Madrid and valencia highlighted as investment hotspots
Madrid is currently undergoing a revival following a rocky ride during the last 7 years. Its regional economy is forecast to grow 2.8 percent by Spanish bank BBVA) - above the national average - while unemployment is falling. Official figures show that the number of property transactions was up 17 per cent in 2014 over 2013, while property prices have enjoyed their first rise since 2007.
"Five years ago, Madrid was a city in decline due to the meltdown of the financial sector and bursting of the property bubble, two sectors upon which the Spanish capital was very much dependent,” comments Rod Jamieson, Director of Lucas Fox.
"Today, following several key structural reforms and an important price correction in the property market, Madrid is back on the map as one of the best places in which to invest."
The high end real estate agency also singles Valencia as a key Spanish property market for investors, thanks to a government cash injection of nearly 4 million Euros in recent years.
Valencia, Spain Photo: O Palsson
Latest figures suggest that the number of property sales has increased by as much as 30 per cent in 2014 compared to 2013 figures.
"Valencia has developed into one of Europe's most exciting and progressive cities," says Juan Luis Herrero, Partner of Lucas Fox's Valencia office.
"Known as the 'California of Europe' thanks to its long stretches of coastline, balmy temperatures all year round, renowned gastronomy, rich cultural heritage and beautiful architecture. It also offers excellent accessibility to the likes of Madrid, Ibiza and Barcelona, it is no wonder that Valencia is increasingly becoming a target for opportunistic overseas property investors."
Like many locations in Spain, both Madrid and Valencia have seen property prices fall by as much as 40 per cent in some areas since the housing crisis struck, making affordable opportunities in areas such as the Old Town and coastal areas in Valencia and the Salamanca, Chamberi, Justicia and Chamartin districts in Madrid especially attractive.
"Madrid and Valencia offer foreign property investors three key things: value for money, an excellent quality of life and a safe long term investment," adds Lucas Fox founding partner Alexander Vaughan. "Both cities are quintessentially Spanish offering a vibrancy and cosmopolitan atmosphere less palpable in some of Spain's popular coastal areas. We believe that the desirable coastal areas of Barcelona city and province, the Costa Brava, Marbella and Ibiza will continue to prove popular for overseas investors during 2015 and beyond but this year we also feel confident that Madrid and Valencia will be attractive investment hotspots."
Lucas Fox forecasts that demand from investors will mostly come from northern Europe, China and the Middle East. Indeed, the latter two are being courted by Spain through its "Golden Visa" scheme, designed to encourage non-EU investors to buy Spanish real estate in exchance for residency permits.