Which are the best places to buy property in Spain?
Even if you have chosen Spain as your new homeland, there is a number of aspects that will influence the final price you pay. For example, choosing the right location for a house is a key to preserving and raising its value. As a thumb rule, the best places to buy property in Spain are the ones where prices haven’t peaked yet, while the local economy is still growing. So if at some stage you decided to resell it, you should still be able to earn money with it. There is certainly a part of intuition and observation in finding a good dea. Besides, every buyer will have different preferences.
If we are looking for the cheapest places to buy property in Spain, inland cities in Castilla la Mancha and Castilla Leon have the lowest prices. However, most investors choose to buy in coastal areas, due to the great activity during the summer months and a vast number of entertainment facilities. The three most popular areas to buy in Spain are Costa del Sol, Costa de la Luz and Costa Blanca. Of the three, the fastest growing area is the Costa del Sol, which comprises Malaga, Marbella, Fuengirola, Benalmadena, Nerja and many more charming villages and smaller cities along the sunny coast. In contrast, the most expensive regions are currently Madrid, the Balearic Islands (including popular Mallorca and Ibiza) and the Basque Country up in the north. Although located further from the continent, the Canary Islands continue to offer affordable prices, since the salaries in this region are slightly under the average of the country.
In case you would like to check the current average price of properties in different parts of Spain, which are constantly changing we suggest having a look at the following database:
How to determine the value of a property in Spain
Before signing the contract on a new house, it is advisable to have a home inspector check the value of the property. In his report, the inspector will review and take into account a variety os aspects, including:
- The type of building, e.g. a flat, a standalone house, a luxury villa or a loft.
- The surrounding areas and facilities, such as supermarkets, means of transport, green areas, schools, health centres and public services.
- The size, quality and thermal insulation of the construction
- The year it was built
- The level of noise and safety on the streets of the neighbourhood
- The distance to the city centre; if it’s a rural area, the distance to The nearest village
- The state of the building: has it been recently renovated? has it passed a technical test? what is the current state of the facade?
- Is space distributed in a functional way? How easy is it to use?
- If it’s near the coastline or if it has a swimming-pool.
- The quality of the views from the building.
- The orientation of the building and the amount of light in the rooms.
Based on this list, you can review the properties you visit and find the best fit for your needs. The more requirements it meets, the easier will be to resell the property and the better the investment. Once you have found a place that interests you, it will be time to dive into the extensive paperwork and applicable taxes. For this, we suggest reading our checklist to prepare for buying property in Spain.
For further enquiries and specific requests, feel free to reach to the Legal & Tax Help team through our contact form. We are a group of English speaking lawyers based in Malaga, Costa del Sol.