Madrid and barcelona leading spanish property investment

Madrid and Barcelona are leading the way as Spain regains its place as a key property investment hub.

The proportion of high-end clients investing in the Catalan capital doubled during the first half of 2015 year-on-year, according estate agency Lucas Fox, from 30 per cent to 60 per cent. At the same time, 60 per cent of Lucas Fox Madrid clients who bought homes with a value of more than €900,000 also did so for investment purposes.

"This is a really exciting time for Spanish real estate," comments Lucas Fox founding partner Alexander Vaughan. "The tide is turning and people's faith in the market is being renewed. Transaction numbers are up, and prices - after falling up to 40 per cent - have leveled out and in some prime areas are beginning to slowly rise again."

For the first time, the in-house reports also include data from buyers purchasing mid-range properties (in the 400,000 to 900,00 Euro price range), which showed that, in Barcelona, a third of all buyers purchased property for investment purposes with the same proportion buying as a primary residence. This reflects the growing numbers of local buyers coming back to the market, traditionally a sure sign that the recovery is underway.

"The recent correction in property prices in Barcelona and the rest of Spain has once again ignited interest in properties for investment purposes," continues Mr Vaughan. "The price adjustment combined with a growing economy and more favourable mortgage conditions all point to it being an opportunistic moment to invest in Spanish property, especially in prime locations. With a yield on rental properties of up to 5-6 per cent, investing in Spanish property in some cases could be viewed as a safer bet than the stock market."