Brexit has been in the news for several years and now that it is finally done, things aren’t drastically different. The Withdrawal Agreement signed by the British allows for a transition period until 31st December 2020.
If you live in Spain for three months or more a year you should get your documents in order. That means becoming a resident with an NIE and Spanish drivers licence. This will entitle you to free healthcare here in Spain.
The process of buying and selling property in Spain will not change for the British. It’s already the same process for non-EU nationals like the Swiss, Norwegians and Americans, so there’s no reason to expect it to be any different.
We don’t yet know whether Brexit will affect British demand for buying property in Spain, but it shouldn’t. The British were buying here long before they were in the EU and if anything, buying a home here is now more straightforward due to legislation passed in 2019.
The Spanish government encourages other nationalities to buy here and The Golden Visa is a prime example of that.
Over the last decade the Spanish property market has seen a steady increase in prices, standards and quality. Last year the price of property in Spain generally was up 3.6% in the 12 months to December 2019 according to valuation firm Tinsa. These statistics are a national average and the price of property in Spain does vary from region to region. In the Málaga province the average price of residential real estate rose by 4.6% making it a ‘sustainable’ investment.
The real thing to watch is the value of the GBP. Choosing the right time to buy when you will get the most for your money is wise. Speak to one of our property specialists who can introduce you to currency specialists who can lock in and excellent rate for you on the exchange.
If you are thinking of buying or selling your property in Spain, talk to us today. Our multilingual team have many years’ experience in dealing with EU and non EU property transactions so they can guide you through a stress free process.
Over the last decade the Spanish property market has seen a steady increase in prices, standards and quality. Last year the price of property in Spain generally was up 3.6% in the 12 months to December 2019 according to valuation firm Tinsa.
Whether you already own a home here or are considering investing, this figure is a year-on-year percentage increase, meaning home values rose by this amount compared to the same period the previous year.
Quarter 4 2019
These statistics are a national average and the price of property in Spain does vary from region to region. In the Málaga province the average price of residential real estate rose by 4.6%. This means the average price per square metre of both new and used properties in both coastal and inland areas of Málaga province stood at €1,673 by the end of 2019.
According to the Spanish National Statistics Institute (INE) data 441 (or 2.7%) more Andalusian homes were purchased in November 2019 compared to the same month in 2018.
In the month to 30th November, a total of 8,391 residential real estate transactions were made in the southern Spanish Autonomous Community of Andalucía. This number was marginally down from the 8,655 property sales registered in October, however it was a real improvement on the preceding month of September, when 7,307 homes changed hands.
As an indicator, this means that whatever is happening in the political and economical world, property in Spain continues to be a popular investment and here at Bromley Estates we have a fabulous selection of properties to suit all budgets and lifestyles. If you are a property investor, then Spain offers a steady return year on year on your investment.
Recent reports showed that Andalucia saw numbers jump during the month of August. According to new data, the summer month exceeded all expectations this year after there were 7.6 million more overnight stays in hotels compared to last year, a 4.9% growth.
There are some great places to stay other than hotels and these include properties on Airbnb and Booking.com as well as individual rentals. The number staying in other accommodation reached 2.3 million, an increase of 4.4% on August 2018.
Andalucia boasts a rich cultural heritage as well as superb beaches, top notch leisure facilities and of course the all-important climate to continually draw visitors back to the region. Junta vice president Juan Marin said it was ‘a historic month for tourism in Andalucia.’
Seven provinces stood out from the pack but it was the capital Sevilla which enjoyed the most growth, with a 9.9% year-on-year increase in overnight stays. Other provinces that swelled in visitor numbers include Cordoba, which increased by 7.5%, Granada (6.7%), Huelva (5.9%), Cadiz (4.8%), Malaga (4.4%) and Almeria (1.9%).
This is excellent news for those that have investment properties in Andalucia. There are some truly lovely resorts along the coast that are popular with a great cross section of holidaymakers. From families, to golfers and those just looking to enjoy the luxury and family friendly resorts.
If you are thinking of investing in property, then Andalucia is a great place to start. We have a superb selection of properties ranging from one and two bedroom sea view apartments to contemporary villas and even commercial properties including boutique hotels.
Property purchases by international investors increased during the first quarter of 2019 (Jan-Mar 2019) despite Brexit being on the horizon according to data on property portal Kyero. This represents an increase of 0.53% annually and an increase of 0.57% quarterly.
In Andalucia 16.10% of buyers were international with 4,380 transactions in Q1 2019. For our region the number of transactions were down by 0.16% but it was still the considerably largest region for purchases.
Nationally sales prices including new properties and resales saw an annual increase of 6.75% and a quarterly change of 1.49%. This shows the market is slowly but steadily climbing again despite political activity in Europe.
It certainly shows people’s hopes and dreams of owning a property here in Spain have not dampened and it is easy to see why. The value of what you can buy for your money here in Andalucia is still excellent. Buying off plan property offers buyers lower purchase prices in some developments which offers an excellent return on investment. Here are a selection of off-plan properties to browse.
