Country Guide: Spain
Why buy property in Spain?
As Spain was recently ranked top alongside France in the uSwitch Quality of Life Index for Europe, it is easy to see why so many Brits choose to buy a holiday home there or even emigrate to the country.
Spain enjoys the most sunshine, has a longer average life expectancy and has the highest number of holidays per year in Europe, adding up to plenty of reasons to buy property in Spain.
What's Spain's property market like?
Spanish prime minister Jose Luis Rodriguez Zapatero declared recently on CNBC news that the country's property crash is over, meaning buyers could soon see their investments rise in value after picking up a holiday home for a bargain.
Chris Mercer, director of Murcia-based estate agent Mercer's, suggested that those interested in buying property abroad only have a limited window of time to get the best deals possible. "If Zapatero's observations are correct, property prices could easily gather strength, signalling the end of this incredibly favourable set of buying circumstances," he commented. "For those who have a dream of owning a home in the sunshine, now is the time to realise it."
With figures from the Spanish National Statistics Institute showing a 29.6 per cent increase in the number of homes sold in August 2010 compared to the same month in 2009, he could well be right.
Popular areas in Spain in which to invest
As with any property-buying process, purchasing in Spain is all about location. The Costa Blanca is one of the most popular destinations for Brits, being close to the tourist spots of Benidorm and Alicante and boasting miles of beautiful coastline. Stretching from Denia in the north to Torrevieja in the south, the Costa Blanca is the place to go for those who enjoy nightlife, meeting new people and relaxing on sun-soaked beaches.
Meanwhile, golfers' favourite the Costa del Sol is famous for its many courses located around Marbella. The area, which falls inside the self-governing region of Andalucia, benefits from its proximity to the warm Mediterranean sea and close links to the northern tip of Africa.
Alternatively, the Balearic islands of Mallorca, Menorca and Ibiza, each with their own characters and cultures, have become more popular in recent years since shedding their image of cheap and cheerful tourist spots.
The property-buying process in Spain
Buying a property in Spain can be a slow process and there can be hidden costs associated with purchasing. The Where on Earth Group recommends allowing at least a 10% excess on resale property and even more for new and off-plan homes to cover taxes and legal fees.
As Spanish property law is fairly complex, it is also advisable to engage a local lawyer – preferably one who has good experience in the field – who will typically charge around one per cent of the total sale price for their services.
