Rising inflation, soaring interest rates, currency fluctuations, and geopolitical tensions in neighboring regions are all factors that may influence the decision on where to securely invest our savings. Real estate investment, coupled with capital diversification, stands as one of the most favored strategies for allocating financial resources. While properties are available in various countries like Croatia, Italy, or even Dubai, Buying Property in Spain emerges as a prime option considering its political stability, cultural appeal, and promising returns on investment.
Whether it’s a house or an apartment nestled along the sun-kissed coastline, such investments not only serve as stable assets but also offer opportunities for a fresh start. Whether it’s enjoying winter retreats, capitalizing on high-season rentals, or establishing a second home or primary residence, Spain offers diverse options to suit different lifestyles. The costs associated with property purchases in Spain, similar to other European cities, depend on various factors such as location, size, and amenities.
An apartment near a pristine beachfront, surrounded by vibrant tourist attractions, might seem pricey at first glance. However, such investments promise lucrative returns, making them attractive options for those seeking profitable passive income streams. Conversely, for a similar investment, one might consider a spacious villa slightly removed from the coastline but still within easy reach of amenities. These properties often boast larger living spaces, private pools, lush gardens, and panoramic vistas, offering year-round comfort and luxury living.
Comparing property prices in cities like London, Paris, or Berlin with those in Spain reveals that the Spanish market remains competitive. The prospect of exchanging an apartment in a metropolitan hub for a Mediterranean retreat presents an enticing proposition. With modern tools facilitating remote work and the growing trend of flexible lifestyles, an increasing number of Europeans are choosing Spain as their new home away from home. Moreover, the warmth and hospitality of the Spanish people create an inviting atmosphere, appealing to those seeking a welcoming community and vibrant cultural experience.
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Properties in the primary market are often designed according to the latest trends and standards. They are fully finished, including floors, walls, tiles, bathrooms, kitchens, all pre-installations for appliances, as well as built-in wardrobes in bedrooms and other elements. The only things that may be missing are appliances, air conditioning, and freestanding furniture (such as chairs, table, beds, etc.), which can be purchased separately or taken advantage of through the developer’s offer of a furniture package. It is worth noting that each promotion on the market is different, and in some offers, furniture, appliances, or air conditioning may already be available. These differences result from individual developer strategies and cater to various customer needs. They feature modern equipment, energy-efficient solutions, advanced security systems, and other modern features that can enhance the comfort of living.
When purchasing a property in the primary market, there is often the possibility of customization. Buyers can influence the choice of finishes, colors, room layouts, and the selection of the best orientation and arrangement.
Developers offer warranties on newly constructed properties, such as construction warranty, equipment warranty, and installation warranty. This gives buyers the assurance that, in case of problems with the building or its elements, the developer will be responsible for repairs or replacements. The warranty conditions are 10 years for structural defects, 3 years for defects related to use, functionality, and safety, and 1 year for finishing defects.
Mandatory bank guarantees protect clients purchasing properties in the primary market by ensuring that, in case of bankruptcy or insolvency of the developer before completion of construction, the bank undertakes to return the deposited funds to the clients.
Typically, 70% of the total purchase price is paid on the day of signing before a Notary, after receiving your property. The construction period (usually 12-24 months) gives us time for further savings or to prepare for a mortgage. By usually paying a 30% deposit to the developer, we buy a property, known as “off-plan,” at the current market price, taking into account the possible phases of delivery of the different parts of the project. If we buy at an earlier stage, the price will be lower for the same property, which in later stages will be higher, considering the appropriate market prices and the time until the total completion of the project and the start-up of all common parts. Anyway, approximately 70% of the value of the purchased property, you only pay upon receipt, when your property is already worth between 20% and 30% more, the difference is due to the overall increase in property values in the market on the Spanish Coast, which has been steadily growing since 2013-2014, averaging about 10% to 15% annually. Banks are also willing to grant mortgages for properties in the primary market. Often, the property value is already much higher in the last payment upon receipt, which is a significant advantage from the investor’s point of view or the potential assessment of the bank in the case of a mortgage.
Going to the developer without an agent, purchase prices do not change, the only thing that could change is a mistaken purchase. By using our services, you do not pay any additional fees, no commissions from your side, and our advice will be invaluable in terms of choosing the most beneficial option. Developers also differ in terms of their quality, final product, we are here so that you can avoid unpleasant surprises and disappointments. As independent intermediaries and advisors, we have unlimited access to properties from the primary market. Our constant presence on the Spanish Coast allows us to monitor new investments, works, and construction progress to better advise our clients.
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Transactions in the secondary market are usually completed within two months, and when using a mortgage, around three months. Reserving a potential property typically requires a deposit ranging from €3000 to 10% of the purchase value.
If you are still unsure about the location of your future property, we will be happy to suggest places and districts that fit your preferences. We also know areas of future investments where the increase in property prices will be evident.
In the secondary market, there is the possibility of negotiating the price with the current owner. Presenting an official offer often benefits the buyer and speeds up the sale for the seller.
Most properties in the secondary market are sold with furniture and appliances. Even if the furniture and appliances do not suit your tastes, it is not necessary to make additional purchases to start enjoying the property immediately.
Buying a property in Spain, in the secondary market provides the opportunity to carry out renovations or improvements according to your own tastes and needs. It is important to note that some renovations may require approval from the community of owners or the city council, and not all renovation costs are tax-deductible in case of eventual resale with profits. We recommend informing us about planned property renovations.
We provide renovation services ranging from minor improvements, such as wall painting, to complete renovations and transformations. We also prepare properties for tourist rental and install solar panels. Contact us to schedule a renovation assessment for your property.
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Buying a property in Spain with mortgage financing is possible for many international buyers. At Costa Ibérica Real Estate, we guide you through the required documentation, the usual process and the mortgage options available with Spanish banks.
Our aim is to help you understand your purchasing capacity with confidence before making a decision. We also help you prepare your mortgage application and coordinate the necessary steps so you can move forward with greater peace of mind.
If you're buying from another country, currency exchange rates can have a direct impact on the final cost of your property. That's why it's important to plan your transfers carefully and understand the options available before making any significant payments.
At Costa Ibérica Real Estate, we can guide you through the process of managing your international payments more efficiently, helping you avoid unexpected costs and purchase your property in Spain with greater peace of mind.
The security of your property is also an important part of a well-planned purchase. That's why we can help you explore alarm and security solutions for your new home in Spain.
Whether you're buying a second home or a property to live in all year round, having a reliable security system can give you greater peace of mind from day one. Costa Ibérica Real Estate is here to guide you in protecting your home in Spain.
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