In 2014, many entrepreneurs have grabbed the gold market in the Spain. Not only is the wealthy such as Mr. Li Ka-shing and Buffett, but the most eye-catching one Mr.Wang Jianlin who is the chairman of Wanda Group attracts big media headlines. The foreign doubts why the Chinese rich choose Spain? Why choose the moment beachhead?
2015 Three Real Estate Investment Trends in Spain:
1. The bottom prices of real estate without further decline
Due to the tightening of inland credit policies in Spain for several years, local sales of real estate plummeted and prices continued to decline. On the average, it was dropped to 61% of that in the same period of 2007 and even some coastal areas declined by 80%. The Spain has basically touched bottomed house prices, therefore no room for further decline. The occasion of the turnaround is also the best time to invest. In the meantime, Spain’s richest man, INDEXEX Group President AMANCIO ORTEGA, invested at least EUR 735 million in 2014 to purchase real estate in Spain, equivalent to 82% of its total revenue in 2014. It brought meaning that the Spain’s richest men are also hoarding Spanish properties.
2. Getting warm – 2015 economy is expected to increase 1.5%, employment rate rises to 20%
In 2014, the price of holiday resorts in Spain showed the first continuous rise again since the global economic crisis. It was widely regarded as the signal for real estate will gradually rise in the Spain. At the same time, up to December last year, the Spanish economy has seen positive growth for five consecutive quarters, while the unemployment rate has dropped by 20% on a year-on-year basis. The latest Europe report shows that the optimistic prediction for Spanish economy was expected to grow by 1.5% overall in 2015 which was exceeding the European average value of 1.1%.
3. High-end residential transactions to enhance the real estate value-added, the high rental rate of return
As a tourist resort, the total number of tourists in Spain each year is twice the total population of the country. The large number of floating population can make the Spanish landlords who never worry about renting. The annual rental rate of return is conservatively estimated at about 4%. The total annual return is expected to be no less than 10%, if combined with the increase in value of real estate. Those who are well versed in investing can immediately identify the high cost performance of the sale, so more and more investors have been taken the opportunity to buy real estate.
Judging from the above-mentioned the trending of economy and real estate in Spain, it is an undisputable fact that investment in local real estate can yield substantial profits. In addition, the European identity of the whole family is another extra gift to the investors from the Spain. In order to boost its economy and jobs creation, the Spain introduced a new policy for purchasing real estate in late September 2013, Gentle requirements and low prices have attracted more investors around the world, the Spain became the new hot country of immigrants.