All EOS blogs All Spain blogs  Start your own blog Start your own blog 

Property News from Spain

News Blog

Moving to Spain: A Guide to the Spanish Digital Nomad Visa
Saturday, February 24, 2024

 

In today's rapidly transforming world, the concept of work has evolved beyond traditional office spaces and rigid schedules. The rise of digital nomadism signifies this shift, where professionals leverage technology to work remotely while exploring new cultures and geographies. Spain, with its rich cultural heritage, enticing landscapes, and favourable climate, has emerged as a coveted destination for digital nomads worldwide. To embrace this modern work lifestyle, Spain has introduced the Digital Nomad Visa, making it easier for international remote workers to move to and live a new life in its vibrant locales.

What is the Spanish Digital Nomad Visa?

The Spanish Digital Nomad Visa is a part of Spain's strategic initiative to attract international talent and foster economic growth by tapping into the global trend of remote working. This visa provides a legal framework for non-EU/EEA citizens to reside in Spain while working for foreign employers or as self-employed individuals. It's a response to the growing demand for flexible living and working conditions, catering to professionals who crave adventure without sacrificing their careers.

Requirements and Eligibility

To qualify for the Spanish Digital Nomad Visa, applicants must meet certain criteria, including but not limited to:

Proof of Sustained Income: Applicants must demonstrate a stable and sufficient income to support their stay in Spain. The required monthly income is typically above a threshold set by the Spanish government, often around 2,000 to 2,500 euros, though this may vary based on individual circumstances and the number of dependents.
Health Insurance: Comprehensive health insurance coverage is mandatory, ensuring that applicants have access to medical services without burdening the local healthcare system.
Clean Criminal Record: A clean criminal background is essential for securing the visa, and reaffirming the applicant's suitability for living in a new community.
Professional Status: Applicants must either be employed by a company outside of Spain or work as freelancers with foreign clients. Proof of employment or business activity is crucial.


Benefits of the Spanish Digital Nomad Visa

The introduction of the Digital Nomad Visa by Spain offers numerous advantages, making it an alluring option for professionals dreaming of a Mediterranean lifestyle:

Legal Residence: The visa grants legal residence in Spain for an initial period, usually one year, with the possibility of renewal for longer stays.
Access to Spanish Life: Visa holders unlock the door to Spain's rich culture, exquisite cuisine, and diverse landscapes-from bustling cities to tranquil beaches.
Favourable Tax Treatment: Digital nomads may benefit from specific fiscal policies designed to ease the transition and encourage long-term stays.
Work-Life Balance: Spain is renowned for its emphasis on work-life balance, offering an environment that fosters both professional productivity and personal well-being.

The Beckham Rule: A Unique Financial Incentive

The Beckham Rule is a special tax regime for expatriates, reducing the tax on the first €600,000 of Spanish income to just 24%. This also means the Wealth Tax and new Solidarity Tax only apply to Spanish assets, not those held in other countries.

 

How to Apply
The application process for the Spanish Digital Nomad Visa involves several steps, including submitting documentation that verifies the previously stated. Prospective applicants are encouraged to consult the Spanish consulate or embassy in their home country for detailed guidance, as procedures and requirements may vary.

Embracing the Spanish Lifestyle
Living in Spain as a digital nomad opens up a world of opportunities. Beyond the sunny beaches and historic landmarks, Spain offers a warm, welcoming community, a slower pace of life, and an exceptional quality of life. It's a chance to immerse oneself in a new culture, learn a new language, and build a life that balances work with the pleasures of discovery.
Spain's Digital Nomad Visa is more than just a permit to reside and work; it's a gateway to new experiences, friendships, and insights. For those yearning for a change of scenery without giving up their careers, this visa offers the perfect blend of opportunity and adventure. With this initiative, Spain is poised to become a leading destination for digital nomads, offering a way to live a new life filled with culture, beauty, and freedom.

Ready to start your nomadic journey in Spain? Why not take a look at what you could be renting in no time at all...



Like 1        Published at 10:14 AM   Comments (0)


Avoid these Pitfalls when Buying a House in Spain
Saturday, February 3, 2024

Purchasing a property in Spain is undoubtedly an exciting experience, but it can also be quite daunting, especially if you're new to the country. Spain, like any other place, has some unique factors and pitfalls that you need to be aware of when buying. To make your journey as smooth as possible, we've put together a comprehensive collection of things to avoid when buying a house in Spain.

