Big Money Going Into Spanish Real Estate

by Admin on April 8, 2014

Alicante Spain Beach Real EstateSome of my buyers have asked if this is a good time to get back into Spanish real estate. It is definitely a great time to get back into Spanish real estate. Is it the perfect time? No. The perfect time was 2012 when the market officially bottomed out. I tell my clients to never worry about the perfect time because it is impossible to predict. The perfect time only exist after the fact, when a person can view with hindsight 20/20 vision.
I predict that the big gains are going to happen long term in the coastal areas where the British and Northern Europeans buy their holiday properties. The main coastal areas that will appreciate during this time with be the areas of the Costa Brava North and Costa Brava South. The Costa Del Sol will also see appreciation. However, it won’t see as much as the Brava’s because of all the negative press, shaddy dealings, and bankruptcies of developments that occurred when the bubble burst in 2007/2008.
No matter what, people always want to live in nice, warm places near the ocean. There’s only so much land on the Southeast coast of Spain that can be developed. As the Spain economy slowly comes back, the property values will appreciate in parallel.
So where’s this big money coming from? You are seeing with some of the richest men in the world. George Soros and John Paulson, international investors, have invested 92 million Euros in a Spanish Real Estate Investment Trust (REIT) called Hispania Activos. Hispania will be targeting key Spanish cities for growth. They are expecting double digit returns over the next 6 years. They have followed the second richest man in the world’s lead, Mr. Bill Gates. Gates invested in a Spanish construction company Fomento de Construcciones y Contratas (FCC) in October of last year. He has invested 113.5 million Euros in the firm.
If big money is investing in Spanish real estate, don’t you think it is time to get back in the market? I think so. Feel free to take a look at the current real estate markets of the Costa Brava North and Costa Brava South. You’ll be surprised at the value there is in the market.

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