We are featured in Expansión, the most read business newspaper in Spain! A panel of property experts were asked their opinion about foreign investment in the Spanish property market and our Raf Jacobs was one of them. Read the full article (in Spanish) HERE.
Spain has always been an attractive real estate investment country. The pandemic gave that stream of foreign capital a hit, but investors are now finding their way back due to the opening of the borders.
Expansion, the most read business newspaper in Spain, published an article in which a few experts were consulted about their opinion. They anticipate a great number of transactions in the remainder of 2021 and beginning of 2022.
According to our Raf Jacobs, CEO of INSPIRE Property Experts, the decline in foreign investment has occurred in 2020, but didn’t have a very big negative impact. The inability to travel didn’t necessarily cancel operations, since those that had already started in 2019 have completed their buying process during 2020 and 2021. “Foreigners mainly buy new construction homes and that tends to have longer buying processes”, he says. The Costa del Sol and the Costa Blanca are investor’s favorite destinations and Jacobs states that in the months of September to December, investments will grow.
Reasons for the increase by foreign investments in Spain
Progressive improvement of the pandemic. By relaxing the restrictions, investments have increased rapidly while the pandemic improves and travel restrictions decrease.
Confinements and search for good weather. The good weather conditions in Spain make the country an attractive place to buy a home. “There is more desire, because many have lived under confinement in countries like northern Europe where conditions were different and harsh”, adds Raf Jacobs.
Prices drop. This point may be the trigger for the interest of foreign investors. In addition, in some European countries the price trend has been the opposite, therefore, investments are more affordable in countries like Spain. “People have not spent their money with the COVID crisis, they’ve saved and it is easier to buy a better and larger home”, says Jacobs.
Remote. This new situation facilitates the mobility of families to other countries. In fact, Jacobs affirms that 90% of foreigners who do not reside in Spain look for a spacious home with an exterior where they can work from home.
Hopes for the future. Experts predict that the housing market will have better foreign investment records soon. The improvement will occur in all segments of the residential market, rental, purchase of second homes and also investment for rent.