|
€100,000
|
10 Year
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12 Year
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14 Year
|
16 Year
|
18 Year
|
20 Year
|
|---|---|---|---|---|---|---|
| Rates | 120 months | 144 months | 168 months | 192 months | 216 months | 240 months |
| 1.50% | -€898 | -€759 | -€660 | -€586 | -€529 | -€483 |
| 2.00% | -€920 | -€782 | -€683 | -€609 | -€552 | -€506 |
| 2.50% | -€943 | -€805 | -€706 | -€632 | -€575 | -€530 |
| 3.00% | -€966 | -€828 | -€730 | -€656 | -€600 | -€555 |
| 3.50% | -€989 | -€851 | -€754 | -€681 | -€625 | -€580 |
| 4.00% | -€1,012 | -€876 | -€778 | -€706 | -€650 | -€606 |
The post What are the best Spanish mortgage rates? September 2024 update appeared first on How to buy in Spain.
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Reading time 17 minutes. Use our table of content for a quick read.Last Updated on 19/09/2024 by vishal
Click on any flag to get an automatic translation from Google Translate. Some news could have an original translation here: News Nouvelles Nieuws Noticias Nachrichten
What are the best Spanish mortgage rates?
Here is our September 2024 update with the latest data available
Leveraging our expansive network of local partners, we secure Spain’s most favourable mortgage rates for those looking to finance their homes. Throughout much of 2022, we observed significant discounts on mortgage rates as inflation surged while long-term rates remained subdued, thanks to the European Central Bank’s (ECB) efforts. Now, zoom forward to mid-2024, inflation is more controlled (2.2% as of August 2024 – back to the low of the range over the last 3 years) and it looks like economies are suffering from the restricted monetary policy of the ECB. In this context, some market experts expect the central bank to lower rates. We can already see this impacting mortgage conditions and long-term rates.
To stay informed about the latest Spanish mortgage rate trends, it’s crucial to consult real-time data from the most recent mortgages issued in Spain. This insight allows you to understand the most competitive rates currently available. Foreigners must note that rates may vary since their assets are primarily overseas.
We’ve built the largest database to monitor fluctuations in this sector, enabling us to generate dynamic, engaging charts. The “Instituto Nacional de Estadísticas” (INE) has recently published the mortgage statistics for Spain as of June 2024, providing a clear view of the current market rates.
Thanks to our network of local partners, we get the best mortgage rates in Spain if you want to finance your home in Spain. Take 30 seconds to complete this quick form to get the best Spanish mortgage rates.
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Spanish mortgage rates: our 2 minutes video
Would you like to watch this video in your language? Click at the bottom right of the video on “cc” to get subtitles in your language.
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What are the current mortgage rates in Spain?
Current market conditions
- The average mortgage has an interest rate of 3.26% (vs 3.32% end of December 2023)
- The lowest rate ever was 2.44% reached in September 2020.
- The average rate for variable-rate mortgages is 3.06% (vs 3.07% end of December 2023)
- The average rate for fixed-rate mortgages is 3.44% (vs 3.54% end of December 2023)
Check the evolution of the mortgage rates (average, fixed and variable ) over the last years on our interactive chart (browse with the mouse to check data)
What are the best mortgage rates for our customers?
As of September 2024, our partner can get very good conditions for mortgages for our non-resident buyers:
- Fixed rates: from 2.85%
- Mixed solution: from 2.50% fixed for 5 years, after Euribor + 0.75%
- Variable rates: from 2.50% fixed for 1 year, after Euribor + 0.75%
And of course, they don’t stop with foreigners, our partner gets very competitive mortgage rates for Spaniards:
- Fixed rates: from 2.52% (if taking other products like insurance from the bank for instance,…)
- Mixed solution: from 1.50% fixed for 5 years, after Euribor + 0.60%
- Variable rates: from 1.35% fixed for 1 year, after Euribor + 0.25%
So, don’t hesitate to fill out this quick form if you want a free quote from our partner. They are specialized in working with foreigners looking for a mortgage in Spain. Please note that to get the best rates, banks add some conditions as in your home country.
Essential information on Spanish Mortgages for non-residents
As a non-resident, you can take a mortgage to finance your second home or your investment. Of course, as your assets won’t be based in Spain, the bank will need warranties and won’t allow a loan to value more than 70% in general. The Loan to value is the amount of mortgage you can get divided by the value of your property before tax, but this % is only for good inquiry. Don’t hesitate to ask for a free quote from our mortgage broker, he knows perfectly how it works and which Spanish banks love foreigners.
Don’t miss our new detailed article on that subject: Mortgage rates in Spain for non-residents: our detailed guide.
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Calculate the cost of your Spanish mortgage
Check our ultimate Spanish mortgage calculator.
To help you out, we have created an easy-to-use table of the monthly repayments depending on the amount you want to take for a mortgage. If you want to go deeper into details, use our calculator to fine-tune your mortgage to your situation and you will find out what would be your monthly payments, mortgage schedule,…
What is the cost of a €100,000 mortgage over 10 years?
If you want to go into the details, here is a calculation example we did:
As you will see, if you take a mortgage of €100,000 for 10 years with a rate of 3.5%, your monthly payment to reimburse your mortgage will be €989.
Thanks to our Spanish mortgage rate calculator, you can change any number and calculate what would be your situation.
Summary table of your monthly reimbursements for a €100.000 Mortgage
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Buy to let in Spain?
If you are about to invest in Spain, it is always interesting to compare the financing conditions with your returns prospects, check our last article on that subject:
What return will you make on your Spanish Property investment in 2023? If you see your property investment in Spain as an investment, adding some financing (without being crazy) will increase your return and decrease your costs.
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Should I take a mortgage with fixed or variable rates?
Fixed-rate mortgages and variable-rate mortgages are the two main categories of mortgages you can pick. Of course, there are many other possibilities between the two.
Why would you take a fixed-rate mortgage?
A fixed-rate mortgage has the advantage that whatever the market conditions will do in the future, it will remain the same. To get that advantage, you will on average pay a higher rate than on a variable-rate mortgage, for instance, as of June 2024, mortgages with variable rates were issued at rates of 3.06% while those with fixed rates were issued with 3.44% for an average length of 24 years.
Why would you take a mortgage with a variable rate?