 

1. Skipping the Research Phase

Spain offers a wide range of properties, each with its own charm: from modern apartments in bustling city centers to traditional farmhouses in the picturesque countryside. Before diving into the market, take some time to research the areas that interest you. Make sure to consider factors such as amenities, accessibility, and potential for rental income or resale. Thorough research can save you from costly surprises and potential disappointments down the line.

2. Ignoring Legal Advice

Common pitfalls when buying a property in Spain often involve legal issues. Engaging knowledgeable local lawyers is crucial to ensure that your interests are protected and all necessary due diligence is conducted. They can help spot potential legal problems, such as inconsistencies in property registration or pending legal disputes. Don't underestimate the value of professional legal guidance – this can be the difference between a smooth transaction and a long-term headache.

3. Overlooking Property Inspections

Just like conducting a thorough research on the local market, getting an inspection of the property is essential before committing to a purchase. A professional surveyor can identify structural issues, assess the state of essential services and utilities, and detect any potential hazards. This information is invaluable when negotiating the final price of the property and can save you a lot of money in avoiding unforeseen repairs.

4. Underestimating Additional Costs

Many buyers are surprised by the additional costs associated with a property purchase in Spain. You should be prepared for charges such as the property transfer tax (stamp duty), notary fees, lawyer fees, valuation fees, and bank charges if you need a mortgage. These costs can add up to around 10-15% of the purchase price, so make sure to budget for them in advance.

5. Rushing into a Decision

Committing to a property purchase in Spain can be a big step, so be patient and take your time. Do not rush into decisions under the pressure of agents or sellers. Visit the property multiple times, get second opinions, and ask lots of questions. If you feel uncomfortable or unsure about any aspect of the purchase, it's better to walk away than to realise too late that you've made a bad decision.

6. Neglecting Future Expenses

When looking at properties, it's easy to focus solely on the purchase price. However, be sure to consider the maintenance costs and any necessary renovation work. Older properties may require significant investments to restore them to their full potential, and this can impact your budget significantly. Additionally, make sure to factor in annual costs, such as property tax, local taxes, and utility bills.

7. Ignoring Currency Fluctuations

If you're transferring money from a different currency to buy a property in Spain, be wary of fluctuations in exchange rates. Currency fluctuations can significantly impact the affordability of your property purchase, so work with a currency exchange specialist, or try to lock in favourable rates to give you peace of mind and save on the overall cost.

8. Forgetting About Rental Regulations

If you plan to rent out your property in Spain, be sure to familiarize yourself with the local rental regulations and tax requirements. These can vary between regions, and noncompliance can lead to fines. Recruit a local property management company to help you navigate these laws and ensure your rental property is a success.

9. Miscommunication

Language barriers can often cause misunderstandings when buying a property in Spain. If your Spanish is not fluent, consider hiring an interpreter or a bilingual lawyer to ensure smooth communication between all parties involved. Miscommunication can lead to unnecessary complications and delays.

10. Losing Sight of Your Goals

Finally, always keep your goals in mind. Whether you're buying a property as a holiday home, an investment, or a permanent residence, stay focused on what you want and need. Remember your initial plan, and don't be tempted to compromise too much on the features that matter to you.

By avoiding these common pitfalls, you'll be better equipped to purchase a property that meets your expectations. With careful planning, thorough research, and professional guidance, buying a house in Spain can be a rewarding and enjoyable experience



Like 2        Published at 9:13 AM   Comments (0)


Malaga: The Executive Nomad's Paradise According to Savills
Friday, September 1, 2023

 

Malaga, internationally renowned for its paradisiacal coast, charismatic culture, and pleasing climate, has recently achieved a new accolade. According to the recent Savills' annual ranking, Malaga now proudly stands as the second-best city in the world for executive nomads.

Savills, a globally recognised estate agency and part of the FTSE 250 index, is well-respected for its extensive research related to real estate markets across the world. Their recent ranking identifies Malaga as a leading hotspot for executive nomads, greatly boosting the city's global prestige.

The Rise of Remote Work

The sudden proliferation of remote work, triggered in part by the COVID-19 pandemic, has empowered professionals to adopt a nomadic lifestyle, escaping the limitations of a fixed work location. The phenomenon of “executive nomads” has emerged rapidly, transforming the traditional workspace paradigm. This cohort comprises professionals who value flexibility and emphasise enhancing work-life balance while maintaining high productivity and standards of work.

Why Malaga?

In this new work-from-anywhere world, why does Malaga shine so brightly on the map of executive nomads?

