Recent figures indicate that the number of Brits owning property abroad is set to double in the next five years. Why Spanish property is proving to be such a strong contender?
According to recent figures from the Mintel International Research Group, the number of Brits now owning property abroad is 800,000, an increase of 45 per cent in just two years.
“We have been aware of the rapidly burgeoning overseas property market”, says Steve Emmett, Chairman of Federation of Overseas Property Developers Agents and Consultants (FOPDAC), “which is why we urge buyers to use the services of well respected and reliable companies such as members of the FOPDAC so that they are not open to unscrupulous dealings in this huge unregulated market.”
According to the Office of National Statistics, more than £6 billion has been invested in Spanish property, accounting for 27 per cent of British foreign investment.
However, the profile of overseas buyers investing in Spanish property has changed in recent years with a growing trend towards buyers in their 30s with families.
“The younger investor is often looking to relocate as Spain is safer the UK, their living is better and the schools have high levels of attainment,” says Antony Aguado of Our Home Abroad.
In general, though, despite this changing buyer demographic some areas of Spain continue to be popular with British buyers.
The Mallorcan property market continues to enjoy consistent growth with rental income coming from holiday lets. It remains a popular destination for British and North Europeans holidaying abroad with 300 days a year of sunshine and departures of budget airlines from 23 UK airports direct into Palma. Seventy-five per cent buy-to-let mortgages are currently available on the island at 4.45 per cent interest, and banking and legal introductions will be made available when the time comes for investors to make a purchase.
Fuerteventura and Malaga are also continuing to attract British investment to the Spanish property market due to their close proximity to airports offering cheap regular flights from the UK.
Granada and the surrounding area are likely to become a hub of Spanish property investment in and development when a new motorway linking Malaga with Almeria opens up over the next couple of years. “This area is recommended for investors as it is just at the start of a development cycle,” said Craig Stocks of Eden Villas. “Granada is a superb investment area as it is far away from fear of any foreign investment bubble.”
A traditional renovation property townhouse with three bedrooms, two receptions, a kitchen and covered patio and terrace situated between Jaen, Malaga and Granada in the village of Montfrio is on the market at £51,000 through 1Casa.
Monte Castillo, a completely refurbished one- or two-bedroom freehold bungalow on the popular area of Caleta de Fuste on the Canary Island of Fuerteventura is currently on the market through Where on Earth for those thinking of investing in the area. Each fully furnished bungalow has either a terrace or patio and has access to a communal pool. Prices start from £75,000 / €108,000.