It could be because it is less expensive than a mortgage with fixed rates (monthly instalments) and because you don’t see inflation or rates going higher or because you are comfortable financially and can face higher rates in the future. Another reason for variable rates to cost less than fixed rates is that for the banks issuing them, it matches their sources of funds (savings accounts) and they take less risks by issuing them rather than fixed rates mortgages.
To sum up, if you want safety, take a fixed-rate mortgage. If you see inflation spiking or interest rates going higher (in general due to a strong economy) you could as well go for a fixed-rate mortgage. Of course, the longer your mortgage is the higher your risk will be.
Don’t hesitate to ask your Spanish mortgage broker for pricing with both and compare both offers.Inflation update since the start of 2023
After the big inflation spike of 2022 around the world and in Spain, inflation in Spain is moderating finally to +2.2% as of August 2024. We note that since 2022, the trend changed clearly and the majority of mortgages are issued with fixed rates. We kept telling you in 2022, to lock in those crazy long-term rates levels… remember our chart:
Maybe some people see a real risk of inflation staying high, which in turn should increase the variable rates. Since June 2023, we still see the fixed rates as leading the mortgage initiations but we are going back towards a 50/50 split between variable and fixed rates. As of mid-2024, with long-term rates decreasing and with inflation decreasing, we see that fixed rates are back on the top of the list. Check our interactive chart on that.
Check the evolution of the percentage of mortgages with fixed and variable rates with the inflation rate
We wrote a completely new article on that subject: “Fixed or variable mortgage for my Spanish home?“
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How do you secure the best mortgage rates in Spain?
You are about to buy a nice second home in Spain. Do you want to know how to get the best mortgage rates on your Spanish property? Even as a foreigner?
Check our detailed paper on this subject and follow the link or listen to our 2 minutes video on how to apply for your mortgage up to the end and get all our tips to get the best rates:
You have to ask yourself this question: What is the ideal mortgage customer for a bank? The bank will take a risk, the risk of not being repaid and in this case, the bank will need to take legal action to control your property and will sell it afterwards on the market. We saw what happened after the financial crisis of 2008: thousands of properties finished in the hands of the banks as owners couldn’t pay their mortgages.
The ideal mortgage customer for a Spanish bank
- has a good professional profile: he is employed and has a stable nice income stream,
- has a good credit report, he does not have too much debt vs. his income,
- can afford to have debts: his debt to income ratio is under 35 %, which means that his monthly net income is 3 times bigger than his monthly debt repayments,
- the property has a good resale value:
- the property price is correct vs. the market
- there is demand in the market for such a property
- is coming from OECD countries, as you know, with anti-laundering laws that came into effect all over Europe, it is challenging for banks to give a loan to residents of certain countries. Of course, if you are a resident of the European Union, it will be the easiest.
How to get the best rates as a non-resident?
Get a free mortgage quote
At howtobuyinSpain.com, you are in good hands, we work with a mortgage broker who asks for the best mortgage prices for all the Spanish banks. Depending on your profile, certain banks will be more aggressive and others won’t be. Our mortgage partner knows that and they will go to the best bank or will ask for quotes from many Spanish banks to get you the best quote. They work with all the biggest Spanish banks: BBVA, Bankia, Santander,… Get a free mortgage quote from our partner.
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Spanish mortgages rates: Market Insights and trends
381,560 mortgages issued in Spain over 2023
2022 was a record year for mortgage rates in Spain: 464,000 credits were issued. Even stronger than 2021 which was already strong. So, in 2023, with the rise of interest rates the number of mortgages decreased by 18% while at the same time, the number of transactions decreased by 19% (from 734,000 transactions in 2022 to 596,000 transactions in 2023).
A healthy market: Only 64% of properties are bought with a mortgage (vs 63% in 2022). In our opinion, the market is not over-leveraged. Have a quick look at the table for statistics since 2015. Yes, we are far from the high-leverage situation we had in 2007.
Historical evolution of Spanish mortgage rates & useful information
- The average mortgage duration is 24 years
- Only 6% of issued mortgages in Spain are bigger than 80% of the property value.
- 46% have variable interest rates (vs 35% in December 2022)
- 54% have fixed interest rates (vs 65% in December 2022)
- The average amount issued per mortgage is €140,451.
Check the evolution of the average amount issued per mortgage over the last year in Spain in our interactive chart
- How much leverage is given by banks? What is the average Loan to Value in Spain? (if your property value is 100% how big will your mortgage be?) The quick answer is 63%.
- 24,927 mortgages were issued -17% vs last year.
- 3.5 € Bn of mortgages issued for housing in December 2023, -19% vs last year.
Last but not least, it is always interesting to know the long-term rates and the Euribor, as those are the rates at which Spanish banks get financed. As you can see both short-term rates and long-term rates are exploding since the start of 2022.
- The average mortgage duration is 24 years
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Resources on Spanish mortgage rates
Discover the best new build projects in Spain
Check out our latest articles on Spansih mortgage rates
- Spanish mortgages for non residents: our detailed guide.
- Your definitive guide to your Spanish mortgage
- Our ultimate mortgage calculator
- Is it easy to get a Spanish mortgage as a foreigner in a post-Covid-19 world?
- How do I choose between fixed and variable rates for a mortgage?
All our interactive charts of this article are available in a downloadable format
Loan to value given on mortgages in Spain
Spanish mortgages with the best mortgage rate in Spain and loan value higher than 80%.
Current financing rates for Spanish banks
Average Spanish mortgage sizes in 2024
Spanish mortgage rates for non-residents vs properties sold in Spain for each year
Spanish mortgage rates: comparison between variable and fixed rates
Best Spanish mortgage rates in March 2024
Average Spanish mortgage length in years.
FAQ Spanish mortgage rates
How much deposit do I need for a Spanish mortgage?
For your second residence and as a non-fiscal resident, a bank will finance no more than 70 % of the value of your property. This means that you would need to invest at least 45% of the property value from your assets.
What is the interest rate in Spain?
As of December 2023, the average mortgage has an interest rate of 3.32%. The lowest rate ever was 2.44%, very close to the current level! The average mortgage duration is 24 years 46% have variable interest rates 54% have fixed interest rates. The average rate for variable-rate mortgages is 3.07%, The average rate for fixed-rate mortgages is 3.54%. Read our dedicated article on that subject for more recent data.
Can foreigners get a mortgage in Spain?
Yes, foreigners can get a mortgage up to 70% of the Value of a property.
Can I get a Spanish mortgage?
