The world has been far from normal in recent years, and just as we started to recover from the effects of Covid, the war in Ukraine started, leading to high
inflation, increased interest rates, and a tougher reality for many people. However, it’s often during tough and challenging times opportunities arise,
especially when finances are limited. That’s why I believe there is no time to wait and it’s essential to act now.
Although crises often have a bad impact I’m confident that we’ll emerge from this one stronger and more prepared than ever for good times ahead.
Over the past year, I’ve been keeping an eye on property markets across Europe, and I’ve noticed a significant drop in prices and slower market activity in many countries. However, it’s interesting to see that properties along the coast in Spain have experienced a vast spike in demand unlike anything we’ve seen before.
In the past year buyers from different demographics such as Eastern Europe have shown an increased interest in investing in Spain and at the same time, we have found a decreased demand from our traditionally strong markets.
After some research, I have identified several factors that contribute to the stability of the Spanish market. Based on this analysis, I strongly believe that investing in Spain over the next few months is a wise decision, and below I will share some interesting facts.
From 1996 to 2007, Spain’s national average house price rise by 197% (117% inflation-adjusted), one of Europe’s highest house price increases.
Despite the price rises in recent years, nationwide house prices are still about 17% (-36% inflation-adjusted) below peak levels. As a buyer you still have a potential to find properties below market value and as an investor, we can see that there is room to buy, renovate and sell in a short-term relation with a profit.
4 reasons to invest in Real Estate
1. Potential for long-term appreciation: Property values tend to appreciate over time, especially in desirable locations.
2. Cash flow from rental income: Rental properties can provide a steady stream of income through monthly rental payments, which can be used to cover the property’s expenses and generate passive income.
3. Diversification of your investment portfolio: Investing in real estate can diversify your investment portfolio and potentially reduce your overall risk exposure. Real estate investments tend to have a low correlation with other asset classes, such as stocks and bonds, which can help protect your portfolio from market volatility.
4. Control over the investment: Investing in real estate gives you a certain level of control over the investment, such as choosing the location, the type of property, and the rental rates. This level of control can help you make informed decisions and potentially increase your returns.
If you need help with finding your home we can now help you from one of our 8 offices across Spain.
Fredrik Serneholt, Founder Serneholt Estate