on year since the end of the decade-long price decline.
For the first time in a decade, Spain’s real estate prices have posted steady year on year gains. Such price action is the classic interpretation in technical analysis that signals a market bottom and price reversal into an uptrend. Prices that post higher-highs and higher-lows are defined (in technical analysis) as a change in the trend. Spain’s housing market price trend is now truly in recovery. Buying after the technical confirmation of a market bottom and market price reversal is a good time to buy real estate in Spain.