It is very easy to get a mortgage in Spain. What are the documents requested? Your Passport / ID for all the applicants Your NIE: “Número de identificación fiscal para extranjeros” or Foreign Resident’s Tax Number. How do you get your NIE in Spain? What do you need to get it? Why do you need it? Last 3 paychecks with the contract of employment Proof of income/Contract A view of your assets and debts If it’s a new building: the “Deed for the new building” The private sale-purchase contract If you have a mortgage at home, land registry information on the property and the mortgage If pensioners: Official proof of annual income.
Here are the statistics for earlier years:
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The Spanish mortgage rates situation for December 2021
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- Average mortgage has an interest rate of 2.53%
- The lowest rate ever was 2.44% reached in Nov 2020!
- The average mortgage duration is 24 years
- 32% have variable interest rates
- 68% have fixed interest rates
- The average rate for variable rate mortgages is 2.08%,
- The average rate for fixed-rate mortgages is 2.8%,
- The average amount issued per mortgage is €145,500: an increase of 1.9% vs last year.
- 32,905 mortgages were issued +23% vs last year.
- 4,8 € Bn of mortgages issued for housing in December 2021, +32% vs last year.
The top 3 regions with the biggest increases for the number of mortgages issued (Monthly):
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- Aragon, +33% to 1.159 mortgages
- Extremadura, +29% to 683 mortgages
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The top region in terms of amounts of mortgages issued (Annual)
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- Balears, 211m€, +116%
- La Rioja, 19m€, +77%
- Aragon, 169m€, +70%
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The Spanish mortgage rates situation for October 2021
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- Average mortgage has an interest rate of 2.48%
- The lowest rate ever was 2.44% reached in Nov 2020!
- The average mortgage duration is 24 years
- 33% have variable interest rates
- 67% have fixed interest rates
- The average rate for variable rate mortgages is 2.11%,
- The average rate for fixed-rate mortgages is 2.7%,
- The average amount issued per mortgage is €137,900: an increase of 1.9% vs last year.
- 33,105 mortgages were issued +67% vs last year.
- 4,6 € Bn of mortgages issued for housing in August 2021, +70% vs last year.
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The top 3 regions with the biggest increases for the number of mortgages issued (Monthly):
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- Navarra, +77% to 510 mortgages
- Murcia, +7% to 1,099 mortgages
- Andalusia, +2% to 6,589 mortgages
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The top region in terms of amounts of mortgages issued (Annual)
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- Madrid, 1.2bn€, +89%
- Andalusia, 793m€, +89%
- Catalonia, 863m€, +87%
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The Spanish mortgage rates situation for February 2021
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- Average mortgage has an interest rate of 2.49%
- The lowest rate ever was 2.44% reached in Nov 2020!
- The average mortgage duration is 24 years
- 47.3% have variable interest rates
- 52.7% have fixed interest rates
- The average rate for variable rate mortgages is 2.16%,
- The average rate for fixed-rate mortgages is 2.88%,
- The average amount issued per mortgage is €131,380: an decrease of 13.8% vs last year.
- 31,647 mortgages were issued -23.1% vs last year.
- 4,1 € Bn of mortgages issued for housing in February 2021, -29.9% vs last year.
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The top 3 regions with the biggest increases for the number of mortgages issued (Monthly):
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- Murcia, +45% to 1007 mortgages
- La Rioja, +40% to 215 mortgages
- Valencian Community, +24% to 3600 mortgages
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The top region in terms of amounts of mortgages issued (Annual)
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- Navarra, 54m€, +19%
- La Rioja, 18m€, +16%
- Gallicia, 116m€, +13%
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The Spanish mortgage rates situation for January 2021
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- Average mortgage has an interest rate of 2.47%
- The lowest rate ever was 2.44% reached in Nov 2020!
- The average mortgage duration is 24 years
- 48.8% have variable interest rates
- 51.2% have fixed interest rates
- The average rate for variable rate mortgages is 2.17%,
- The average rate for fixed-rate mortgages is 2.81%,
- The average amount issued per mortgage is €129,003: an increase of 13.5% vs last year.
- 27,518 mortgages were issued -31.6% vs last year.
- 3,5 € Bn of mortgages issued for housing in January 2021, -22.4% vs last year.
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The top 3 regions with the biggest increases for the number of mortgages issued (Monthly):
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- Navarra, +63% to 458 mortgages
- Balears, +27% to 643 mortgages
- La Rioja, +24.4% to 153 mortgages
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The top region in terms of amounts of mortgages issued (Annual)
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- Cantabria, 40m€, +0%
- Catalonia, 758m€, -7%
- Castilla y Leon, 126m€, -9%
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The Spanish mortgage rates situation for December 2020
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- Average mortgage has an interest rate of 2.53%
- The lowest rate ever was 2.44% reached in Nov 2020!
- The average mortgage duration is 24 years
- 51.6% have variable interest rates
- 48.4% have fixed interest rates
- The average rate for variable rate mortgages is 2.20%,
- The average rate for fixed-rate mortgages is 2.97%,
- The average amount issued per mortgage is €135,658: an increase of 9.2% vs last year.
- 26,128 mortgages were issued -14.8% vs last year.
- 3,5 € Bn of mortgages issued for housing in December 2020, -7% vs last year.
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The top 3 regions with the biggest increases for the number of mortgages issued (Monthly):
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- Cantabria, +9.3% to 354 mortgages
- Extremadura, +4.8% to 551 mortgages
- Aragon, +0.2% to 862 mortgages
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The top region in terms of amounts of mortgages issued (Annual)
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- Aragon, 111m€, +62%
- Castilla y Leon, 118m€, + 38%
- Galicia, 123m€, +34%
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The Spanish mortgage rates situation for November 2020
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- Average mortgage has an interest rate of 2.45%
- The lowest rate ever was 2.44% reached in Nov 2020!
- The average mortgage duration is 24 years
- 52.6% have variable interest rates
- 47.4% have fixed interest rates
- The average rate for variable rate mortgages is 2.05%,
- The average rate for fixed-rate mortgages is 2.86%,
- The average amount issued per mortgage is €136,676: an increase of 5.5% vs last year.
- 28,756 mortgages were issued +2.4% vs last year.
- 3,9 € Bn of mortgages issued for housing inNovember 2020, +3% vs last year.
