After many years of economic decline, to invest in property in the Spanish market is attractive again to investors and savers from other countries.
Foreign investors are betting for the Spanish real estate market, representing 20% of the property investment in Spain. Another reason for this growth is that the requirements to request a mortgage are becoming less strict, the families need less monthly incomes in order to buy a property, which generates more buying-selling activity in the market.
The British market was threatened after it fell in the stock market because of the Brexit. The real estate market was severely affected and the investors are searching for other options where to invest. After the referendum last June, most of the property companies fell considerably in the stock market: Barrat Developments fell 9%; Land Security 3,6%; Berkeley over 6%; and Taylor Wimpey 7%. Experts say that the Brexit will generate a 5% fall on the prices of properties in 2016.
Another reason to invest in property in Spain is the reactivation of the sector. We are climbing into the recovery of the real estate market. After registering minimum prices in 2015, property value is rising and will continue to do so. Also the Spanish citizens that hesitated to buy properties during the crisis will tend to acquire them during the following years.