Why invest in Spanish property?
Spain is a favourite destination for Brits buying property abroad - with warm summers, mild winters, a rich history and an attractive Mediterranean lifestyle just some of the factors that continue to attract droves of foreign investors.
Low interest rates and one of the world's leading tourist industries means that Spain's property market is likely to continue to boom during the coming years - despite the fact that it has experienced a slight slowdown in the last few months.
The slowdown was precipitated by an oversupply of property, with developers rushing to build new homes as Spain's immigrant population continues to rise. The Spanish National Statistics Institute says around 5.5 million foreigners will be living in the country by 2010 - 12 per cent of the country's entire population.
Buy-to-let property in Spain should be considered seriously by any investor - with the socialist government implementing legislation to open up the sector, as it attempts to increase the number of homes to rent from 11 per cent to 20 per cent over the next four years. This will bring around 3.1 million homes to the rental market - all of which are likely to experience strong demand due to inflation in city centres.
Off-plan properties have become increasingly popular in Spain - with such investments very competitively priced as developers look to maximise the fees they secure up front so as they don't have to borrow huge amounts to fund construction work. Prices usually rise before completion - and selling your flat before it is fully finished means that it is deemed ineligible for capital gains tax.
Although recent predictions of doom and gloom for the future of Spanish property have been fairly widespread of late, an increasing proportion of exports instead say that the downturn in prices instead reflects the start of a new cycle in the market - with the country's overwhelming popularity with tourists and investors alike set to sustain future growth.
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