Spain’s Costas are teeming with fabulous properties suited to retirees and holiday homeowners, but the resurgent Spanish market is also throwing up some potential investment opportunities. We reveal why Madrid and Valencia have been singled out as investment hot spots in 2015.
Spain has always been popular with lifestyle buyers, who typically head to resorts along the Costas, but as stability returns to its domestic property market following a turbulent few years, its cities could offer some exciting investment opportunities for savvy buyers. And with Sterling gaining value against the euro, conditions are even more favourable to UK investors.
Parts of Madrid and Valencia in particular saw property prices fall by as much as 40 per cent during the downturn, including the Old Town and coastal areas of Valencia, and the Salamanca, Chamberi, Justicia and Chamartin districts of Madrid.
And now, as 2015 unfolds, there are signs that a recovery is underway, with figures showing a 17 per cent year-on-year increase in the number of property transactions in Madrid in 2014 – and the first property price rises there since 2007.
“Five years ago, Madrid was a city in decline due to the meltdown of the financial sector and bursting of the property bubble, two sectors upon which the Spanish capital was very much dependant,” said the Madrid branch of estate agent Lucas Fox. “Today, following several key structural reforms and an important price correction in the property market, Madrid is back on the map as one of the best places in which to invest. The last year has seen a large increase in foreign investment from many different parts of the world.”
Meanwhile, Valencia’s position in recent years as a key tourist destination and business and investment hub has been aided by a government cash injection of nearly €4 million, the success of hosting the America’s cup in 2007 and the transformation of the City of Arts & Sciences. Latest figures suggest that the number of property sales there increased by as much as 30 per cent in 2014 compared to 2013.
“Valencia has developed into one of Europe’s most exciting and progressive cities,” continued Lucas Fox’s Valencia office. “And is known as the ‘California of Europe’, thanks to its long stretches of coastline, balmy temperatures all year round, renowned gastronomy, rich cultural heritage and beautiful architecture. Offering excellent access to the likes of Madrid, Ibiza and Barcelona, it is no wonder that Valencia is increasingly becoming a target for opportunistic overseas property investors.”
Elsewhere, Lucas Fox also identified the desirable coastal areas of Barcelona, both the city and province, the Costa Brava, home to desirable resorts such as L’Escala, Begur and Palamos, as well as Marbella and Ibiza as likely to be popular with investors during 2015. It is anticipated that investors will come predominantly from northern Europe, China and the Middle East.
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