Spain has re-opened for European Union and overseas tourists on June 7, 2021 and has already received the most searches of Google for houses to rent or buy real estate. This is definitely a good time as any to invest in a second home and a residence visa.
Due to the pandemic, price levels for buy real estate in Madrid have fallen by about 5% especially for second-hand homes. Income from short-term and vacation rentals have all but disappeared. The good news is that these properties can be re-listed as long-term leases according to market demand. Madrid is presently a seller’s market but the forecast is that in the next 6 months it will be a buyer’s market.
The demand for residential property rather than office or warehouse space has soared particularly in the suburbs and rural areas. Interest in larger properties with more green spaces has increased.
Second residence and a second passport
A second residence and a second passport are for many wealthy individuals is a very attractive investment option.
- minimum investment €500,000 in real estate
- €2,000,000 capital investment in Spanish Public debt or;
- €1,000,000 investment in shares in an existing Spanish company with real activity or;
- €1,000,000 deposit in a reputable Spanish bank or fund
A minimum investment €500,000 in Spain will not only buy you a prime real estate property but also the freedom of movement throughout the European Schengen area, excellent healthcare, world-class school and universities including the two if the best business schools in the world, a healthy lifestyle that is based on the Mediterranean diet and a relaxed, unhurried pace of life.
Real estate market in Spain
Real estate prices in Spain have been steadily rising since 2016 however the Covid-19 worldwide pandemic in 2020 has put a pause to this. Property experts predict that real estate prices may still fall by 5 to 10% in the short term. This is good news for those who are looking for a second home or a property to buy to live in or rent. Spain is still among the best places in Europe to buy real estate as it offers considerable returns on investment.
A wide range of properties can be bought for €500,000 – from 3 bedroom apartments or townhouses to a fully detached villa with a garden – in secondary locations. An additional €1,000,000 or more may be needed for prime locations such a Madrid or Marbella.
There are several types of real estate property in Spain that are very Spanish in layout and style such as a chalet surrounded by nature with a large garden, swimming pool and parking area that will bring the owner tranquility and pleasure. There are also mansions in the mountains that are one or two storied located in strictly residential areas and upscale neighborhoods with swimming pool, terraces and views of the city and the Mediterranean Sea. Living in front of the sea is also an option and one can avail of at least 500 square meters of open space, light-filled interiors that is perfect for a very relaxed lifestyle.
The most expensive places to buy in Spain are Marbella, San Sebastian, Barcelona and Madrid. Less expensive are The Canary Islands, Catalunia, Andalucia and Valencia. In Castilla y Leon your €500,000 can go a long way.
Golden Visa real estate
There are also several amenities that come with the Golden Visa real estate purchase. The holder can avail of some amenities like resort-style living, world-class restaurants, concierge services, resident-only social clubs and fitness facilities.
Spend this summer in your own Spanish resort-style villa. Invest in the Golden Visa Spain. Our consultants at Orience International will be happy to answer any questions you may have and assist you in any way possible.