We recently wrote about the likelihood of Spain’s low property prices soon soaring, but it is now clearer than ever that the market will recover and how beneficial a purchase at this time could be.
According to a report by the property-focused business school Instituto de Práctica Empresarial (IPE), there will be a nationwide average property price increase of 6.1% in 2018, meaning that a property bought last year for €400,000 is likely to increase in value by just under €25,000 by the end of the year. Madrid, Castile and León, and the Canaries are leading the way with property value increases, and are expected to see growths of 10.8%, 8%, and 7.7% respectively.
Previous market leader Catalonia is predicted a slow down to 4.9% as the recent political tensions in the region – the Catalan Crisis – takes their toll.
Since the 2008 financial crash, the Spanish property market has been gradually recovering. Over the last four years, the IPE estimated that prices had gone up by 21%, but they still have not reached their peak (they’re still a long way from reaching the heights of the prices during the property boom before the crash) and the impressive growth is forecast to continue.
In even more encouraging news, the Association of Foreign Investors in Real Estate (AFIRE) ranked Spain’s property market as the fourth most rewarding investment opportunity in the world, an improvement over its sixth place last year and one place above the UK’s market. This could partly explain why figures from the National Institute of Statistics showed that Spain’s new home sales shot up by 30% and resales by 26% in October 2017.
It’s not just the potential financial benefits of the soaring property market that make Spain attractive to expats. There are many other great reasons to move to Spain, too: its warm climate and relatively low cost of living when compared to other top European destinations to name just a few.
Proper financial planning to help achieve all your goals
Deciding to buy a property abroad and where in the country you’re going to live is one of the most important aspects of expat retirement planning in Spain.
Talking the your plans, hopes and retirement goals through with a financial adviser in Spain should help you establish some great plans for buying and moving to a new home.
Blacktower’s expat financial advisers could help you discover the most effective ways to manage your finances so that wealth management won’t be uppermost in your mind when moving overseas. Receiving expert, trustworthy and truly independent financial advice is essential to your expat retirement planning for Spain, so contact us today.
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
The structure of your wealth and your tax affairs should always depend on the particular laws and regulations of where you reside in the world as well as the nature of your long-term goals. The expat financial services market has evolved in order to help cater to these considerations and in some cases this includes helping ensure clients meet the demands of wealth tax.