Despite global economic and political uncertainties, the real estate sector in Spain and especially the Mediterranean coast is in good health and good prospects for both investors and residents.
We can say with total certainty that at present all the news that warn about a cooling of the economy does not correspond to the reality that real estate activity is experiencing at the moment throughout the Spanish geography.
International citizens and investors are attracted by all the benefits and security that our country offers. Gone are the years of the real estate bubble, which was characterized by overcrowded buildings and questionable quality, now the trend is to create a sustainable urbanism that is in line with respect for the environment creating new spaces to live, more efficient and functional .
This optimism and current good work in the real estate sector is linked to an apparent pessimism that the media speaks daily and that is caused by the social, political and economic changes that are transforming society in recent times. All these changes in the specific case of the real estate market have led to the emergence of new business avenues, such as tourist rentals, which, thanks to the emergence of platforms such as Airbnb or Booking, have boosted the real estate sector, being very attractive for investors in areas of the Mediterranean coast and large cities.
Another important factor is the facilities and the cost of financing for the acquisition of a home that all banks and new mortgage financing operators are offering. At this time, the cost of financing is the lowest that has ever existed in our country, with interest rates that range between 1% and 2,5%, we can affirm without error that now the acquisition of a home is going to be much cheaper than at other times; taking into account all the interest that we are going to pay throughout the mortgage period.
Finally, the good performance of the rental market is a focus of attraction for many buyers, generally international, who seek returns of 5% or 6% per year and that are currently occurring in the Spanish market and especially on the coast. Mediterranean. With returns of 5% or 6% and a financing cost of 1% -2%, which leaves a net return of 4% per year, so it is profitable for buyers to request financing to carry out their real estate investments.
