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Jonathane Dunn

Real estate in Spain, all you need to know when buying property

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Where to Buy Property in Spain: at Sea Cost Or in a Big City

Buying a property is an important step, especially when it comes to foreign countries. Many people wish to get a permanent or holiday residence on the sunny coast of Spain. If you have ever thought about such a purchase, it’s time to clarify some issues. The rich cultural and historical heritage of Spain makes it really special and very attractive country for property investors. What does the purchase of Spanish real estate promises and where is it better to look for it?

Sea View

Real estate in sunny Spain is a very rewarding investment. Although traditionally here it is divided into residential and business categories, in reality any house, cottage, villa or apartment can be used for personal or business purposes. Property on the Mediterranean coast is very popular nowadays. A good climate, 320 sunny days a year, a favourable ecological situation, well-equipped resort towns is a true dream of millions of people. The price is accessible to wide range of buyers, and its quality is famous throughout the world.

There Are Three the Most Popular Regions to Reside:

  • Costa Blanca. The coast is divided into northern and southern parts, on the border of which is the famous resort of Alicante. There are a lot of things there, such as an international airport, a large seaport, several universities, public and private educational institutions. It organically combines the historical and modern parts. The Northern part of Costa Blanca is a mountainous area surrounded by a unique green landscape with a predominance of pine trees.
  • Costa Calida. This resort is a part of the Mediterranean coast in the province of Murcia, between Valencia and Andalusia. 230 km of picturesque sandy beaches, plenty of cultural and historical sites, developed infrastructure make this area attractive for tourism and permanent residence. Here agriculture is highly developed and there is no industry. Due to this fact it is possible to live in very environment friendly area, enjoying an abundance of flowers and fruits.
  • Costa de Almeria This part of the coast is relatively recently developed as a tourist. In the region there are several unique nature reserves that attract the attention of nature lovers. Popularity among travellers has already managed quite a difficult to acquire at resort town of Mojácar in the north-east of the Costa de Almeria.

 

Big Cities – Big Prospects

Among the biggest Spain cities are Madrid, Barcelona, Valencia etc. In such places life is very fast and vivid since they are financial and business centres of the country. It’s worth to buy a real estate there if you want to be in the heart of modern Spanish life and are ready to pay more for less square meters. Big cities are not ecological paradise but they can offer more diverse and interesting life.

In metropolises there is a good choice of cool designer apartments or small economy class studios while purchasing a private house or villa within the city line is really hard and expensive.  

While buying a real estate in Spain it’s also necessary to take into account additional expenses. This is a tax on the purchase, payment of notarization of the transaction and legal services, if necessary – the cost of entering into a mortgage agreement.

Useful Tips for Buying a House in Catalonia

Getting a house in Catalonia is an ideal option for country holidays, as well as for earnings on tourists. As this is a responsible investment decision, it is necessary to assess each detail and guarantee yourself the maximum benefit and legal security of transaction.

To buy a real estate in the most economically developed region of Spain is a dream of many people all over the world. The close distance to the Mediterranean coast of France, the mild climate and the consistency of the local population from high prices for property. Southern stretches a narrow golden strip of Costa Dorada with more plains and teeming with tourist complexes. However, at present, it is still possible to find good options cheaper than the average market price.

7 Useful Tips That Will Be Useful When Buying a House in Catalonia:

  1. Choose a place of real estate

A residence should be located in a really comfortable place. Therefore, before making a final decision, you should familiarize yourself with the settlement in detail and confer with your family, whether you want to spend free time here.

  1. Study the offers on the market

In search of your dream home, the all-powerful Internet is useful. Today, almost all real estate agencies and homeowners publish their proposals on various online portals. Having spent time studying the propositions all over Spain, make for yourself a clear idea of ​​the market, current prices, trends and other nuances that come only with experience.

  1. Do not deprive yourself of choice

You should be extremely cautious when making deals that require pre-payment or a deposit. Remember that such deals actually deprive you of a choice.

Do not sign any papers until the moment you are finally dead sure in your decision to buy this very house!

  1. Consider the state of utilities at home

It is necessary to carefully check the safety of the water supply and sewerage system, electrical wiring and equipment, floors and insulation, as well as the condition of the kitchen and bathrooms.

  1. Apply to an expert

The advice of a real estate specialist will save time and money.

The expert is well aware of the local real estate market and owns tools for effective negotiations. The real estate agency is a proven assistant in the preparation of documents and will allow the investor to avoid some unpleasant surprises and unforeseen situations.

