Investing in real estate
Nevertheless, the Second Home International exhibition last week in the Utrecht Annual Fair showed no less than other years. You can now stop stoning better than investing in shares or attending the bank, broker Hans van Let tries to explain the remarkable start. A second house in Spain? 96,000 euros on the table and you are the proud owner of 90 square meters in a condominium with swimming pool.
It can also be much more expensive at this fair for people looking for a second home. Hans van Let who stands at the entrance to the fair with his company Casa Las Dunas says that most visitors realize that it is time to buy a second house because of a new negotiation situation due to the financial crisis. It is also the time to stop it in stone, as an investment. Instead of putting on the couch. It is no longer certain either. To quit for shares. Over a year or five, the prizes have been added again, estimates Hans Van Let.
On the Costa Blanca it is very attractive for a private individual to invest in real estate. This is due to the annual price increases of 10% and the rental opportunities we offer you. But also for investors there are particularly attractive options.
Prices for building land have doubled since 1994 (in the popular tourist areas even more than doubled). Spain is therefore the only EU country that has realized a value increase over real estate over the last 10 years (adjusted for inflation).
In recent years, an average of 100,000 homes have been sold to foreigners a year. By nationality, the English are the largest group of buyers followed by Germans, Dutch, Scandinavians, Belgians and French.
Due to economic problems, German demand for Spanish real estate decreased significantly in 2002. Due to the strong English pound and the Norwegian crown, the English and Norwegian demand for Spanish real estate is still high.
Because of the Baby Boom effect in North West Europe (the first generation after the war, which will retire within 5 and 10 years), the demand for Spanish real estate will only increase. The OECD predicts that another 5 million (retired) northern Europeans will settle in Spain over the next 10 years.
The ICEX (Spanish Export Organization) has calculated that in the next 20 years alone, 600,000 new houses for northern Europeans must be built on the Costa Blanca to meet demand.
The NBBL (Norwegian Construction Federation) with 600,000 members has investigated that half of their retired members in Spain want to buy a house for permanent or permanent residence. Because many popular coastal areas are already fully built, one sees a shift of construction to places where There is still room for building (Murcia and Almeria counties).
The expectation is that price increases will be realized in the coming years of an average of 10% per annum. However, the height of price increases will be increasingly determined by the location. But also for Spanish real estate, past results do not guarantee the future.
Perhaps we can advise you on the possibilities of investing in real estate in Spain.