Investing in Real Estate in Spain – Comaskey Properties

Investing in Spain, is it the right time to do this? Almost every day, someone asks us this question right now.

In our view, if some of the biggest investors in the world are putting their money where their mouth is, so perhaps should you. Ian Comaskey of Comaskey Property believes that we are at the beginning of another bubble.

Late last year (last year!), Microsoft Chairman, Bill Gates, used his personal investment company, Cascade Investments, to invest 108€ million in Spanish construction company, FFC. He is not alone. George Soros, Warren Buffet, and John Paulson, the successful hedge fund giant, have all in the past year, invested in the Spanish property market.

Head of the International Monetary Fund, Christine Lagarde, believes that Spain´s economy is back to health saying that Spain has turned the corner and economic growth of 0.9% is predicted for 2014 and 1% in 2015. Baby steps, yes, but financial gurus are making their investment choices and Spain is one of them. There are already lots of new building programmes, just take a look at our website and facebook pages, and you will see all the exciting new developments in this area. Prices are starting to recover and an increase in transactions from the past few years is a definite.

In this region, real estate values remain 30% lower than the peak five years ago, although the decline in price depends on the type and location of the property. Nethertheless, prices are low compared to other European countries allowing their Residents a good financial opportunity to both invest in Spain and enjoy owning their Spanish property.

In the past, when there was a buying frenzy, sometimes real estate purchases were not carried out properly with even corruption taking place as well as negligence. This fortunately barely exists now, having been thoroughly stamped out, and also investors are much better informed and cautious. It is a buyer´s market, and they are starting to come in droves, particularly the Northern Europeans, Belgian, Scandinavian, French, German, as well as Russians, Chinese and the British and Irish for their second homes.

The reason that many people are choosing to invest in the Costa Blanca region of Spain, rather than the obvious areas of Madrid and Barcelona, and in particular, choosing the gorgeous Orihuela Costa area, is the attraction of owning a Spanish property in an zone with a lovely climate, stunning beaches, low cost airlines through airports close by, and good value property. Times are changing and smaller investors want to be savvy and enjoy their investment too, not visit a pokey shoebox on the Costa de Sol, when they can own a decent size villa on the Southern Costa Blanca. The progress has been remarkable and those buying should do so in the next three years, before it is too late, and the window of opportunity is over.

Amanda Thomas for Comaskey Property October 2014

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