The city, which is a marvel of the Andalusian coast in southern Spain, ticks multiple boxes for those who work remotely. Malaga promises a pleasant, Mediterranean climate that allows for year-round outdoor activities. The city's rich cultural heritage, paired with its modern infrastructure, makes it as equally attractive to history buffs as it is to fans of contemporary architecture.

Moreover, Malaga offers a lower cost of living compared to many Western European and North American cities, an aspect that appeals to many executives. Its strategic geographical location allows for easy travel across Europe and Africa, which is a significant factor for globetrotting nomads.

Apart from these factors, the city hosts high-speed internet connectivity and co-working spaces, which are the lifelines of remote work. Also, the presence of international schools and quality healthcare make it an ideal location for those with families.

Given these factors, it doesn't come as a surprise that Savills recognises Malaga as a top choice for executive nomads.

 

 

Impacts and Prospects

This recognition holds significant implications for Malaga. Primarily, it paves the way for an influx of remote-working professionals, fostering a micro-economy based on this new work culture.

The city's hospitality, real estate, and tourism sectors can all benefit from this rising trend. With the likely influx of digital nomads, local businesses can expect a significant boost, contributing to the city’s overall economic growth.

Subsequently, the distinction also holds prospects for further infrastructure developments and cultural exchanges, initiating a cycle that would further cement Malaga's appeal to the executive nomads around the globe.

The validation from Savills reconfirms Malaga’s position as a global participant in the new work culture paradigm, offering promising prospects for its future growth and development. These findings also serve as a confirmation of the rise of a new work culture that prioritises flexibility and work-life balance, ultimately transforming the professional landscape in a post-pandemic world. 



Like 1        Published at 10:14 AM   Comments (4)


How to Calculate the Price of a Flat in Spain?
Friday, June 30, 2023

When we face the purchase or rental of a house, we always face the first doubt: Is it the right time to buy a property? If we decide it is, we'll start the search, and when we find a flat we like, we will face the next doubt: Is it well-priced? Is it an expensive or cheap house? How could I calculate the appropriate price for this flat?

It doesn't matter if you are the owner, the buyer, the landlord, or the potential tenant; everyone doubts what the adequate price for a house on sale or rent would be, and it is not always easy to identify cheap flats.

 

 

Formulas to Calculate Housing Price

Sale and rental prices have a relationship that, despite being variable depending on the time and other specific characteristics (such as location or city where the property is located), allows you to have an approximate idea.

In fact, we will see a series of simple ratios that will lead us to the approximate price of any property in relation to the rent price.

a) Gross Profitability of Rent

The gross profitability of rent is the percentage resulting from dividing the annual money we would get from a rental property by its theoretical sale price. Even if we are not going to rent our house, it is a good reference to know if we are making a good investment.

Gross Profitability of Rent = (annual rental income/purchase price) * 100

For example, with a house that rents for 12,000 euros per year (1,000 euros/month) and is worth 240,000 euros, it is said to offer a gross profitability of 5% according to this formula:

(12,000/240,000) x 100 = 5%

Keep in mind that we are talking about gross profitability (not net) because it is the ratio used for this calculation by the Bank of Spain. If we wanted to calculate the net profitability, we would subtract the expenses from the income, but that number would not be useful for the calculations in this article, for which gross profitability should be used.

b) The PER

The PER (Price Earnings Ratio) is another formula that allows us to identify if we are moving in the right price when buying a house. It involves dividing the sale price by the rental price. This data is equivalent to the number of times the annual rental income is contained in the sale price, or in other words, the number of years it would take to pay for a house through the rent under current conditions. It is a universally accepted ratio for valuing assets such as companies, homes, etc.

PER = (purchase price / annual rental income)

The PER of the previous house would be 20 times, and the calculation by which it was arrived at that data would be:

(240,000 / 12,000) = 20 times

Table of Equivalency Between Rent and Sale Price

With the above data, if we had two of the three previous figures (sale price, rent price, or PER), we could calculate the third. As we have the gross profitability data of all of Spain offered by the Bank of Spain (BdE) updated quarterly, we only need to know a reliable sale or rent figure to calculate an approximation of the other variable.

Thus, according to the latest report from the Bank of Spain (BdE), the gross profitability of renting a home in Spain at the end of the first quarter of 2023 is 3.4%. If we calculate the inverse of that data and multiply it by 100 (100/3.4), we would obtain the PER. In this case, the PER would be 29.4 years or almost 353 months.

