HEALTHPLAN MAGAZINE

Whether you're a homeowner here in Spain or are an expat looking to get your feet on the Spanish property ladder for the first time, the signs are there that this could be the right time to invest.

Now I know that you've probably heard it all before, but in most cases the numbers don't lie. There has to be a turning point. Why not now?

Recent reports and data from the National Institute of Statistics suggest that the Spanish housing market is in fact well and truly on the mend. With 5,587 property sales recorded for the Málaga region in the first three months of 2014, which is 552 more than at the same time last year, these are strong indications that the real estate market in Spain is finally heading in the right direction.

Nationally, property sales rose by 22.8% in March, which is another very positive sign and suggests that the improvements are not confined to the Málaga region alone.

It is worth noting though that many of these transactions are being made in coastal regions where investors are seeing the best returns for their money.

Banks Need To Relax Borrowing Criteria

Although the numbers imply that now may be a good time to purchase here in Spain, it's not all plain sailing. For many the chances of purchasing here are being hampered by strict mortgage lending criteria from the Spanish lenders.

The maximum loan to value mortgage for non-residents is currently around 60%. This means that potential buyers are having to find a 40% deposit which for many is out of reach. Coupled with fees of around 15% many are seeing this as a major financial stumbling block, scuppering their chances of buying their own home in Spain.

In 2007 there was €173 billion in approved mortgages in comparison to just €26 billion in 2013. This in itself is a strong reflection on just how big an impact the financial crash of 2007 had on the Spanish property market.

Renting Long Term In Spain

Of course, buying a property in Spain doesn't have to be your first move when relocating here. Many choose to rent long term which in many cases can prove to be the best decision for those who are unsure as to whether a permanent life in Spain is for them or not.

Renting long term in Spain allows you to get a real feel for the country and its culture. It also offers you the chance to sample just how life will be, but means you don't have to commit to it 100% unless you are sure it is right for you and your family.

So what's your view on the Spanish property market?

Image courtesy of Star Villas Javea

Sources:

https://www.euroweeklynews.com/news/costa-del-sol/item/120541-malaga-property-market-recovering

http://www.propertywire.com/news/europe/spain-property-recovery-banks-201405099107.html 

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