4 profitable ways to invest in real estate property in Spain
Is it beneficial to invest in real estate property in Spain? What type of immovable assets is better to choose for your investments? What region produces the most successful investment? Let’s try and answer these questions one by one in the article. So.
Commercial real estate
According to statistics, the most beneficial investment into real estate property in Spain would be a purchase of the commercial property followed by leasing. The profitability of such transactions reaches 8.9% per year. The letting on the lease of the offices earns you about 8% interest. However, the buying of the garage also followed by letting on the lease would be the least profitable option for your investment. It’d earn you only 5.6%.
The cost-effectiveness level of the investment into a commercial property ( premises for shops, bars, restaurants etc.) varies from region to region. It stays in quite high figures on the average though, from 6% in Castelione to 10.6% in Saragosa.
On the Costa Blanca Coast, this percentage is quite high as well: from 8 to 10 depending on the region and the city.
The investments into office facilities prove themselves to be a little less profitable: the figures vary from 5.6% in Murcia to 7.9% in the capital, Tenerife. In Alicante, this index is approximately 6%
Residential Property
Investment into residential real estate market remains one of the most popular types of transactions with property in Spain. Also, it is a rather profitable one. Profitability on the average in Spain varies between 4.9% in La Coruna (Galicia) and 8% on Tenerife and in Gran Canaria. On the Costa Blanca Coast(Alicante) this index fluctuates between 6% and 11%. That depends on the city, vicinity to the seaside, the quality, and location of dwelling and so on.
Lately, the seaside in the Alicante province became one of the most popular courses for investments in real estate property in Spain. The secret of such popularity is the comparatively low prices on this coast. The dwelling in Catalonia or Costa del Sol is much more expensive. The climate on Costa Blanca is the mildest in Spain with warm sunny winters and not too hot summers. This undoubtedly adds to the region’s appeal. The region gratifies its investors with unwavering seasonal renting demand as well as with demand for property purchase all year round. All this can be said about most of the seaside resorts on the Costa Blanca – Torrevieja, Benidorm, Alicante, Calpe, Orihuela Costa, and others.
Buying a land lot for building construction
Traditionally the purchase of a land lot for building construction is considered a profitable deal. The prices on plots of land may vary dramatically due to their location and opportunities for construction. Nevertheless, such an investment saves you a lot of money on the commission to agents, construction materials, the setting of power-saving systems, etc. It is almost impossible to count average cost-effectiveness of such transactions in percentage terms. This sort of evaluation depends on many parameters, such as:
- Demand for lease and sale of a dwelling in this region
- Size of a land lot and opportunities for building construction there. It is allowed to build blocks of flats or villas on some plots of land, however, you can only build a detached house with limited space on others. There are a lot of legal particularities here.
The real estate agents whose specialty is purchase and sale of land for building construction can lend you a hand in counting probable profit of your transactions.
Purchase of the property which is currently under construction.
Purchase of the property still under construction also has its investment appeal. At this stage prices for such property are much lower than after commissioning. It is very important to choose a place for your investment carefully and, of course, to find the best developer company. The real estate agents could help you with these difficulties. The specialists will help with choosing the region and the city and evaluate the reliability of the developer company dealing with particular project etc.
Economists have estimated that the purchase of commercial and residential property in Spain is a much more profitable investment than a bank deposit or some others.
If you are looking for the most rational way to invest your money in Spain, specifically on Costa Blanca Coast, don’t hesitate to contact our real estate agency Espana Tour! Our experts will be happy to help you find the city and object for your investment and consult you on the best approach to the Spanish real estate market. The legal department will carry out all necessary checkouts and will prepare all documents for the purchase and sale deal. The employees of our company will help to organize your free time while you stay here, they will get you a transfer and accommodation in a comfortable apartment. And what would you say to a guided tour to the best tourist sites, with a sample of local cuisine in the best restaurants of the coast?
Contact us if you want to gain maximum profit from your investment!