In summary, if we are sure that an identical or similar house to our interest is rented at a certain price, currently you only need to multiply the monthly rent price by 353 months to obtain a suitable approximate sale price.

For example, if a house is rented for 1,500 euros per month and multiplied by the monthly rent price by 353 months, we would obtain that the selling price should be around 529,500 euros under current conditions.

Similarly, if we have a house that could be sold for 270,000 euros, just divide by 353 to know that its rent price should be about 765 euros monthly.

With this data and knowing that the gross profitability data changes over time and should be checked regularly, we can construct a table that relates the rent price to the current sale price.

Equivalencies between the rent and the purchase price with the average PER in Spain

Rent Price                         Purchase Price

300 €                                  105,900 €

400 €                                  141,200 €

500 €                                  176,500 €

600 €                                  211,800 €

700 €                                  247,100 €

800 €                                  282,400 €

900 €                                  317,700 €

1,000 €                               353,000 €

1,100 €                               388,300 €

1,200 €                               423,600 €

1,300 €                               458,900 €

1,400 €                               494,200 €

1,500 €                               529,500 €

1,600 €                               564,800 €

1,700 €                               600,100 €

1,800 €                               635,400 €

1,900 €                               670,700 €

2,000 €                               706,000 €

2,100 €                               741,300 €

2,200 €                               776,600 €

2,300 €                               811,900 €

2,400 €                               847,200 €

2,500 €                               882,500 €

2,600 €                               917,800 €

2,700 €                               953,100 €

2,800 €                               988,400 €

2,900 €                               1,023,700 €

3,000 €                               1,059,000 €

 

Note: The data has been calculated according to the latest data published by the Bank of Spain for a gross profitability of 3.4% in the first quarter of 2023 (PER 29.4 times). To move from one column to another, you must multiply or divide one of the data by 353 months. This coefficient is valid for current data but varies over time.

 

 

[source of data - Bankinter]



Like 1        Published at 9:28 PM   Comments (1)


Discover the Orange Blossom Coast
Friday, May 5, 2023

The Costa de Azahar, also known as the Orange Blossom Coast, is located in the province of Castellón. It is a stunning coastal region that boasts a diverse array of landscapes, ranging from rocky coves and secluded beaches to lush forests and citrus groves. Living in the Costa de Azahar is an experience that many people dream of, with its vibrant culture, breathtaking scenery, and relaxed way of life.

One of the most significant advantages of living in the Costa de Azahar is the climate. With an average of 320 days of sunshine per year, this region is perfect for those who love warm weather. The summers are hot and dry, with temperatures averaging around 30°C, while the winters are mild and comfortable. This climate is ideal for outdoor activities such as hiking, swimming, and cycling, making it a popular destination for adventure seekers and nature lovers alike.

In addition to the climate, the Costa de Azahar is famous for its stunning beaches. With over 120 kilometres of coastline, there are plenty of options for sunbathing, swimming, and water sports. Some of the most popular beaches include Playa del Norte in Castellón de la Plana, Playa del Moro in Alcossebre, and Playa de la Concha in Oropesa del Mar. Each of these beaches has its unique charm and character, and there is something to suit everyone's taste.

Aside from the beaches, the Costa de Azahar is also renowned for its gastronomy. This region is known for its fresh seafood, locally grown fruits and vegetables, and traditional rice dishes. Some of the most popular dishes include paella, arroz a banda, and fideuà. The local wine is also excellent, with many vineyards in the area producing high-quality wines.

The Costa de Azahar is a culturally rich region, with a history that dates back to ancient times. The area is home to many charming villages and towns, each with its unique architecture, traditions, and festivals. Some of the most famous festivals in the region include the Fiestas de la Magdalena in Castellón de la Plana, the Fiestas de San Juan in Peñíscola, and the Fiestas de la Virgen de la Salud in Algemesí. These festivals are an excellent opportunity to experience the local culture and traditions and are a highlight of living in the Costa de Azahar.

In terms of infrastructure, the Costa de Azahar is well-connected and has excellent transport links. The region is served by Castellón Airport, which offers domestic and international flights. There are also regular bus and train services that connect the towns and cities of the region. The healthcare system is also of a high standard, with modern hospitals and medical centres in each town.

In conclusion, living in the Costa de Azahar is a dream come true for many people. The region's stunning natural beauty, vibrant culture, and relaxed way of life make it an excellent place to call home. Whether you are looking for a peaceful retirement destination, a place to raise a family, or an exciting new adventure, the Costa de Azahar has something to offer everyone.



