While the British property market struggles, prices in Spain continue to rise at nearly 7%, according to EU data released today. So where should you put your money?
Both Seville and Málaga are expected to see a growth in property sales in 2018. Until now these cities have not seen the increase in prices experienced in Madrid and Barcelona, but are seen, nonetheless as having great potential. Seville was named the best European city to visit this year by Lonely Planet, which can only boost property sales. Málaga has been nominated the best place to live in Spain in 2014 thanks to large-scale investment in its infrastructure. It continues to appeal to a large variety of purchasers and renters.
As the capital of the country, Madrid is at the center of the peninsula, representing a strategic framework for the settlement of corporate business headquarters. Its equidistant location on the map allows you to organize and manage distribution networks effectively with the rest of the country.
Madrid receives 3.43 million tourists according to "Euromonitor International", an important economic stimulus for the city. It also has a large floating population in the city on a casual basis, conducting studies, learning Spanish or just know the local culture; an important boost for investment in rental housing.
Tenerife saw price increases in 2017 and this trend should continue. A holiday island with wall-to-wall sunshine, it’s proving very popular with overseas investors. Tourism on the island has been growing for many years and returns on the rental property here are high. Beware though, if you intend to rent out your property to tourists you must ensure that it lies within a community which permits you to do so.
The Basque Country is one of Spain’s most prosperous regions and attracts buyers from all over the globe. Bilbao is one of Spain’s most important cities and properties on its perimeter are proving increasingly popular for both investors and those buying a home.
San Sebastian is another city worth considering. It is one of the most expensive cities in Spain as far as the cost of living goes but has a flourishing restaurant and tourism sector and people are always seeking affordable accommodation. A small apartment here could be an excellent investment.