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The top 3 regions with the biggest increases for the number of mortgages issued (Monthly):
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- Pais Vasco, +19% to 1729 mortgages
- Cantabria, +16% to 324 mortgages
- Catalonia, +15% to 4711 mortgages
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The top region in terms of amounts of mortgages issued (Annual)
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- Castilla – La Mancha, 115m€, +32%
- Aragon, 97m€, +31%
- Galicia, 104m€, +21%
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The Spanish mortgage rates situation for October 2020
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- Average mortgage has an interest rate of 2.47%
- The lowest rate ever was 2.44% reached in Nov 2020!
- The average mortgage duration is 25 years
- 51.1% have variable interest rates
- 48.9% have fixed interest rates
- The average rate for variable rate mortgages is 2.19%,
- The average rate for fixed-rate mortgages is 2.85%,
- The average amount issued per mortgage is €134,900: an increase of 4.6% vs last year.
- 28,248 mortgages were issued -5.9% vs last year.
- 3,8 € Bn of mortgages issued for housing in October 2020, -1.6% vs last year.
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The top 3 regions with the biggest increases for the number of mortgages issued (Monthly):
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- Castilla y Leon, +28% to 1226 mortgages
- La Rioja, +26% to 179 mortgages
- Navarra, +21% to 332 mortgages
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The top region in terms of amounts of mortgages issued (Annual)
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- Extremadura, 40m€, +29%
- Aragon, 93m€, +23%
- Asturias, 46m€, +19%
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The Spanish mortgage rates situation for September 2020
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- Average mortgage has an interest rate of 2.44%
- The lowest rate ever was 2.44% reached in Nov 2019!
- The average mortgage duration is 24 years
- 51.5% have variable interest rates
- 48.5% have fixed interest rates
- The average rate for variable rate mortgages is 2.12%,
- The average rate for fixed-rate mortgages is 2.84%,
- The average amount issued per mortgage is €135,035: a decrease of 1% vs last year.
- 26,878 mortgages were issued 18.4% vs last year.
- 3,6 € Bn of mortgages issued for housing in September 2020, +17.2% vs last year.
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The top 3 regions with the biggest increases for the number of mortgages issued:
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- Madrid, +66% to 5,077 mortgages
- Balearic Islands, +63% to 823 mortgages
- Catalonia, +42.4% to 3,968 mortgages
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The top region in terms of amounts of mortgages issued
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- Extremadura, 51m€, +220%
- La Rioja, 13m€, +106%
- Cantabria, 39m€, +106%
- Asturias, 55m€, +105%
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The Spanish mortgage rates situation for August 2020
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- Average mortgage has an interest rate of 2.49% (vs 2.54% last month)
- The lowest rate ever was 2.47% reached in Nov 2019!
- The average mortgage duration is 24 years
- 50.6% have variable interest rates
- 49.4% have fixed interest rates
- The average rate for variable rate mortgages is 2.18%,
- The average rate for fixed-rate mortgages is 2.87%,
- The average amount issued per mortgage is €134,700: an increase of 4% vs last year.
- 19,825 mortgages were issued -3% vs last year.
- 3,7 € Bn of mortgages issued for housing in August 2020, +0.5% vs last year.
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The top 3 regions with the biggest increases for the number of mortgages issued:
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- Navarra, +32% to 286 mortgages
- Castilla – La Mancha, +15% to 981 mortgages
- Cantabria, +12% to 279 mortgages
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The top region in terms of amounts of mortgages issued
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- La Rioja, 15m€, +145%
- Canarias, 126m€, +91%
- Castilla – La Mancha, 94m€, +49%
- Extremadura, 33m€, +34%
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The Spanish mortgage rates situation for July 2020
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- Average mortgage has an interest rate of 2.54% (vs 2.49% last month)
- The lowest rate ever was 2.47% reached in Nov 2019!
- The average mortgage duration is 23 years
- 47.5% have variable interest rates
- 52.5% have fixed interest rates
- The average rate for variable rate mortgages is 2.27%,
- The average rate for fixed-rate mortgages is 2.86%,
- The average amount issued per mortgage is €132,346: an increase of 8.9% vs last year.
- 26,014 mortgages were issued -23% vs last year.
- 3,4 € Bn of mortgages issued for housing in July 2020, -16% vs last year.
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The top 3 regions with the biggest increases for the number of mortgages issued:
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- La Rioja, +51% to 202 mortgages
- Canarias, +45% to 1,221 mortgages
- Valencian community, +31% to 3,341 mortgages
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The top region in terms of amounts of mortgages issued
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- Basque Country, 282m€, +33%
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The Spanish mortgage rates situation for June 2020
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- Average mortgage has an interest rate of 2.5% (vs 2.49% last month)
- The lowest rate ever was 2.47% reached in Nov 2019!
- The average mortgage duration is 23 years
- 54% have variable interest rates
- 46% have fixed interest rates
- The average rate for variable rate mortgages is 2.11%,
- The average rate for fixed-rate mortgages is 2.96%,
- The average amount issued per mortgage is €131,670: an increase of 7.5% vs last year.
- 26,748 mortgages were issued -13% vs last year.
- 3,5 € Bn of mortgages issued for housing in June 2020, -6% vs last year.
-
-
-
-
-
-
-
The top 3 regions with the biggest increases for the number of mortgages issued are (monthly changes):
-
-
-
-
-
-
-
-
- Basque Country, +129% to 2,811 mortgages
- Extremadura, +79% to 562 mortgages
- Murcia, +59% to 798 mortgages
-
-
-
-
-
-
-
The top regions in terms of amounts of mortgages issued are (change vs 1 year ago):
-
-
-
-
-
-
-
-
- Basque Country, 366m€, +95%
- Extremadura, 45m€, +85%
- Murcia, 68m€, +57%
-
-
-
-
-
-
-
The Spanish mortgage rates situation in May 2020
Best mortgage conditions in Spain?
-
-
-
-
-
-
-
-
- Average mortgage has an interest rate of 2.49% (vs 2.48% last month)
- The lowest rate ever was 2.47% reached in Nov 2019!
- The average mortgage duration is 23 years
- 50.5% have variable interest rates
- 49.5% have fixed interest rates
- The average rate for variable rate mortgages is 2.11%,
- The average rate for fixed-rate mortgages is 3%,
- The average amount issued per mortgage is €127,145: an increase of 3.2% vs last year.
- 25,538 mortgages were issued -27% vs last year.
- 3.2 € Bn of mortgages issued for housing in May 2020, -29% vs last year.