Like 2        Published at 4:35 PM   Comments (0)


Foreigners Take Over Property Market in Spain Again...
Tuesday, February 14, 2023

 

Foreigners are acquiring more real estate at a higher price. Nationalities such as the Dutch, the Ukrainians or the Americans are gaining prominence in the market.

Foreigners have returned strongly to the Spanish housing market after the pandemic. In 2022, home purchases have broken records and the average price per m2 of real estate has reached the highest level since there are records. In the luxury sector, foreign demand has even grown more than national demand.

During this year, the British, Germans and French have remained the leading foreign buyers, although other nationalities have gained prominence. For example, the Dutch, the Norwegian, the Irish and the Ukrainian, although for different reasons. Demand from the US and Latin America has also gained momentum, boosted by the strength of the dollar against the euro.

Among the most important news in recent months is also the implementation of the tax on large fortunes, a new tax that must be paid by taxpayers with assets of more than 3 million euros and that will also affect foreign non-residents, which could have consequences on the real estate market.

The notaries estimated 72,987 housing transactions in Spain were led by foreign buyers in the first half of the year, the highest figure since 2007. In addition, these operations represented 20.3% of the total registered in the country as a whole, equaling the record registered in the second half of 2015; and the average price that they have paid for the properties has marked maximums. A trend that continued in the third quarter. According to the College of Registrars, between June and September, foreigners purchased 26,728 homes in Spain, representing 15.92% of the total number of registered sales and a new record in the historical series of this body, both in volume and weight over the total operations. The figures show a clear and consolidated upward trend and, above all, respond to the notable strength of the home transfer market.

On the other hand, foreign customers are increasingly interested in the luxury segment. This is corroborated by a study by the specialized real estate agency Lucas Fox, which states that the growth of foreign demand for luxury housing was faster than that of the local one in the first half of the year, reaching a record market share of 14.7 % at the end of the first semester. The company affirms that demand has been diversifying throughout 2022 and insists that "in an international context of growing uncertainty, foreign buyers have shown their confidence in Spanish real estate as a lifestyle option and a solid investment ”.

Foreigners have paid the highest price in history to buy homes in Spain in 2022. This is shown by data from the General Council of Notaries, which put the average price paid by foreign buyers for each m2 of houses at 2,062 euros during the first semester of the year. The amount not only shows an increase of 10.6% year-on-year but also breaks the record for the series collected by notaries since 2007, in the midst of the real estate bubble.

The new maximum price has been driven mainly by the average price paid by non-resident foreigners for their homes (€2,522/m2, also a record, growing by 2.9% year-on-year), and which far exceeds that paid by residents (€1,622/m2, increasing by 8.2% compared to the first half of 2021) and nationals (€1,560/m2, with an increase of 5.2% year-on-year).

In the first half of the year, prices grew in year-on-year terms across the whole of Spain, with Extremadura at the top of the list, with a rise of 34.3%; followed by Asturias (27.5%), Murcia (19%), Madrid (16.6%), Aragon (16.1%), Valencian Community (13.6%), Canary Islands (13.1%), Cantabria (11%) and Catalonia (10.4%).

The foreigners who paid the highest amounts per m2 in the first half of the year were those from Denmark (€2,870/m2), the USA (€2,837/m2), Norway (€2,701/m2), Sweden (€2,701/m2 ), Germany (€2,657/m2) and Switzerland (€2,567/m2). Buyers from the Netherlands, France, Belgium, Italy and Ireland also exceeded the average price paid by foreigners as a whole (€2,062/m2). On the other hand, Moroccans (€694/m2), Romanians (€1,097/m2) and Ecuadorians (€1,198/m2) paid the lowest average prices.

British, German and French continue to be the most prominent nationalities in the market by volume of operations, although this year buyers from the Netherlands, Norway, Ireland, Ukraine, the US and Latin America have gained prominence, although for different reasons.

According to data from notaries, Dutch, Norwegian and Irish foreigners led the increase in home sales in Spain, with increases of more than 100% in all three cases. In other words, between January and June, they formalized more than double the number of transactions than in the same period of the previous year.

Experts attribute this rise to factors such as the promotion of teleworking, the good climate, good communications, the technological 'hubs' that are consolidating in Spain, housing prices that are comparatively lower than in other European countries and the energy crisis.

