How does an apartment or a house in the suburbs of Barcelona or Madrid sound? More foreign investors are going into the Spanish property market, despite the political uncertainty without having had a new government for 7 months now. There has been a recent increase in building permits which could be an indicator of a property boom in the near future.
Though there was a peak of real estate activity in 2007, most of the properties were in remote areas or urban fringes which did not garner as much interest as expected. That left almost half a million new homes empty . This time round, the popular properties are luxury apartments and middle-class homes in the middle ain cities and regions with a strong industrial influence.
Many leading real estate developers have been buying up land banks in regions where demand for property is high, such as the Basque country, Madrid and Barcelona. Spain is 4th on a list, compiled by PWC, of European cities with property markets offering the best prospects.
Prices of properties go from as high as 8 million euros on an upmarket apartment in Madrid’s shopping Boulevard Serrano, or a 10,000 euros per square metre unit with swimming pool and spa which despite its price tag, is only a mere 10% of a similar unit in London. The immense potential for growth is apparent to investors, and despite the Brexit vote dragging down the pound, the major cities in Spain will still have their clout with savvy investors.