-
-
-
-
-
-
-
The top regions with the biggest increases for the number of mortgages issued are (monthly changes):
-
-
-
-
-
-
-
-
- Andalusia, +6.8% to 5,580 mortgages
- Basque Country, +6.5% to 1,221 mortgages
- Galicia, +6.4% to 820 mortgages
-
-
-
-
-
-
-
The top region in terms of amounts of mortgages issued are (change vs 1 year ago):
-
-
-
-
-
-
-
-
- Murcia, 56.8 M€, +22%
-
-
-
-
-
-
-
The Spanish mortgage rates situation in April 2020
Best mortgage conditions in Spain?
-
-
-
-
-
-
-
-
- Average mortgage has an interest rate of 2.48% (vs 2.56% last month)
- The lowest rate ever was 2.47% reached in Nov 2019!
- The average mortgage duration is 24 years
- 48.4% have variable interest rates
- 51.6% have fixed interest rates
- The average rate for variable rate mortgages is 2.13%,
- The average rate for fixed-rate mortgages is 2.86%,
- The average amount issued per mortgage is €125,300: an decrease of 1.2% vs last year.
- 23,840 mortgages were issued -18% vs last year.
- 3 € Bn of mortgages issued for housing in April 2020, -19% vs last year.
-
-
-
-
-
-
-
The 3 regions with the biggest decreases for the number of mortgages issued are (monthly changes):
-
-
-
-
-
-
-
-
- Andalusia, +6.8% to 5,580 mortgages
- Basque Country, +6.5% to 1,221 mortgages
- Galicia, +6.4% to 820 mortgages
-
-
-
-
-
-
-
The top region in terms of amounts of mortgages issued are (change vs 1 year ago):
-
-
-
-
-
-
-
-
- Murcia, 56.8 M€, +22%
-
-
-
-
-
-
-
The Spanish mortgage rates situation in March 2020
Best mortgage conditions in Spain?
-
-
-
-
-
-
-
-
- Average mortgage has an interest rate of 2.56%
- The lowest rate ever is 2.47% reached in November 2019!
- The average mortgage duration is 23 years
- 47% have variable interest rates
- 53% have fixed interest rates
- The average rate for variable rate mortgages is 2.21%,
- The average rate for fixed-rate mortgages is 2.92%,
- The average amount issued per mortgage is €127,888: an increase of 1.6% vs last year.
- 26,382 mortgages were issued -15% vs last year.
- 3.4 € Bn of mortgages issued for housing in March 2020, -13% vs last year.
-
-
-
-
-
-
-
The top region with the biggest increases for the number of mortgages issued are (monthly changes):
-
-
-
-
-
-
-
-
- La Rioja, +44% to 254 mortgages
-
-
-
-
-
-
-
The top 3 regions in terms of amounts of mortgages issued are (change vs 1 year ago):
-
-
-
-
-
-
-
-
- Aragon, 93 M€, +48%
- Asturias, 57 M€, +24%
- Cantabria, 34M€, +8%
-
-
-
-
-
-
-
The Spanish mortgage rates situation in February 2020
Best mortgage conditions in Spain?
-
-
-
-
-
-
-
-
- Average mortgage has an interest rate of 2.64% (vs 2.55% last month)
- The lowest rate ever is 2.47% reached in November 2019!
- The average mortgage duration is 23 years
- 62% have variable interest rates
- 37% have fixed interest rates
- The average rate for variable rate mortgages is 2.47%
- The average rate for fixed-rate mortgages is 3.02%
-
-
-
-
-
-
-
The 3 regions with the biggest decreases for the number of mortgages issued are (monthly changes):
-
-
-
-
-
-
-
-
- Navarre, -45% to 373 mortgages
- Asturias, -38% to 694 mortgages
- Canary Islands, -31% to 1.035 mortgages
-
-
-
-
-
-
-
The top 3 regions in terms of amounts of mortgages issued are (change vs 1 year ago):
-
-
-
-
-
-
-
-
- Catalonia, 2.378 M€, +200%
- Andalusia, 1.109 M€, +57%
- Aragon, +30%
-
-
-
-
-
-
-
The Spanish mortgage rates situation in January 2020
Best mortgage conditions in Spain?
-
-
-
-
-
-
-
-
- Average mortgage has an interest rate of 2.55% (vs 2.53% last month)
- The lowest rate ever is 2.47% reached in November 2019!
- The average mortgage duration is 22 years
- 58% have variable interest rates
- 42% have fixed interest rates
- The average rate for variable rate mortgages is 2.22%
- The average rate for fixed-rate mortgages is 3.05%
-
-
-
-
-
-
-
The top 3 regions with the biggest increases for the number of mortgages issued are (monthly changes):
-
-
-
-
-
-
-
-
- Balearic Islands, +144% to 1.494 mortgages
- Asturias, +134% to 1.120 mortgages
- Castilla y Leon, +111% to 1.884 mortgages
-
-
-
-
-
-
-
The top 3 regions in terms of amounts of mortgages issued are (change vs 1 year ago):
-
-
-
-
-
-
-
-
- La Roja, 20 M€, +84%
- Navarre, 71 M€, +75%
- Balearic Islands, +74%
-
-
-
-
-
-
-
The Spanish mortgage rates situation in December 2019
Best mortgage conditions in Spain?
-
-
-
-
-
-
-
-
- Average mortgage has an interest rate of 2.53% (vs 2.47% last month)
- The average mortgage rate decreased by 5% vs 1 year ago
- The lowest rate ever is 2.47% reached in November 2019!
- The average mortgage duration is 23 years
- 56% have variable interest rates
- 44% have fixed interest rates
- The average rate for variable rate mortgages is 2.2%, 9.1% less than 1 year ago
- The average rate for fixed-rate mortgages is 3.06%, 2.6% more than 1 year ago
-
-
-
-
-
-
-
The top 3 regions with the biggest increases for the number of mortgages issued are (monthly changes):
-
-
-
-
-
-
-
-
- Castilla – La Mancha, +97% to 1.952 mortgages
- Canary Islands, +55% to 1.824 mortgages
- Madrid, +23% to 6.787 mortgages
-
-
-
-
-
-
-
The top 3 regions in terms of amounts of mortgages issued are (change vs 1 year ago):
-
-
-
-
-
-
-
-
- Castilla – La Mancha, 143 M€, +137%
- Madrid, 1.114 M€, +57%
- Canary Islands, +54%
-
-
-
-
-
-
-
The Spanish mortgage rates situation in November 2019
Best mortgage conditions in Spain?