Another leading nationality in 2022 has been the Ukrainian who, coinciding with the outbreak of the war with Russia, has formalized the highest number of home sales in Spain in history. According to notaries, between January and June, citizens from Ukraine purchased 1,237 homes in Spain, 73% more than in the first half of 2021 and almost 60% above the registered average of the last 15 years (774 units).

The increase in demand has occurred both in the traditional housing market and in the luxury sector, while the three provinces that arouse the most interest are Alicante, Valencia and Barcelona.

Buyers and investors from the US and Latin America have also gained prominence in the market, who have wanted to take advantage of the weakness of the euro, which in 2022 has lost parity with the dollar, to buy properties at a discount.

On the other hand, the British, the nationality that has stood out the most throughout history in the Spanish market, is losing ground. In the third quarter, 9.3% of these customers came from the United Kingdom, the lowest figure since registrars collect data, and a far cry from the almost 24% they came to represent of sales to foreigners in 2015.

Experts affirm that the preferences of foreigners are large houses, with a terrace and pool, located mainly in coastal areas, to be used as a second residence in most cases. Although interest is also growing in taking advantage of longer seasons or stays and teleworking, beyond the classic factors such as good weather, air connectivity or the cost of living, which is lower than in their countries of origin.

By location, the Costa Blanca (Alicante), the Costa del Sol (Málaga), the Balearic Islands and the Canary Islands continue to be the areas where foreigners have a greater weight in the housing market. However, depending on nationality there is also interest in buying a home in municipalities located in provinces such as Barcelona and Valencia in the case of Germans; or Madrid and Girona in the case of the French. On the other hand, the autonomous cities of Ceuta and Melilla and Algeciras (Cádiz) have been the areas most in demand by buyers from Morocco. The British, for their part, have focused on the capitals Madrid and Barcelona.

A study of the leading real estate marketplace in southern Europe confirms that there is also interest from foreigners in towns with less than 5,000 inhabitants. In fact, in 22 towns the demand to buy housing from other countries is higher than the national demand. The most prominent is Fuente Obejuna (Córdoba), followed by Garcirrey and El Milano (both in Salamanca), Cala Ratjada (Mallorca), Laroya (Almería), Valle Gran Rey (La Gomera) and Cómpeta (Málaga). In some of these small municipalities, the price of housing is below 500 euros/m2, while in others it exceeds 1,700 euros/m2.

 



Like 3        Published at 7:38 PM   Comments (0)


Record Property Sales in Spain last Year
Wednesday, February 8, 2023

 

The General Council of Notaries has published the annual data on home sales and mortgages for 2022, which confirms the good year for the residential market in terms of operations, with almost 720,000 transactions, representing an increase of 6.1% year-on-year, and reaching maximums of 15. It is still 15% lower than when compared to 2007, but more than 90,000 houses have been sold in the Community of Madridthe Valencian Community and, above all, Andalusia, which concentrates 20% of the total operations. The four autonomies account for 63.7% of the sales volume in 2022.

No region exceeds the data for total housing operations compared to 2007, except Madrid, barely 0.5% more, but adds fewer sales than in 2021, falling 1.1% year-on-year. Catalonia does improve by 2021 (5.5%), but it has fallen less than 600 transactions from the 2007 record (-0.5%).

Housing transactions increased in 14 autonomous regions compared to 2021, with the Canary Islands (26.9%) in the lead and its more than 31,000 operations, mainly due to the increase in operations on apartments, reaching more than 23,700 sales, but also chalets (21.3%), exceeding 7,500 sales for the first time in 15 years.

Along with the Canary Islands, two other autonomous regions linked to the tourism, second-home and international markets, such as the Balearic Islands and the Valencian Community, have also registered record sales of single-family homes, with more than 4,400 and 28,200 operations, respectively, even more than in 2007.

Despite the fact that in Madrid, home sales have fallen compared to 2021, the region had never registered so many operations on apartments, with more than 79,630, barely 0.2% more than the previous year, but in no other region have they exceeded the figures for 2021.

The Balearic Islands and Madrid hit the ceiling in the prices of homes sold in 2023. The average price of those sold transacted in 2023 increased by 7.2% in the country as a whole, to 1,615 euros/m2. However, it remains 9.8% below the 2007 price (1,790 euros/m2). But not in all communities this has happened.

Two regions with high demand in the residential market such as the Balearic Islands and Madrid have reached the maximum average price recorded in the last 15 years, with 3,200 euros/m2 and 2,657 euros/m2, respectively, the highest in Spain.

