Spain’s appeal to British buyers seeking an overseas property remains strong. In fact, Spain made up almost half of all enquiries for overseas properties by Britons received by Conti, a foreign mortgage specialist.
Brits are also the most common foreign buyers in Spain, owning around 170,000 homes and villas – more than any other expat community.
However, Spain’s property market suffered considerably during the financial crisis and house prices dropped sharply. Although it has since recovered, there are still some extremely desirable locations where prices haven’t yet hit their pre-recession peak.
These are the property hotspots that you should consider for an overseas investment in Spain, whether you are an expat or are looking for a holiday home.
Costa del Sol
The Costa del Sol traditionally holds a special place in the heart of many Brits. With an average of more than 320 days of sunshine per year, this stunning stretch of Spanish coastline regularly attracts many holidaymakers. Resort towns such as Marbella are particularly popular.
Additionally, the Costa del Sol is perfect for versatility; whether you’re looking for a holiday home, an investment property or somewhere to relocate to, this part of Spain will have something for you. Although the Costa del Sol is an upmarket location, properties here were not hit so hard during the crash, proving the spot’s resilience.
Arguably Spain’s most beautiful city, Barcelona is a perfect mix of stunning beaches, thriving nightlife and relaxed daytimes. Its international status as a centre of culture means that its property market has retained value. What’s more, compared with other large cities around Europe, house prices are still relatively low, with bargains to be found.
With a range of options, including apartments in the old town or villas overlooking the beach, you will find a property that’s ideal for you in Barcelona.
During the property market downturn, mainland Spain suffered much more than its islands. While house prices fell by 40% in Spain during the recession, the Canary Islands saw a decline of just 24%, reflecting the resilience of property here.
Of all the Spanish islands, the Canaries represent the best in investment opportunities, as there is growing demand for holiday homes. But this is unsurprising with the year-round sunshine and excellent facilities on offer.
Menorca is another island with huge property potential. Its dry climate sits well with British buyers looking to get away from the wet weather of the UK. In the busy season, Menorca’s popularity with tourists means that your villa will be fully booked. Meanwhile, Menorca is quiet for most of the year, making it an ideal place to relax in your own holiday home or permanent residence.
We can’t deny that the Costa Blanca suffered badly during the property market crash. Nonetheless, it is still a highly desirable location that has many properties on offer for far below their peak prices. While Spain’s recovery has been slow, there are now signs that the housing market is picking up. If you’re thinking of investing, now is the perfect time to find a bargain property, as its price will only go up from here.
Similarly to Barcelona, Madrid’s prestigious status makes it an attractive investment opportunity to foreign buyers. The capital of Spain is a hub of culture and history, as well as benefitting from Spain’s lovely weather. It also has excellent transport links to the rest of Europe – perfect for if you’re planning to relocate somewhere exciting or are looking to travel around from your holiday home.
With its world-class architecture and museums, it’s no wonder that so many Brits want to call Madrid home.
Not commonly thought of as a tourist hotspot, Valencia’s position on the eastern coast has often been overshadowed by Barcelona. However, continued investment in the city means its status is changing, and it now has a reputation as one of the best places to live in Spain.
Property sales have soared by more than 30% in Valencia recently and it is now considered a great tourist spot. As Valencia was hit during the recession, prices are still currently lower than they will be, so snap up a property fast!