Spain’s real estate market crashed during the 2008 global financial crisis, leading to oversupply and a drop in demand, which resulted in cheap property prices.
So let us investigate more
Spain’s real estate market crashed during the 2008 global financial crisis, leading to an oversupply of properties and a drop in demand. This resulted in cheap property prices, which have persisted to this day. According to a report by the Spanish government, the country’s real estate prices are still 18% below their peak in 2007.
Spain’s economic situation at the time of the crisis played a big role in the crash of its real estate market. The country had experienced a decade of growth based on construction and real estate, which led to a housing bubble that eventually burst. As a result, many properties were left vacant and unsold, leading to a glut in the real estate market.
Despite the low prices, Spain’s real estate market is picking up again. Foreign investors are particularly interested in buying property in Spain, attracted by the low prices and the country’s sunny climate. In 2019, foreigners made up 12.6% of the Spanish real estate market, with Britons being the biggest group of buyers.
According to the Spanish newspaper El Economista, some of the cheapest regions to buy property in Spain are Extremadura, Castilla-La Mancha, and Murcia. In these regions, it is possible to buy a property for less than €50,000.
As the Spanish real estate market recovers, it is expected that prices will continue to rise. However, the low prices and the attractiveness of the country’s climate and lifestyle are likely to continue to make Spain a popular destination for foreign property buyers.
In the words of Spanish architect Ricardo Bofill, “Spain is a very attractive country for foreigners for its weather, its culture, its people, its food – everything.”
|Region||Average price per square meter|
Answer to your inquiry in video form
The video “Buying property in Spain. Is it a risky experience?” discusses the risks associated with purchasing property in Spain, given common issues with debts and illegal constructions. Due diligence is essential when buying properties in Spain, especially if English-speaking lawyers are engaged. The speaker also shares their personal experience with buying off-plan properties in both Spain and Portugal, which, while the experience in Spain was nerve-wracking, is much smoother in Portugal. The speaker suggests that those looking to buy property in Spain should be wary of dodgy areas, despite the attraction of low prices.
In addition, people ask
In respect to this, Why is housing so cheap in Spain?
Spain, in general, is not an expensive country to live in.
Having a lower average salary, combined with a n unemployment rate higher than in the rest of Europe, helps understand why the current price levels are relatively low . So, in that sense, as a foreigner, you will find that Spain is pretty affordable.
Furthermore, Is it worth buying real estate in Spain?
Buying a house or commercial property in Spain can be an excellent investment whether you plan to rent it out or live there by yourself. Under the statistics represented by the Central Bank of Spain in March 2022, the return expected on the residential real estate market is 10%.
Also to know is, What are the pitfalls of buying property in Spain?
Answer will be: Top 7 Pitfalls Of Buying A House In Spain
- Not Allowing Enough Time.
- Not Doing Enough Property Research.
- Not Being Financially Prepared.
- Not Having the Legal Registrations You Need.
- Not Reading the Contract.
- Not Researching Property Locations.
- Not Budgeting for Future Fees.
Additionally, Can a US citizen buy a house in Spain? Can Foreigners Buy Property in Spain? In short, yes! The Spanish government welcomes and even encourages foreign buyers in general. Though if you are specifically looking to buy a holiday let, you might need some legal help with the bureaucratic part of it.