The number of new mortgages and loans on property in Andalucia for May 2019 was 9,285, this is an annual change of +15.92% and a monthly change of +15.99%. The new legislation on mortgages that came into effect in June 2019 makes the whole application process more transparent and akin to getting a British mortgage. The acceptance criteria are based around the clients’ affordability.
Tourism is still booming here and the level of resorts people want to holiday in across Andalucia means owning a holiday rental here still pays dividends. With beautiful weather, superb golf courses and stunning beaches Spain is still the favourite of a seasoned traveller.
If you are thinking of buying property in Spain, there has never been a better time. If you have concerns over Brexit and what that will mean, remember we have been selling property to non EU nationals such as Swiss, Americans, Chinese, UAE residents and Russians for many years. Talk to one of our property specialists today who can help you find your perfect property.
Buyers Guide to securing a sound investment in Marbella & the Costa del Sol 2019.
If you’re looking for a holiday home on the Costa del Sol, now could not be a better time to buy. With interest rates still extremely low and an incredible selection of new contemporary developments to suit all budgets that have attractive payment plans of 30% over 2 years and 70% on completion the International buyers arrived in the thousands in 2018 to select the best units. In some cases we sold over 50% of our exclusive developments to our own investor data base before the official public launch. Click this link and fill out the form to be added to our mailing list for future new launches.
Most investors have a good idea of what they are looking for and for what purpose the property will serve. We have customers from far and wide looking for buy to let properties with some personal use thrown in for quality of life. Marbella has been a magnet for property investors for decades due to it’s incredible microclimate and growing infrastructure. Our job is to guide the clients to a sound investment, advising customers on properties in high demand areas with a good potential for return on investment and rental income. With over 25 years of experience in real estate on the Costa del Sol, our property specialists are experts in this field and always find a property solution for even the most discerning customer. Our team has their finger on the pulse and have firsthand knowledge of what our clients are looking for.
- The first rule of thumb in our buyers guide is to select a long standing established agency with ample experience in the region.
- Provide your agent with a clear outline of your buying preference so they can tailor make a property inspection tour to suit your needs
- If you’re not sure of what type of property would make the safest investment, book an appointment with our property specialists who can guide you through the various options.
- Understand the current real estate market in Marbella and the Costa del Sol. Click on the link to download a free up to date copy of a “ Historical growth chart for all of Spain”
Popular property searches now: Clients are still looking to Spain to buy property with a good ROI. This could be a new off-plan property or a re-sale that could be refurbished and resold for a profit. The Costa del Sol currently has a selection of new off-plan properties providing an enticing option for buyers who can wait between 6 months and 2 years for completion, depending on how the building process is developing. Many come onto the market at below market prices and offer attractive payment plans for ease of cash flow. This type of property is a good option to potentially resell at a profit or rent out as long term or holiday let so they provide an excellent property investment opportunity on the Costa del Sol. The luxury end of the market also seems to be thriving with brand new villas proving popular with international clients. Many of these villas come with excellent facilities, fabulous locations and great levels of privacy and can be customized if purchased early enough in the build process.
Investor types: We understand the different types of investors with an interest in real estate on the Costa del Sol. Our exclusive developments and resale properties generated over 11,000 individual property enquiries in 2018 alone. Our specialized team are familiar with working hard to source the ideal property for either an end user or an investment group looking for a project. Our success comes in matching buyers with property on the Costa del Sol.
Off plan versus resale property: We are often asked about whether off-plan or resale property is best. It depends entirely on an individual’s circumstances, wants and needs. Understanding our clients is what we do best so whether they are looking for a beachside property or one overlooking a marina, it may be that being walking distance to amenities takes precedence over that sea view. Looking to a main residence versus a holiday home also brings up differing considerations. We have some excellent properties at affordable prices and can match buyers to the selection that suits them best when looking for property in the Costa del Sol.
One of the main benefits is that you are buying at the current price. Experience has taught us that the price difference between buying off plan compared to buying a finished property is at least 30-35%. Some people find themselves priced out of the market if they wait until a project is completed before committing themselves. For many buyers the possibility of having to pay just a reasonably low deposit when committing and having staged payments according to construction progress enables them to get that dream Costa del Sol property which they may not be able to afford when making a one off payment. Buying off plan means they are able to secure a high value asset for a low initial capital outlay. Other advantages such as having your own input into things like the interior design, type of floor tiles, kitchens and bathrooms also make off plan attractive. When buying off plan the ‘First come, first served’ policy means you get the best choice of land plots, locations and views.
One of the major concerns for many people is that, when buying off plan, there is nothing to see. You are depending on the ‘Artist impressions’ and other marketing material that the developer has created in order to help you to decide that what you are going to buy is the right choice. However these days with refined technology most development’s renderings have been drawn up using a real time aerial image of the plot taken by a drone, we can also provide vantage point views fspecific units and in some cases 3-dimensional tours through specific unit types. The latest technology has grown the off plan market to new heights and these new contemporary properties are particularly popular with British, Dutch and Scandinavian buyers. Buying off plan has never been quite so real.
