Spain is the most sought-after country to invest in a second home
Google searches highlight Spain as the most sought-after country to invest in a second home. According to a keyword search study, Spain is one of the countries with the highest percentage of second homes, purchased as an investment asset or holiday rental accommodation.
Spain is one of the countries with the highest percentage of second homes, which are purchased as investment assets or holiday accommodation, according to a study on keyword searches on Google.
Investing in a second home in Spain not only captures the interest of Spaniards, there are many foreigner buyers who decide to invest in a holiday home in Spain, attracted by the excellent climate, beautiful and diverse coastlines, the gastronomy and ample tourist and cultural offering. In addition, Spain offers many advantages to EU citizens and a Golden Visa program for non-EU citizens.
Although the eruption of the Covid-19 pandemic and the difficulty of travelling between countries has considerably damaged the real estate sector in general, Spain stands out as the best country to invest in a second home.
The survey was carried out by iProperty Management using Google searches for keywords such as properties for sale and homes for rent. The data was released in June 2020 and search volumes were based on a monthly average over the previous 12 months.
Spain ranks first within the most searched countries, with 690,360 searches per year, of which 37,600 are carried out by users from the United Kingdom.
In fact, Spain achieved 194,000 more searches than Canada, which ranks second. Followed by France, Australia and Portugal.
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According to the survey, foreign residents represent 10.3% of the population living in Spain (2019). Which makes Spain a particularly popular and comfortable option for British buyers who want to buy a second home abroad.
According to data collected by the real estate big data platform Brains RE, 250,392 Britons currently reside in Spain. It is the third most present foreign population – after Moroccan and Romanian. UK citizens represent an important buyer niche for the Spanish residential market.
Where are foreign buyers choosing to buy in Spain?
The most popular regions for British buyers are The Valencian Community, Andalulusa (especially the Malaga province), the Canary Islands, Catalonia and the Balearic Islands. Together these autonomous communities are home to 86.8% of the total British residents living in Spain.
High rental demand on the Costa del Sol
According to the study carried out by iProperty Management, the Costa del Sol is one of the areas most in demand for property purchases, especially within the short-term rental market and with clients who have a higher purchase power.
With its all-year-round enjoyable climate and excellent infrastructure, the Costa del Sol has become one of the most desirable locations to own a home for both Spanish and international buyers.
These and other reasons have led the new development sector to launch some of its most exclusive residential projects along the Malaga coastline. Specifically, in the western region – from Cádiz to Malaga capital. According to Brains RE, Málaga registers the highest prices for new construction products.
Benahavís – the only landlocked municipality on the Costa del Sol, stands out as the town with the highest prices, “homes here are sold at an average price of 1.6 million euros, almost double the price of the second most expensive area, Marbella”, says María Moreno, data scientist at Brains RE. Here you find the prestigious residential urbanisation of La Zagaleta, a luxury development designed by Enrique Pérez Flores, which has around 250 homes built, ranging from 3,000 to 10,000 square meters and with prices ranging from 3 to 32 million euros.
As for the most exclusive new construction projects on the Costa del Sol, Mirabella Hills is topping list, both for price and characteristics. It comprises of 14 luxury villas, located in the hills of Benahavís, whose average price is 6,564 euros per square metre.
Behind it is the development, Caprice Sierra Blanca, made up of 53 semi-detached villas already completed. Prices range from 1.6 million to 2.9 million Euros.
In third place, there is the residential Le Blanc, 22 semi-detached houses located in a gated community a few meters from the Golden Mile of Marbella. The prices range between 1,495,000 euros and 1,849,950 euros.
Second home demand
According to the IV Real Estate Barometer prepared by UCI and Sira, after several months of low demand due to Covid-19 and restricted travel, the sale of second homes increased by 29% in July 2020 compared to the period of confinement.
More than 2,200 real estate experts were surveyed and the overall outlook is of optimism moving forward. On a 10-point scale, sector professionals rated their current degree of optimism at 6.7 and are already welcoming back foreign buyers to the Spanish real estate market.
In general, prices have fallen between 5% and 10% and experts suggest that this moderate decline will continue in the coming months, although in regions such as Andalusia, and specifically in the province of Málaga prices are not decreasing as much, however, owners are motivated to sell and are more open to price negotiation to close a sale on their home.
If are considering purchasing a property in Spain, contact Malaga Property Finder for a no-obligation consultation on the current market climate.