In fact, Madrid (12.2%) leads the price increases this 2022, exceeding double digits together with Murcia (11.0%), the Canary Islands (10.4%) and the Valencian Community (10.3%). The Balearic Islands grew by 7.2% year-on-year, but the average price of homes had never exceeded 3,000 euros/m2.

The rise in apartment-type properties in the Balearic Islands (10.9%) has indeed been one of the highest during 2022, only surpassed by Madrid (11.7%), to leave sales prices among the highest in the country, with 2,958 euros/m2 and 2,881 euros/m2, respectively, even surpassing 2007.

The Balearic Islands also reached a ceiling in the prices of single-family homes (3,551 euros/m2) after growing 4.2% year-on-year. The prices of villas in Madrid (2,022 euros/m2) rose by 11.5% but remained below 2008 (2,029 euros/m2).



Like 0        Published at 8:34 AM   Comments (0)


The Cheapest town in Spain to buy a property
Friday, September 30, 2022

 

The price of housing is increasing considerably throughout Spain, both for purchase and for renting. However, CaixaBank experts explain that this increase in house prices is not occurring at the same rate in all the towns in the country. In other words, there is a considerable distance between the most expensive and the cheapest municipality.


On the other hand, it must be taken into account that the Euribor has exceeded 2.4% of its daily rate in September 2022. This rise will cause mortgages in Spain to become more expensive, especially variable rate ones.

According to CaixaBank professionals, in the first quarter of 2022, San Sebastián (Guipúzcoa) was the municipality with more than 25,000 inhabitants with the most expensive price per square meter in Spain. Specifically, 4,207.8 euros/m2. All this, is according to data published by the Ministry of Transport, Mobility and Urban Agenda.


On the other hand, the amount registered in San Sebastián is 7.5 times higher than the 506.7 euros/m2 in Puertollano , Ciudad Real. Thus, Puertollano is positioned as the municipality with more than 25,000 inhabitants with the cheapest price per square meter in the country. In other words, it is an ideal location to acquire a home.


From CaixaBank they warn that “factors such as the geographical location of the home, its orientation (north or south), influence the appraisal of real estate; if it is well communicated and has access to services, usable square footage, age and condition, communal areas, an elevator or central heating or if it has systems that improve its energy efficiency, among other elements, all influence the valuation.

In short, the price of a home in Spain is determined by numerous factors that must be taken into account. Thus, despite the fact that the purchase price has skyrocketed in recent months, the rate of growth is uneven among the municipalities of Spain. Puertollano heads the list of cheapest municipalities in Spain to buy a home, according to CaixaBank and at the same time boasts an AVE (high-speed train) station.

 


As stated by 'Tinsa', a real estate data digital valuation and management platform, the average home in Puertollano is made up of a four-bedroom apartment and an area between 90 and 110 square meters. The value of the property is around 68,776 euros and the house has an average age that usually exceeds 30 years.


On the opposite side is San Sebastián. In this municipality in the Basque Country, the average dwelling is a four-bedroom flat with an area between 70 and 90 square metres. Likewise, the age of the property exceeds 30 years. However, the average value stands at 444,167 euros;  6.5 times more than in Puertollano.

Finally, CaixaBank experts estimate that “the rise in housing prices may have some continuity due to the rise in construction costs, aggravated by the war in Ukraine and the bottlenecks in the value chains. The forecasts point to the number of sales falling by just over 10% in 2023 and the price of housing slowing down significantly but maintaining a positive growth rate.

 

 



Like 1        Published at 6:02 PM   Comments (1)


Property agents pressing homeowners who are thinking of selling: now is a good time to do it.
Wednesday, September 21, 2022

Real estate agencies are saying "It's a good time to sell". They are reminding people that the price is stabilising at its maximum and that the demand still has purchasing power and there is still attractive financing available.

 


As explained by the General Council of Official Associations of Real Estate Agents of Spain, the increases in interest rates that the European Central Bank has applied and those that are yet to come will cause a fall in housing prices, as well as a decrease in the purchasing power of potential buyers and a tightening of financing conditions for mortgages.

According to the agency any owner who wants to sell should take advantage of the current conditions, which adds that in this new scenario, "mortgages are more expensive for both the individual and the investor, but it is with the individual that this increase is going to have a greater impact. The drop in housing prices predicted by the ECB (of around 9% in two years) is logical because there is going to be a part of the demand that is going to disappear from the market and, with equal supply, prices will drop".

