The growth of the Spanish economy, rising rental prices, continued appreciation of property and the tourism boom are all contributing factors to the current residential property investment boom in Spain. According to the 4th study by the real estate agency Casaktua, 10% of Spaniards are currently looking for a house or apartment to invest in the real estate sector. The typical buyer profile is an employee between the ages of 45 and 54 with savings of between €100,000 and €150,000. Regarding the different uses, 33% of Spaniards say they want to invest in a property to rent it out. 14% would like to rent out the purchased property as holiday accommodation and 12% would like to completely refurbish the property in order to then sell it again.Investing in property in Spain, while a good alternative, requires some knowledge of the market and professional advice. Casaktua has put together six useful tips so that investing in a property in Spain goes smoothly and you get a higher return: Weigh the pros and cons: buy to rent or buy to sell afterwards? Buying a property in Spain and then renting it out offers a steady monthly income as well as a home that slowly increases in value. You can also rent the property as holiday accommodation; you get more income than with long-term rental, the income is secured (usually prepaid) and it is always available for your own use. Buying a property to sell later involves less financial risk when you can sell at a higher price and also offers an immediate profit. The right property for your investment goal: The type of property that is best suited for your investment depends on what you want to use the property for. Furnished two or three bedroom apartments are perfect for short term rentals such as vacation rentals. B. as holiday accommodation or apartments for business people. If you are speculating on long-term rentals or want to sell the property later, you should prefer apartments with a good distribution, with two or three bedrooms, elevator and garage. Location in major cities and tourist areas: If you are buying a property with the intention of selling it, it is best to choose an apartment in Madrid or Barcelona, as the property market there is more dynamic. Since property prices in Spain are not increasing evenly, it is also worth investing in provincial capitals such as Santa Cruz de Tenerife, Palma de Mallorca, Valencia, Malaga, Alicante, Pamplona, Guipuzkoa or Murcia as prices are increasing there. If you are buying an apartment to rent, location is also very important. Rent is most expensive in Madrid, Barcelona and San Sebastián. Most holiday regions such as the Costa del Sol are also good choices for both investment destinations due to the increasing demand for beach holiday apartments and the increase in holiday rentals. Invest in consolidated areas: The best thing to do is to look for properties in consolidated neighborhoods with strong demand for rental housing, which are also well connected and have a wide range of services. In Madrid, for example, the districts within the M-30 ring road are very interesting. Large business centers or university districts are also good choices as there will always be demand there. Real estate in the city centers is always the best, although the initial investment will be much higher there. Properties in good condition: When it comes to a property that you then want to rent out, it is important that it is in good condition in order to make it attractive to tenants. If you want to renovate the apartment after buying it, the purchase price should be as low as possible and the property should not have a complicated floor plan. The average price of a renovation is between 450 and 500 euros/m2. The condition of the residential building should also be examined in order to avoid nasty surprises and additional costs later. How is the return calculated? : In order to calculate the initial investment, in addition to the purchase price, you must include taxes, purchase costs and the costs of fitting out and renovating the property (paints, household appliances, furniture, etc.). Once you have this information, you can calculate the return on your investment.
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