  1. Calculate your benefits when buying a house

Before buying a property in Spain with a purpose to rent to tourists, you should conduct a thorough research and many calculations. The costs of maintaining and modernizing housing, an annual property tax (IBI) and other regular payments may “eat up” a significant portion of your income.

To be engaged in tourist rent is not so simple and rosy as it seems from the outside.

So, being familiar with the situation and acting without fear, you will get the advantage to be a lucky owner of a great residence in Spain!

How Avoid Fraud While Buying Property in Spain

For many people Spain is a real paradise for its nature, sea, tasty food and comfortable way of life. To live there is a great privilege! And this dream can easily come true if you buy a villa or apartment in order to make your life more comfortable. But considering buying a property in this country just be careful not to become a victim of swindlers.   

Is it possible for a freshman who does not know the market to buy a villa or apartments in Spain safely? The three main advices are brief ones:

  • carefully study all market offers;
  • find a reliable local consultant;
  • don’t sign anything without a lawyer.

8 Effective Tips on Buying a Property in Spain Avoiding Fraud:

  1. Set aside an illusion that Spanish land law is in accordance with the legislation of your country. Be careful and carefully study local requirements.
  2. Take into consideration that in Spain there are many illegal construction sites, as well as objects with significant liabilities and potential costs for the owner. Understand the difference between Urbanizado, Fully Urbanizado and Rural – this will give you an idea of ​​the legality and potential development opportunities of the facility.
  3. Find a good local real estate lawyer before moving on to finding a villa or apartment. Spend your efforts to find a lawyer and never, never sign any legal documents without his participation! A reliable real estate lawyer should be 100% independent of realtors and seller.
  4. Never sign legal documents before they are fully translated into your language by qualified agency and approved by a lawyer.
  5. Never assume that a real estate agent is your “friend”. You can make friends in the future, but today you are just his client and a purse with ears. The percentage of commissions for the sale of real estate in Spain varies from 3 to 20%, so the rates in your current “friendship” are too high.
  6. Always use the services of a construction inspector to check the property you are buying. However, make sure that your inspector is competent, certified, speaks the language you understand and has nothing to do with the seller or the agency.
  7. When buying a property, the most important factor is the location. You can not succumb to the temptation after an external examination of the house (however beautiful and cheap it may seem) – carefully analyze the pros and cons of where it precisely located.
  8. Always buy property as if tomorrow you will have to sell it. Even apartments for permanent residence should be considered as an object for sale. Pay attention to the buying motives: would this house be bought by my friend, relative or boss? Then you will not make a mistake with your choice.

Last But Not Least

Yes, the Spanish market is flourishing; housing prices are showing growth, and why not to invest money? But before a serious transaction, please think three times.

TOP 5 Spanish Cities to Buy Property

The opinions of investors, experts and ordinary residents about each city of Spain are highly personal, contradictory and mainly depend on individual preferences.

Some believe that the eternal heat and homogeneity of the Costa del Sol climate are unbearable, and prefer a softer “European” climate of Costa Brava with season changes and a riot of greenery. Others consider the Costa Brava to be too cold, giving preference to dry air, desert landscapes and the sizzling sun of Murcia.

Each has its own standards and tastes, which a priori makes comparison of different regions a difficult task and devoid of practical sense. Potential buyers, who are at least sometimes ready to live in a purchased apartment or villa, must decide on their priorities – climate, infrastructure, community, prices, services, etc.

Our task is to acquaint you with the peculiarities of different cities of the country, and this is you to decide whether it’s advantages or disadvantages. Finally, you have to live there!

 

Top 5 Most Popular Spanish Cities for Buying Real Estate:

  • Barcelona

Barcelona is a capital of Catalonia; it is the closest city to the resort coasts of the Costa Brava and Costa Dorada. The second city after Madrid in terms of population. Barcelona is quite expensive as for cost living, which is due to the year-round visits of a really huge number of tourists. The architecture is impressive, cuisine is superb.

  • Valencia

Valencia is the most beautiful city in Spain, combining a variety of architectural forms and lines! But unlike Barcelona, there is no such an accumulation of industry, so some beaches here have a “blue flag”. Good ecology and unimaginable seafood!

  • Salou

This is one of the most popular beach resort towns on the golden Costa Dorada in Catalonia. The city with a small population provides a high level of comfort and satisfaction with a true relax. Salou is famous for its favourable local climate and beautiful beaches marked with blue flags, picturesque coves, large green zones, water and  theme parks, the most famous is Port Aventura, the second largest after the Paris Disneyland!