When you buy a resale property on the Costa del Sol it is already completed so you can actually see what you are buying therefore there is no risk of it not being what you expected. The surroundings are also completed and gardening is already in place and you know what your views are. In addition to the above, you get immediate benefit of your purchase by being able use the property immediately whether to live in the property yourself or by it being able to generate immediate rental returns.
The disadvantage is that you could pay a premium for a completed property as opposed to the discounted pre-construction price. You would need to obtain a mortgage to pay for the property if you do not have cash. However, we do have a collection of resale properties in high demand areas in and around Marbella and the Costa del Sol that have excellent potential to reform leading to a ROI. Some highly popular beachside resorts are full of older properties receiving full restoration projects and seemingly leading to highly profitable returns. Reports from 2018 show that newly completed contemporary apartments and villas are currently popular with British, Scandinavian and Dutch clients and yet scarce in the current market making demand exceed supply. To receive a list of Villas and apartments suitable for restoration, please enquire on this link.
It is all about speculating carefully and taking into consideration all the elements which might affect your investment in the future. The more you do so the greater the chances are of you making the right decision. Buying off plan is a good idea with clear benefits but you have to be careful where you are buying and who you are buying from. As mentioned above, this is where the assistance of a reputable agent is vital.
Legal advice regarding Brexit: This a super-hot topic right now whether it is a deal or no deal Brexit, yet anyone who is looking to buy property in Spain needs to know that for over 10 years we have been selling property on the
Costa del Sol to non-EU nationals without a hitch, and we will continue to do so. Keep abreast of what is going on and take any advice that you need. We will be updating our website blog page continuously throughout the brexit process. We have a team of lawyers willing to provide any legal information required prior to searching for a property. To have a lawyer contact you with legal advice on buying a property on the Costa del sol, please enquire here by clicking on the bold text.
Due diligence: Once the deposit has been paid on a property, also known as the reservation fee, we will notify the vendors lawyer of our clients legal representation who will request from them the necessary documentation in order to carry out the appropriate due diligence in which they will verify all relevant aspects related to the property.
This due diligence work could take a few weeks and always takes place between the reservation deposit and the signing of the private purchase contract.
The due diligence works are different depending on the property purchase: New build or Resale. Here are the main points that will be checked by your lawyer:
- Legal due diligence checklist for a Resale property in Spain
- The legal identity of the owner/the seller of the property you intend to buy
- The land registry extract with boundaries and square metres of your land.
- Check if details match: ownership, features of the property,…
- Is there a mortgage or a debt linked to the property?
- Any legal proceeding linked to the building?
- Check that the property has been granted the corresponding municipal building permit and habitation license by the Town Hall in question, and respects local urban planning rules.
- The license “Cedula de habitabilidad” (or “Licencia de ocupación”) provided by the town hall
- That the property is free from charges
- All utility invoices paid by the previous owner
- All community charges paid by the previous owner
- All previous annual real estate taxes paid by the previous owner
- Get the energy efficiency certificate from the previous owner
- Check the history of ownership of the property
Buying costs 2019: The buying costs in Spain vary from 10% to 13.5% of the purchase price, broken down as follows:
- 10% IVA (VAT) on NEW properties, 8% to 10% IVA (VAT) on re-sales depending on price category
- 1% Notary fee ( Notarization of property cost)
- 1% Legal fees ( a fee charged by your selected lawyer to conduct the * Due diligence
- 1.5% Stamp Duty Tax ( A tax charged to make all documents legally effective)
- If you should require a mortgage, you should calculate an average of 1- 1.5% cost for the set up fee of a mortgage with a local Spanish bank
For further assistance on buying a property in Spain please contact us directly.
Why Bromley Estates? Established for 10 years, with 22 years’ expertise in both general real estate and as the Costa del Sol’s leading development promote, you can rest assured we are best placed to find the best property options to fulfil your real estate needs. Prices are rising as the property market in the Costa del Sol blossoms with sophisticated developments that could rival any in the world. If you are looking for your dream property in the Costa del Sol in 2019 then Bromley Estates are the only real estate agent in Marbella to talk to.
Spain and particularly Andalucia has drawn visitors for decades, enticed by a healthy outdoors lifestyle you can’t match elsewhere. This European hotspot has the perfect climate for golfers, cyclists, horse-riders and water sports enthusiasts with superb beaches that are lined with chiringuitos. It is the year-round pleasant climate where winters don’t usually drop below 15 degrees that make it so agreeable. There are so many resorts to choose from along the coastline and of course inland.
If you do one thing in 2019, make it the year you buy your Spanish dream home. Whether that is a 2-bed apartment used for holiday rentals outside of your own holiday time, or indeed whether you are looking to relocate here, the team at Bromley Estates has many years’ experience in advising clients on areas and types of property to consider.
Off plan property can be particularly attractive as reserving early means you can often personalise aspects of your new purchase. Payment terms with off-plan are also beneficial as you pay in stages. If you are looking for something more rustic and traditional, then a finca in the countryside or a luxury villa with a pool could be on the cards. We have a great selection of properties to suit differing tastes and budgets.
Don’t be put off by Brexit, as people from non EU countries have been buying here for many years and will continue to do so. If it is you dream to own a Spanish property then let us help you make that dream come true in 2019.