PROPERTY SEARCH
A crash course in Spanish holiday home buying 2024
There are still opportunities for buying an affordable holiday home in Spain if you know where to find them
Image: Johan Mouchet / Unsplash
Spain's property market is riding the winds of change. The country recorded a deficit of 350,000 homes last year, and the market has been relatively stagnant. A poor economy and the reduction in tourist footfall have contributed to this. However, Spain is on the cusp of change. Bargains are still available, but not for long.
Spanish property prices
What has been holding Spain's property market back is access to finance. If residents of the country cannot get the money to spend on a property, then the housing market stops being fluid. People in Spain must also pay a huge 30% of their income towards mortgage payments, which many cannot afford.
It has only been in the past year that prices have risen. Year-on-year, house prices have surged by 8.7 percent, making a leap of 2% in the last three months. All provincial capital cities went up in price, excluding Huesca. There are however still cheap homes to be found.
Are bargain homes still available?
Image: Drew Dizzy Graham / Unsplash
Luckily, there are still plenty of bargain properties in Spain. Many homes were built around 2018 and were not bought, so there has been overstock for some time. Prices are rising in cities, but coastal towns still have low-cost homes available. Many are both good quality and close to resorts. Properties on the Costa del Sol in the town of Torrox can still be found for as little as $94,600. This is for a two-bedroom apartment that is just 40 minutes drive to the airport.
Other low-cost spots, according to the Manchester Evening News, include Torrevieja near Alicante. Despite prices in Alicante rising 15.9 percent over the last year, this spot is a gem. A two-bedroom apartment close to the beach can cost around $70,676 if you don't mind one that needs a little renovation work. Costa Blanca and Costa Brava are two other low-cost areas.
What to consider when buying a house in Spain
The first is to make sure you have all of the money for the property, including any renovation costs and legal fees, before you start. You may have to sell some assets in the United Kingdom to make up these funds, but you will undoubtedly get more for your money in Spain. There are UK sites like We Buy Any Home that will let you sell your properties much quicker than the standard estate agent route. They offer fast turnaround times and dedicated closing dates. If you have a rental property or inheritance property you want to sell quickly to capitalise on market trends in Spain, it could be an option.
Next, you should get a dedicated property lawyer. There are a few things you must have to buy a property in Spain. This includes a Número de Identificación del Extranjero (NIE), which is needed to carry out any transactions. You will also need a bank account and tax representative, which they can arrange for you.
As a buyer, you will be responsible for many of the fees. These can include a property transfer tax of 6–10%. Notary, title deeds, and land registry will cost around 1–2.5%. Legal fees will be between 1–2%.
Once you have this in place, the fun part begins of looking at Spanish property. The bargain property days are coming to an end, but they are still out there. Dig in, move fast, and you should soon have a property that is right for you.