  • Tarragona

Tarragona is often called “small Rome” due to the abundance of archaeological monuments of world significance. Among the most prominent sites of antiquity are the Roman fortress walls and St. Anthony’s avenue, the local Roman forum, the Roman circus and the praetorium, the Roman amphitheatre and the Balcony of the Mediterranean, fortifications, etc.

  • Alicante

In general, this city gives the impression of a modern developed metropolis within the natural landscape. This is a huge tourist centre, the destination for flights from the most countries of the world. This is the largest Spanish export and fishery center. The basis of the economy of Alicante being made of seaport, beach tourism, tourist services for visitors, export of wine and olive oil, tobacco and food industry.

As you see, all these Spanish cities have their perks to live there and enjoy you time..

Madrid or Barcelona: How Different Real Estate Sector in These Cities?

Both cities are really a perfect choice, and, in fact, not cheap ones! For example, 2015 in the ranking of the most expensive cities in Europe for the cost of living Expatistan, Madrid and Barcelona were located just too close – on the 38th and 39th places respectively. However, the life of the two largest cities of Spain varies greatly in terms of real estate.

In terms of prices the options in two cities are very diverse: the cheapest studio apartment outskirts can be purchased for 70 000 euros, and the elite villa can cost more than 1 000 000 euros.

 

The Major Contributing Factors for Property Price in Both Cities Are:

  • Location.
  • The year of building and utility bill/stage of construction for investment project.
  • Interior design, furniture (if available).
  • Infrastructure, neighborhood.
  • Natural environment: parks, green zones, sea etc.

Let’s try to figure out some tips which can help clients to understand the market.

First of all, the cost of renting a flat in Madrid and Barcelona is one and a half times higher than the average for Spain. On the other hand, by European standards, an apartment or a room will not cost as much as in London or in Paris – think about this if you are an investor. Secondly, Madrid is a capital and obviously more expensive.

Madrid

In Madrid housing prices start at 3 thousand euros for sq m, and in elite neighborhoods fluctuate around 5-7 thousand euros. Especially expensive will be the accommodation in the bohemian neighborhood of Malasana, old Madrid, the quarter of Chueca and the area of ​​government buildings Chamartin.

 

 

 

 

 

 

 

 

 

 

 

The cheapest options are located in the Atocha, Tetuan, Moncloa and Arguelles districts. For example, 5-bedroom apartment of 132 sq m in a new residence area off-center can cost from 356 thousand euros while a modest studio in Malasana may go for two times more.  

 

Barcelona

Buying property is much more affordable in Barcelona. The average cost per square meter of housing on the outskirts of the city is 1900-2500 euros, and in the prestigious areas – 4000-4500. Here you will earn more on renting offering to the tourists cozy house or apartment near sea.

In Barcelona there are more spacious options with stylish panoramic sea view windows and private swimming pools with, f. e,. price of 192 000 Euro for 2-bedroom apartment of 62 sq m 20 minutes from sea by foot.   

Despite the more affordable property, it’s not to say that Barcelona is a“cheap”city: it takes much more to live there than in the capital. For example, utilities are almost twice as high as 100-150 euros per month, while in Madrid they are 60-90 euros. Food in Barcelona also costs more, about 5% more than in Madrid. Especially noticeable is the price for alcohol. However the prices for entertainment and shopping in both cities are equally high.

Company Profile

The company was established to provide an ethical, stress free service for foreign buyers looking to secure their dream home on the beautiful island of Corfu.

We are professionally licensed and legally registered. We operate with total transparency and are customer focused in all our actions. Our different clients’ needs are constantly modifying and improving the service we offer.

We work with a professional team including, Lawyer, Public Notary, Building Engineer, Architect and Builders, all of whom speak good English and who have been carefully selected for their expertise, courtesy and integrity.

We work closely with highly reputable London-based Foreign Exchange specialists to secure you the best possible rate when buying the required Euros. This is then held in a secure client escrow account. No funds are transferred until all paperwork is cleared and verified by the Public Notary ensuring you free title. This protects your money and our reputation.

We have an excellent relationship with Alpha Bank for those looking to raise finance in Greece. Alpha Bank will lend 100% to value determined by your ability to service the loan. (Contact for further details) Alpha Bank will also arrange all insurance requirements.

For people looking to generate an income from their new property, we have good contacts with reputable villa companies. We understand their preferences when selecting new properties for their portfolio and can advise you on this.