Why Now Is The Right Time To Buy
As September dawns it becomes apparent that this summer season has, so far, been a highly prosperous one for the holiday industry throughout Spain and its islands. The National Statistics Institute reported a 12% rise in visitors to the whole of Spain compared with the same period in 2016. In total some 36.3 million people entered the country’s airports and ports. Tourists from the UK alone, made up 8.6 million visitors, representing a rise of over 9%, whilst 5.5 million were from Germany; a 10% hike over the same period in 2016. The same statistics reported an 8.5% increase in foreign tourists using privately rented accommodation.
For the first time, the rise in the number of tourists visiting Spain and staying in private homes has overtaken the increase of guests using official holiday hotels, villas and apartment complexes. The Balearic Islands in particular have seen a surge in demand for rental property outside the traditional tourism sector and new licensing laws, introduced in July this year, have proved less robust than originally feared in their sanctioning of private holiday rentals, effectively allowing owners to let properties on a short term basis, providing certain criteria are met.
The real estate market is also flourishing. The Sales and Marketing Director of Taylor Wimpey construction in Spain, Marc Pritchard, was reported to have said: “A decade on from the crisis and Spain’s property market is not only back on its feet but thriving. The appeal of owning a second property in Spain, be it to enjoy holidays with friends and family or to relocate to, has endured and I have no doubt that the country will welcome another record year of international investment”. During the final three months of any year the demographic of investors in the Balearic Islands tends to alter as locals are keen to secure property with cash earned from the busy summer season, thus driving up the value of property. For these reasons, September is a good time for foreign investors to buy.
Preparation of the property is simpler over the winter when local tradesmen are freely available and the new homeowner can ensure that any legal requirements are met in ample time for private rental during the lucrative months of the subsequent summer season. May 2017 saw a year-on-year increase in UK visitors to Mallorca of some 20% and a similar hike in demand for accommodation from other nationalities. The Spanish property market looks set to enjoy its eighth year of record growth and the general economic feel is one of stability and optimism for the future. Overseas buyers invested 888 million euros in Spanish properties during the first half of 2017, smashing last year’s record of 330 million euros for the same period, with total investment for the year expected to exceed 1 billion euros.
UK investors, in particular, would be advised to buy now in order to gain a foothold on the currently open and potentially lucrative market.