Spain is the third most popular tourist destination after France and United States making it a very attractive place to invest in real estate. Its good weather means that people to travel there all year round and in 2016, 75 million tourists visited Spain. Stunning architecture, rich history, and magnificent views are only some of Spain’s virtues.
Since the Global Financial Crisis, Spanish house prices fell by 41.9%, started to rebound in 2016, and increased by 1.67%. The rise is expected to continue this year as demand is slowly growing strong. Last year, the total number of home sales in Spain increased by 14%. The market is now on the move and now is the time to buy.
Yield figures are improving this year compared to 2016, making Spain a good place to invest. In Barcelona, house prices cost US$463.21 per square foot (sq. ft.) with rental yields ranging from 3.9% to 5%. In Madrid, apartments cost US$426.79 per sq. ft. and deliver yields almost similar in Barcelona ranging from 3.9% to 4.7%. However, property away from the city center brings in higher rental yields ranging from 4.15% to 5.25%.
In Sevilla, house prices can be bought at US$322.64 per sq. ft. with a gross rental yield ranging from 3.68% to 5.56%. In Palma de Mallorca, properties cost US$395.11 per sq. ft. with rental yields of 3.36% to 4.61%. This is a very popular holiday island – so could be worth looking at Airbnb type services to rent out short term and maximize returns.
Non-Spaniards can buy properties in Spain as long as they have an identification number issued by the government. Non-Spaniards can also avail of mortgage loans. Banco Sabadell, Banco Popular, and Banco Santander are some banks offering non-citizens loans.