Estimated reading time: 4 minutes
Table of contents
Spain brought in a total of 2.060 billion euros in real estate investment in the second half of 2023, placing it among the top four European countries with the most real estate investment and among the top eight in the world.
Spain real estate investment: Top 8 in the world
As shown in Colliers’“Global Capital Flows” report for the second half of 2023, Spain ranks eighth in the world thanks to its high level of real estate investment, while Britain ranks first, Germany fourth and France 10th. Together, these four countries raised a total of $16.696 billion (€15.560 billion) by the second half of 2023, representing 41% of total capital worldwide, the study highlights.
Damian Harrington, head of Global Capital Markets Research and EMEA at Colliers, said investment activity in 2023 was impacted by continued inflation and rising interest rates. This put pressure on major European economies such as Germany, Italy, Sweden and the United Kingdom, while Spain and Poland were the exceptions.
“Fortunately, by the end of 2023, central banks were able to make significant progress in curbing inflation, creating a sense that interest rates had peaked,” Harrington emphasized. Meanwhile, Director of Capital Markets at Colliers Spain, Alberto Diaz, said that, with the prospect of lower interest rates in the second half of 2024, a “greater upturn in activity” is expected from the middle of the year. Spanish real estate investment is thus likely to experience a major rebound during this period.
Gebaseerd op een artikel van Idealista: https://www.idealista.com/en/news/property-for-sale-in-spain/2024/04/23/816579-spain-among-the-four-favorite-european-countries-in-real-estate-investment-and
Reasons why Spanish real estate remains attractive
Spain ranks high on the list of countries with the most real estate investments, both in Europe and globally, for several reasons:
Attractive climate: Spain has a pleasant climate, especially in the coastal areas, making it a popular destination for tourists and investors alike. This has led to strong demand for real estate, especially in areas such as the Costa del Sol, Canary Islands and Balearic Islands.
Tourism: Spain is one of the world’s most visited countries, creating high demand for vacation rentals. Many investors see the potential to capitalize on the growing tourism industry by buying property for vacation rentals.
Affordability: Although property prices have risen in some parts of Spain, it generally remains affordable compared to many other European countries. This makes it attractive to both domestic and foreign investors. The cost of living there is also lower than in many other European countries.
Major cities: Spain has some major cities such as Madrid, Barcelona, Valencia, Malaga and Seville, all of which are attractive for investment in commercial properties, such as offices, stores and residential buildings. In addition, the various Costa’s, especially the Costa del Sol, also have smaller, cozy coastal towns with plenty of amenities for those who want a second stay.
Quality of life: Spain is known for its high quality of life, with a relaxed lifestyle, good food and a rich culture. This attracts not only tourists, but also expats looking for a second home or permanent residence.
Rising value (investment): The rising popularity due to the above reasons in itself also causes the number of Spanish real estate investments to rise, which also increases their value. So it is ideal as an investment.
Conclusion
Spanish real estate investments remain popular with investors. Spain had the 4th highest number (in €) of real estate investments in Europe and the 8th highest number worldwide. Thus, despite persistent inflation and rising interest rates, Spain scored very well (unlike many other European countries). The reasons why Spain is so popular with investors are many, but affordability and the large number of tourists and accompanying rental opportunities are especially important.
