According to the General Council of Notaries in Spain, the population of Americans residing in Spain grew rapidly by 13% between 2019 and 2021, while home purchases by Americans jumped significantly by 88% from the first half of 2019 to the first half of 2022.
What’s prompting this surge in interest? Since the onset of the COVID-19 crisis, remote work has gained prominence, prompting individuals to seek out locations with picturesque landscapes and affordable living costs. Notably, living expenses in Spain are approximately 27% lower compared to those in the United States, making it an increasingly appealing choice for investors and expatriates alike. Beyond these factors, there are various other reasons why Americans are drawn to investing in Spain.
Why Spain Attracts U.S. Property Investors
In the world of investment, Spain is a top pick to consider. It offers a mix of different opportunities. Whether it’s the variety in real estate, the stable economy, or the beautiful beaches and great weather, Spain has a lot to offer for potential investors. The price per square meter for an apartment in Spain can be up to 50% cheaper than in the USA, depending on whether it’s located inside or outside a city center.
Economic Stability and Growth Prospects
The economic stability in Spain makes it particularly appealing for investors, therefore gaining their trust when looking to invest. This stability is greatly strengthened by Spain’s varied economy, which acts as a protection against the chance of economic declines. Spain’s economy is diversified across various sectors, including manufacturing, services, tourism, and technology, making it less susceptible to shocks in any single sector.
Diverse Real Estate Portfolio
In Spain, you’ll find plenty of housing options near lovely beaches, in scenic mountains, or within bustling cities. These varied choices cater to different lifestyles, making them great opportunities for investors. Depending on what an investor wants, a beach house could be perfect for renting to tourists, while a country house might be better for longer stays. Many major cities, such as Barcelona, provide many options from villas to country houses.
Favorable Property Investment Laws
Spain offers an attractive environment for international investors. For instance, foreign real estate investors can request a special residence permit known as Golden Visa. This program requires a minimum investment of 500,000 euros but is one of the easiest ways for non-European citizens to be able to legally stay and work in Spain, or any other country in the Schengen area. However, American citizens can get a mortgage in Spain even if they don’t hold residency. It is important to get legal advice from someone who has experience with house purchases in the geographical area in which you are interested.
Spain’s Top Real Estate Markets
Americans increasingly seek opportunities overseas and recognize the critical importance of identifying the right investment destinations. In Spain, several cities and regions stand out for their unique characteristics, promising returns, and growth potential. Barcelona and Madrid rank among the top ten best European cities to invest.
The real estate market in both cities continues to surge among both locals and foreigners, as their status as major economic hubs shines bright. Madrid has a dynamic and thriving economy, making it a prime international business destination. One in every five companies created in Spain is headquartered in the city of Madrid.
Investors eyeing Barcelona are drawn to its strategic location, robust infrastructure, and diverse economic sectors, all of which lay a solid foundation for potential growth. The city’s constant influx of tourists, students, expats, and workers from all over Spain sustains a constant and diverse demand for rentals in Barcelona, securing investors a return on their investment faster than in many other markets.
After Madrid and Barcelona, Bilbao stands as the third-best Spanish city to invest in, though other cities for investment include Marbella, Valencia, Malaga, Ibiza, Mallorca, Seville, Alicante, and Gran Canaria, each with unique attributes that appeal to different investor profiles. For instance, Marbella and Ibiza attract luxury property investors, while Valencia and Malaga offer a blend of historical charm and modern amenities.
For investments to succeed, defining investment goals is crucial. Looking into market trends, talking to professionals, and considering location factors such as schools, parks, shopping centers, transportation options, job opportunities, and crime rates are a must for investors. Those considering investing abroad should partner with a local real estate agency to ensure they get all the support they need to make informed decisions.