-
-
-
-
-
-
-
-
- Average mortgage has an interest rate of 2.47% (vs 2.5% last month)
- The average mortgage rate decreased by 6.1% vs 1 year ago
- The lowest rate ever is the current rate 2.47%!
- The average mortgage duration is 24 years
- 57.3% have variable interest rates
- 42.7% have fixed interest rates
- The average rate for variable rate mortgages is 2.15%, 12.1% less than 1 year ago
- The average rate for fixed-rate mortgages is 3.01%, 0.3% more than 1 year ago
- The average amount issued per mortgage is €129,800: a decrease of 2.1% vs last year.
- 29,416 mortgages were issued -0.5% vs last year.
- 3.8 € Bn of mortgages issued for housing in October 2019, -0.9% vs last year.
-
-
-
-
-
-
-
The top 3 regions with the biggest increases for the number of mortgages issued are (monthly changes):
All the regions noticed a month on month decrease
Here are the most noticeable regions:
-
-
-
-
-
-
-
-
- Extremadura, +26.4% to 526 mortgages
- Cantabria, +13.6% to 376 mortgages
- Valencia Community, +12.8% to 3614 mortgages
-
-
-
-
-
-
-
The top 3 regions in terms of amounts of mortgages issued are (change vs 1 year ago):
-
-
-
-
-
-
-
-
- Extremadura, 48 M€, +72%
- Balearic Islands, 200 M€, +37%
- Cantabria, 43 M€, +36%
-
-
-
-
-
-
-
The Spanish mortgage rates situation in October 2019
Best mortgage conditions in Spain?
-
-
-
-
-
-
-
-
- Average mortgage has an interest rate of 2.50% (vs 2.51% last month)
- The average mortgage rate decreased by 5% vs 1 year ago
- The lowest rate ever is the current rate 2.50%!
- The average mortgage duration is 24 years
- 54.7% have variable interest rates
- 45.3% have fixed interest rates
- The average rate for variable rate mortgages is 2.09%, 11.2% less than 1 year ago
- The average rate for fixed-rate mortgages is 3.02%, 1.4% less than 1 year ago
- The average amount issued per mortgage is €129,000: a decrease of 2.1% vs last year.
- 29,691 mortgages were issued -1.1% vs last year.
- 3.8 € Bn of mortgages issued for housing in September 2019, -1.1% vs last year.
-
-
-
-
-
-
-
The top 3 regions with the biggest increases for the number of mortgages issued are (monthly changes):
All the regions noticed a month on month decrease
Here are the most noticeable regions:
-
-
-
-
-
-
-
-
- La Rioja, +127% to 186 mortgages
- Extremadura, +92% to 416 mortgages
- Cantabria, +80% to 331 mortgages
-
-
-
-
-
-
-
The top 5 regions in terms of amounts of mortgages issued are (change vs 1 year ago):
-
-
-
-
-
-
-
-
- Madrid, 936 M€, -12%
- Catalonia, 788 M€, -12%
- Andalusia, 660 M€, +8%
- Valencia Community, 327 M€, +20%
- Basque Country, 235 M€, +20%
-
-
-
-
-
-
-
The Spanish mortgage rates situation in September 2019
-
-
-
-
-
-
-
-
- Average mortgage has an interest rate of 2.51% (vs 2.55% last month)
- The average mortgage rate decreased by 3% vs 1 year ago
- The lowest rate ever is the current rate 2.51%!
- The average mortgage duration is 24 years
- 63.4% have variable interest rates
- 36.6% have fixed interest rates
- The average rate for variable rate mortgages is 2.13%, 9.3% less than 1 year ago
- The average rate for fixed-rate mortgages is 3.16%, 2.5% less than 1 year ago
- The average amount issued per mortgage is €135,452: a increase of 5.3% vs last year.
- 22,488 mortgages were issued -29.9% vs last year.
- 3 € Bn of mortgages issued for housing in August 2019, -29.9% vs last year.
-
-
-
-
-
-
-
The top 3 regions with the biggest increases for the number of mortgages issued are (monthly changes):
-
-
-
-
-
-
-
-
- Navarre, +50% to 328 mortgages
- Madrid, +47% to 4,708 mortgages
- Castilla La Mancha, +26% to 897 mortgages
-
-
-
-
-
-
-
The top 5 regions in terms of amounts of mortgages issued are (change vs 1 year ago):
-
-
-
-
-
-
-
-
- Madrid, 936 M€, -27%
- Catalonia, 545 M€, -28%
- Andalusia, 463 M€, -29%
- Valencian Community, 255 M€, -29%
- Basque Country, 203 M€, -21%
-
-
-
-
-
-
-
The Spanish mortgage rates situation in August 2019
-
-
-
-
-
-
-
-
-
- Average mortgage has an interest rate of 2.55% (vs 2.56% last month)
- The average mortgage rate decreased by 3% vs 1 year ago
- The lowest rate ever is the current rate 2.55!
- The average mortgage duration is 23 years
- 60.7% have variable interest rates
- 39.3% have fixed interest rates
- The average rate for variable rate mortgages is 2.21%, 3.2% less than 1 year ago
- The average rate for fixed-rate mortgages is 3.18%, 1.5% more than 1 year ago
- 20,385 mortgages were issued -29.9% vs last year.
- The average amount issued per mortgage is €128,501: a increase of 5% vs last year.
- 2,6 € Bn of mortgages issued for housing in August 2019, -29.9% vs last year.
-
-
-
-
-
-
-
-
The top 3 regions with the biggest decreases for the number of mortgages issued are (monthly changes):
-
-
-
-
-
-
-
-
- La Rioja, -72% to 74 mortgages
- Extremadura, -57% to 279 mortgages
- Castilla La Mancha, -53% to 714 mortgages
-
-
-
-
-
-
-
The top 3 regions with the biggest decreases in terms of amounts of mortgages issued are (yearly change):
-
-
-
-
-
-
-
-
- La Rioja, -65% to 6m issued
- Extremadura, -56% to 23m issued
- Canariasa, -45% to 66m issued
-
-
-
-
-
-
-
The Spanish mortgage rates situation in July 2019
-
-
-
-
-
-
-
-
- Average mortgage has an interest rate of 2.56% (vs 2.57% last month)
- The average mortgage rate decreased by 1.2% vs 1 year ago
- The lowest rate ever is the current rate 2.56!
