Rayos de sol
Rayos de sol
Rayos de sol

Investing in Spanish real estate: 5 reasons why this is a good idea

Feb 24, 2023

In this blog we would like to inform you about investing in Spanish real estate. Where years ago it was still worthwhile to put your money in a savings account, that is no longer the case. Among other things, still low interest rates and inflation ensure that you can invest your money better than having it in a savings account.

You could of course choose to invest your money in cryptocurrencies, for example, an option that has become increasingly popular in recent years. The disadvantage of this, however, is that it is not tangible or stable in value. This means that there is more risk involved than other investment opportunities.

An example of a better choice is investing in Spanish real estate. But why is that such a good choice? In this article we share a number of reasons with you to start looking for your home under the Spanish sun today.

Reason 1: The deteriorating housing market in the Netherlands and Belgium

Recent figures on the price development of owner-occupied homes in the Netherlands, for example (source: CBS price development of owner-occupied homes in January), show that owner-occupied homes were only 1.1 percent more expensive in January 2023 than in the previous year. In December 2022, this increase compared to a year earlier was still 2.7% and this trend has been declining for months. If we look at the graph you can find in the CBS article, you will conclude, like many, that it is only a matter of months before prices will fall. Even if we look at the Flemish real estate market, the time of price increases seems to be over.

In addition, mortgage interest has risen, which means that it is more difficult to get a mortgage and the monthly costs of a new mortgage are considerably higher. This means that many potential home buyers have to make do with a lower budget and home owners prefer to leave the mortgage as it is (and therefore do not buy a new home). Many investors, on the other hand, are now selling their properties in Belgium and the Netherlands; not only because of the lower price increases, but certainly also because of the strict rules regarding rental and the environment.

These statistics make it less attractive to buy a home in the Netherlands or Belgium. Property prices are certainly not rising for the time being, which means that the chance of selling with surplus value is minimal. In fact; a possible future loss is certainly not inconceivable for homes purchased now. So this is a good reason to invest in property in Spain instead.

Reason 2: Rising property prices in Spain

The Spanish housing market was hit hard by the crisis at the beginning of this century, but has since stabilized. In fact, house prices are only increasing! Since Corona, the increase has been significant and this is a trend that is expected to continue in the coming years.

This means that it is a good decision to invest in property in Spain right now. It is of course important to make a well-considered choice. Therefore, think carefully about where you want to buy the property and also what type of property suits you.

Our working area is the Costa Blanca and Costa Cálida, for several reasons. The climate is good all year round, the area is easily accessible from both the Netherlands and Belgium and there are many places that are not yet extremely touristy, something that is the case in other areas in Spain.

Reason 3: The rental possibilities

It has probably not escaped your notice: the possibilities with regard to renting out a property on the Costa Blanca and Costa Cálida are endless!

In recent years, platforms such as Airbnb have grown enormously, where you can offer your home or part of your home for holiday rental. You don't even have to be in Spain for this, because there are numerous companies that can arrange matters such as the key transfer and cleaning of your home for you. You can read more about this here.

In addition, you can of course choose to rent out your Spanish home for a longer period of time. The advantage of this is that you have a fixed extra income per month, with which you can also cover any mortgage costs. In addition, you do not have to spend time and money on changing guests, because there are permanent landlords.

Whichever rental option you choose, this is a great way to recoup some of your investment. Moreover, you can also decide to rent out your home for only part of the year, and then use it yourself for the rest of the time. In short, investing in a holiday home in Spain has many advantages!

Reason 4: Your own home under the sun

We hear you thinking: but what if I don't want to rent out my house, but want to live in it myself?! This is of course also a great choice, and a dream that many of our customers have.

Every year, thousands of Dutch and Belgians choose to invest in Spanish real estate, making their dream of living under the Spanish sun come true. Because how wonderful is it when you open the curtains in the morning and see the beautiful countryside or the sea? We can think of worse ways to wake up!

Even if you do not immediately plan to emigrate to Spain, your own home in Spain is a great investment for the long term, because house prices will most likely only increase in the coming years. Especially if you make a strategic choice, you will get a good return. For example, homes close to the sea will always remain popular.

Moreover, in Spain you get a lot more value for your money than in the Netherlands or Belgium. House prices are relatively low in Spain, so you will be surprised by the possibilities within your budget.

Reason 5: A change in property transfer tax policy in the Netherlands

Another reason to invest in Spanish real estate is the change in property transfer tax policy in the Netherlands.

Where the percentage used to be 2%, this has now increased to 8% when you purchase a home that you will not be living in yourself. This means that you pay this percentage when you want to invest in real estate. These amounts can add up considerably, which makes it less attractive to purchase an additional home in the Netherlands.

In short: it is the perfect time to invest in Spanish real estate!

As you have read, it is a great time to invest in Spanish property. However, it is important that you are well informed by experts who know what they are talking about.

We at Rayos de Sol have years of experience in guiding Dutch and Belgians who want to purchase their home on the Costa Blanca or Costa Cálida. We are happy to look at your wishes and the associated options together with you.

Contact us for a no-obligation introductory meeting. Get started? Start your search and we will get back to you quickly with a first selection.

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