Spain is currently the leading destination for international property investors. Its main attractions include its coastline, quality of life and particularly attractive prices. Here are all the arguments put forward for those wishing to buy in Spain in 2024.
What are the key factors favouring property investment in Spain?
The primary advantages of buying a property in Spain are its proximity to France and the quality and cost of living that prevail there. As a reminder, Spain is only 2 hours’ flight from France, a decisive criterion for French investors. You can even reach this border country easily by car or train.
Thanks to this proximity, France and Spain are linked and share many similarities. As proof, part of their history is intertwined, while the Latin culture has left its legacy on both territories. What’s more, their economies are intimately connected and there are many student exchanges.
When it comes to the quality of life in Spain, the country’s assets include its very mild climate, with the sun shining almost 300 days a year. What’s more, the country has succeeded in establishing good infrastructures in thehealth, transport and education sectors. For example, Spain has more than fifty public airports and railway stations, as well as other state-of-the-art health facilities.
In terms of the general cost of living, Spain is generally more attractive. This is true whether you’re shopping or paying your many monthly bills. The same is true when it comes to entertainment and education. More specifically, the Spanish cost of living index (COLI) is around 48.2, compared with 66 for France.
Spanish property market: unrivalled value for money and soaring demand
The Spanish property market has been booming in recent years. Rental demand is also extremely high. This is due to the fact that the housing stock is fairly low. According to the latest estimates dating from April 2024, there is a shortfall of no less than 600,000 homes in the country. According to experts, the situation looks set to continue until 2025.
Another finding is the interest shown by local homeowners in seasonal rentals. There has been an increase of over 40% in this sector since 2003. So the shortage is primarily affecting permanent accommodation.
However, investors, especially those with limited resources, are still coming up against another problem. Since 2008, mortgage lenders have required investors to have at least 30% down payment for any property loan. This is pushing younger people into the rental market.
Still on the subject of seasonal rentals, Spain can count on its huge influx of tourists. In 2023 alone, the country is expected to welcome 85 million tourists.
Finally, Spain has one of the lowest purchase prices per square metre in Europe. At the beginning of May 2024, the price was €2,080. In France, on the other hand, the price is €1,000 more.