- The average mortgage duration is 23 years
- 58.1% have variable interest rates
- 41.9% have fixed interest rates
- The average rate for variable rate mortgages is 2.14%, 7.3% less than 1 year ago,
- The average rate for fixed-rate mortgages is 3.16%, 2.8% less than 1 year ago,
- The average amount issued per mortgage is €121,414: a decrease of 2,5% vs last year.
- 33,344 mortgages were issued +13.1% vs last year.
- 6,3 € Bn of mortgages issued for housing in July 2019, +15.2% vs last year.
-
-
-
-
-
-
-
The top 3 regions with the biggest growth for the number of mortgages issued are (monthly changes):
For a first time since long, all the regions suffer a month on month negative growth. The one with the smallest decreases are
-
-
-
-
-
-
-
-
- La Rioja, +79.3% to 269 mortgages
- Castilla La Mancha, +44% to 1,508 mortgages
- Asturias, +37% to 671 mortgages
-
-
-
-
-
-
-
The top 3 regions with the biggest growth in terms of amounts of mortgages issued are (yearly change):
-
-
-
-
-
-
-
-
- Extremadura, +45.9% to 652 mortgages
- Castilla La Mancha, +38% to 1,508 mortgages
- Castilla y Leon, +33.9% to 1,430 mortgages
-
-
-
-
-
-
-
The Spanish mortgage rates situation in June 2019
-
-
-
-
-
-
-
-
- Average mortgage has an interest rate of 2.57% (vs 2.62% last month)
- The average mortgage rate decreased by 3% vs 1 year ago
- The lowest rate ever is 2.57!
- The average mortgage duration is 24 years
- 55.5% have variable interest rates
- 44.5% have fixed interest rates
- The average rate for variable rate mortgages is 2.29%, 6.1% less than 1 year ago,
- The average rate for fixed-rate mortgages is 3.01%, 1.3% less than 1 year ago,
- The average amount issued per mortgage is €119,964: a increase of 3,7% vs last year.
- 29,900 mortgages were issued -2.5% vs last year.
- 3,6 € Bn of mortgages issued for housing in May 2019, -6.1% vs last year.
-
-
-
-
-
-
-
The top 3 regions with the biggest growth for the number of mortgages issued are (monthly changes):
For a first time since long, all the regions suffer a month on month negative growth. The one with the smallest decreases are
-
-
-
-
-
-
-
-
- Region of Murcia, -2.6% to 824 mortgages
- Community of Navarra, -4.5% to 383 mortgages
- Basque country, -5.2% to 1,703 mortgages
-
-
-
-
-
-
-
The top 3 regions with the biggest growth in terms of amounts of mortgages issued are (yearly change):
-
-
-
-
-
-
-
-
- Community of Valencia, +16.9% to 3,748 mortgages
- Region of Murcia, +12% to 824 mortgages
- Basque country, +9.3% to 1,703 mortgages
-
-
-
-
-
-
-
The Spanish mortgage rates situation in May 2019
-
-
-
-
-
-
-
-
- Average mortgage has an interest rate of 2.59% (same as last month)
- The average mortgage rate decreased by 2.9% vs 1 year ago
- The lowest rate ever is 2.57!
- The average mortgage duration is 24 years
- 56.8% have variable interest rates
- 43.2% have fixed interest rates (+6.7% vs last year)
- The average rate for variable rate mortgages is 2.3%, 5.1% less than 1 year ago,
- The average rate for fixed-rate mortgages is 3.09%, 1.8% less than 1 year ago,
- The average amount issued per mortgage is €124,700: a increase of 3.9% vs last year.
- 29,032 mortgages were issued -0.1% vs last year.
- 3.6 € Bn of mortgages issued for housing in April 2019, +0.6% vs last year.
-
-
-
-
-
-
-
The top 3 regions with the biggest growth for the number of mortgages issued are (monthly changes):
-
-
-
-
-
-
-
-
- Community of Navarra, +45.3% to 510 mortgages
- Aragon, +19.7% to 814 mortgages
- Asturias, +11.9% to 556 mortgages
-
-
-
-
-
-
-
The Spanish mortgage rates situation in March 2019
-
-
-
-
-
-
-
-
- Average mortgage has an interest rate of 2.62% (same as last month)
- The average mortgage rate decreased by 2.3% vs 1 year ago
- The lowest rate ever is 2.57!
- The average mortgage duration is 24 years
- 58.1% have variable interest rates
- 41.9% have fixed interest rates (+24.5% vs last year)
- The average rate for variable rate mortgages is 2.34%, 2.7% less than 1 year ago,
- The average rate for fixed-rate mortgages is 3.11%, 1.6% more than 1 year ago,
- The average amount issued per mortgage is €125,341: a increase of 3.9% vs last year.
- 30,716 mortgages were issued + 9.2% vs last year.
- 3.8 € Bn of mortgages issued for housing in March 2019, +20.3% vs last year.
-
-
-
-
-
-
-
The top 3 regions with the biggest growth for the number of mortgages issued are (monthly changes):
-
-
-
-
-
-
-
-
- The Balearic Islands, +47% to 1,159 mortgages
- Andalusia, +17% to 6,069 mortgages
- Extremadura, +14% to 503 mortgages
-
-
-
-
-
-
-
The top 3 regions with the biggest growth in terms of amounts of mortgages issued are (yearly change):
-
-
-
-
-
-
-
-
- The Balearic Islands, +49% to 1,159 mortgages
- Extremadura, +36% to 503 mortgages
- Murcia, +31% to 503 mortgages
-
-
-
-
-
-
-
The Spanish mortgage rates situation in February 2019
-
-
-
-
-
-
-
-
- Average mortgage has an interest rate of 2.62% (vs 2.57% last month)
- The average mortgage rate decreased by 1.1% vs 1 year ago
- The current rate: 2.62% is close to the lowest rate ever of 2.57!
- The average mortgage duration is 23 years
- 58.2% have variable interest rates
- 41.8% have fixed interest rates (+17.4% vs last year)
- The average rate for variable rate mortgages is 2.37%, 4% less than 1 year ago,
- The average rate for fixed-rate mortgages is 3.05%, 0.4% more than 1 year ago,
- The average amount issued per mortgage is €123,911: a increase of 2.9% vs last year.
- 31.018 mortgages were issued + 9.2% vs last year.