The General Council of the COAPI (Consejo General de Colegios Oficiales de Agentes de la Propiedad Inmobiliaria) believes that some buyers are going to try to advance purchases to avoid future increases in both the price of housing and mortgages. However, there will also be another profile of individuals or investors who can afford to wait and decide to operate long-term, once the macroeconomic environment has stabilised and access to financing is less expensive.

In fact, the organisation emphasises that "in the coming months a window of opportunity will open due to the general fall in prices that will benefit investors who have liquidity and can afford to wait for the right moment to buy."

 



Like 1        Published at 9:42 PM   Comments (5)


Where is the cheapest city in Spain to live?
Friday, September 9, 2022

Where is the cheapest city in Spain to live? Establishing which is the cheapest city in Spain is not an easy task, as many aspects need to be taken into account such as the price of housing, taxes or transport.

In this case, it is also important to assess income, as a general rule, depending on the city in which you reside, the salary will be higher or lower. Based on Kelisto's latest study, which was conducted in 2018, there is one city that outperforms the rest.

Assessing the purchase of housing, taxes, transport costs and income levels of the different cities in Spain, it was concluded that Palencia was by far the cheapest city in Spain to live in, with a cost of living 30.06% below the average. After Palencia was Melilla (17.13%) and Lugo (16.94%).

 


According to the ranking carried out by Kelisto, the cheapest cities in Spain to live in are the following:

 

  1. 1. Palencia - The Cheapest City in Spain
  2. 2. Melilla
  3. 3. Lugo
  4. 4. Logrono
  5. 5. Teruel
  6. 6. Caceres
  7. 7. Zamora
  8. 8. Avila
  9. 9. Soria
  10. 10. Leon

 

Of course, the fact that they are cheaper to live there does not mean that the salaries are respectively lower. In the case of Palencia, for example, the average annual income is 23,654.17 euros.

As declared by Bankinter, in Ciudad Real the square meter costs 1,018 euros, so it can be said that it is the cheapest place to buy a home today (but not to reside). After Ciudad Real we find Ávila (1,037 euros per m2), Soria (1,041 euros per m2), Lugo (1,050 euros per m2) or Castellón (1,078 euros per m2).

In the case of renting housing, Orense is the cheapest city to rent, with an average of 5.9 euros per square metre. It is followed by Ciudad Real (6 euros m2), Zamora (6 euros m2) and Lugo (6.1 m2).

As far as the IBI (Real Estate Tax) is concerned, as explained in the OCU, San Sebastián is the city whihc has the lowest IBI at 147 euros. It is followed by Bilbao (153 euros), Vitoria (258 euros) and Pamplona (314 euros).


The price of public transport is also a great conditioning factor in understanding the cheapest city in Spain. FACUA has studied the price range and has established which city has the lowest cost of public transport. In this case, it is Logroño, with a price of 0.53 euros for a bus ticket.

It is followed by Ávila (0.55 euros), Salamanca (0.59 euros), Palencia (0.60 euros), Santiago (0.60 euros), Vitoria (0.60 euros), and Segovia (0.60 euros). The most expensive route is in Madrid at 1.83 euros for the bus ticket.

If you want to travel and not spend too much, it is best to choose one of the low season times of the year for visiting. This means that you will have to forget about travelling in summer, at Christmas, at Easter and even on 'puentes' or holidays.

The best dates to travel will be just after the summer, that is, during the month of October, or just after the Christmas season, in the middle of January. They are the cheapest trips you will find, so you could save even more than half of what it would cost you in high season.

 

 

Where are the most expensive cities to live in Spain?


Now we know the cheapest cities to live in Spain, let's look at the most expensive cities to live in. To carry out this ranking, similar aspects were  taken into account:

  1. 1. San Sebastian
  2. 2. Barcelona
  3. 3. Vitoria
  4. 4. Madrid
  5. 5. Palma de Mallorca
  6. 6. Valencia
  7. 7. Girona
  8. 8. Albacete
  9. 9. Oviedo
  10. 10.Tarragona


In the case of the most expensive cities to live in, in most cases they are also the ones that offer the lowest quality of life, so they are the least recommended to settle and live in, although they are usually good tourist destinations given the wide range of entertainment that is on offer.



Like 2        Published at 11:55 AM   Comments (1)


Spam post or Abuse? Please let us know




This site uses cookies. By continuing to browse you are agreeing to our use of cookies. More information here. x