- 3.8 € Bn of mortgages issued for housing in February 2019, +12.3% vs last year.
-
-
-
-
-
-
-
The top 3 regions with the biggest growth for the number of mortgages issued are (monthly changes):
After a seasonally slower December, January looks even stronger vs December:
-
-
-
-
-
-
-
-
- Asturias, +24.9% to 728 mortgages
- Catalonia, +8.4% to 5.448 mortgages
- Pais Vasco, + 2.9% to 1.713 mortgages
-
-
-
-
-
-
-
The top 3 regions with the biggest growth in terms of amounts of mortgages issued are (yearly change):
-
-
-
-
-
-
-
-
- Asturias, +56% to 728 mortgages
- Castilla – La Mancha, +43% to 1.321 mortgages
- La Rioja, + 39% to 241 mortgages
-
-
-
-
-
-
-
The 6 regions with the biggest growth on the full year 2018
-
-
-
-
-
-
-
-
- The Valencian Community, +15.7% to 38.004 mortgages
- The Community of Madrid, +14.9% to 65.503 mortgages
- Castilla – La Mancha, +14.8% to 12.501 mortgages
- La Rioja, +13.5% to 2.332 mortgages
- The Community of Navarre, +13.4% to 4.615 mortgages
- Catalonia, +13% to 57.477 mortgages
- Extremadura, +12.3% to 5.550 mortgages
-
-
-
-
-
-
-
The 4 most active regions in 2018
No surprises, we keep the same regions as the most active ones in terms of transactions:
-
-
-
-
-
-
-
-
- The Community of Madrid, 65.503 mortgages with a growth of 14.9%
- The Andalusia, 65.431 mortgages with a growth of 8.6%
- Catalonia, 57.477 mortgages with a growth of 14.9%
- The Valencian Community, 38.004 mortgages with a growth of 15.7%
-
-
-
-
-
-
-
The Spanish mortgage rates situation in January 2019
-
-
-
-
-
-
-
-
- Average mortgage has an interest rate of 2.57% (vs 2.62% last month)
- The average mortgage rate decreased by 4.3% vs 1 year ago
- The current rate: 2.57% is the lowest rate ever!
- The average mortgage duration is 22 years
- 62.8% have variable interest rates
- 37.2% have fixed interest rates (+9.1% vs last year)
- The average rate for variable rate mortgages is 2.32%, 8% less than 1 year ago,
- The average rate for fixed-rate mortgages is 3.09%, 1.6% more than 1 year ago,
- The average amount issued per mortgage is €121,036: a decrease of -0.7% vs last year.
- 36.832 mortgages were issued + 22.5% vs last year.
- 4.4 € Bn of mortgages issued in January 2019, +21.6% vs last year.
-
-
-
-
-
-
-
The top 3 regions with the biggest growth for the number of mortgages issued are (monthly changes):
After a seasonally slower December, January looks even stronger vs December:
-
-
-
-
-
-
-
-
- Madrid Community, +168% to 10.478 mortgages
- Castilla – La Mancha, +101% to 1.485 mortgages
- Extremadura, + 76% to 542 mortgages
-
-
-
-
-
-
-
The top 3 regions with the biggest growth in terms of amounts of mortgages issued are (yearly change):
-
-
-
-
-
-
-
-
- Madrid Community, +105% to 10.478 mortgages
- Castilla – La Mancha, +25% to 1.485 mortgages
- Aragón, + 17% to 910 mortgages
-
-
-
-
-
-
-
The Spanish mortgage rates situation in December 2018
-
-
-
-
-
-
-
-
- Average mortgage has an interest rate of 2.62% (vs 2.61% last month)
- The average mortgage rate decreased by 3.9% vs 1 year ago
- The lowest rate ever is 2.57%!
- The average mortgage duration is 24 years
- 58.6% have variable interest rates
- 41.4% have fixed interest rates (+9.1% vs last year)
- The average rate for variable rate mortgages is 2.42%, 4.7% less than 1 year ago,
- The average rate for fixed-rate mortgages is 2.98%, 4.8% less than 1 year ago,
- The average amount issued per mortgage is €126,394: an increased of 9.4% vs last year.
- 20.933 mortgages were issued + 0.9% vs last year.
- 2.6 € Bn of mortgages issued in December 2018, +10.4% vs last year.
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The top 3 regions with the biggest growth for the number of mortgages issued are (monthly changes):
All the regions had a negative growth. Of course December is well known for being less busy all over the world.
The top 3 regions with the biggest growth in terms of amounts of mortgages issued are (yearly change):
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- The Basque Country, +20.1% to 1.333 mortgages
- The Valencian Community, +17.3% to 2.456 mortgages
- Catalonia, +12% to 3.390 mortgages
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The Spanish mortgage rates situation in November 2018
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- Average mortgage has an interest rate of 2.61% (vs 2.57% last month)
- The average mortgage rate decreased by 5.7% vs 1 year ago
- The lowest rate ever is 2.57%!
- The average mortgage duration is 23 years
- 64% have variable interest rates
- 36% have fixed interest rates (+25.9% vs last year)
- The average rate for variable rate mortgages is 2.42%, 0.7% less than 1 year ago,
- The average rate for fixed-rate mortgages is 3.07%, 14.1% less than 1 year ago,
- The average amount issued per mortgage is €130,651: an increased of 5.5% vs last year.
- 28.835 mortgages were issued + 14.2% vs last year.
- 5.6 € Bn of mortgages issued in November 2018, +13.7% vs last year.
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The top 3 regions with the biggest growth for the number of mortgages issued are (monthly changes):
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- The Canary Islands, +39.4% to 1.299 mortgages
- The Balearic Islands, +17.8% to 899 mortgages
- Asturies, +4.7% to 532 mortgages
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The top 3 regions with the biggest growth in terms of amounts of mortgages issued are (yearly change):
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- The Canary Islands, +28.6% to 1.299 mortgages
- Catalonia, +25% to 5.363 mortgages
- The Valencian Community, +24.4% to 3.178 mortgages
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The Spanish mortgage rates situation in October 2018
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- Average mortgage has an interest rate of 2.57% (vs 2.59% last month)
- The average mortgage rate decreased by 4.3% vs 1 year ago
- The lowest rate ever is 2.57%! YES, the current rate!
- The average mortgage duration is 24 years
- 60.4% have variable interest rates
- 39.6% have fixed interest rates (+25.9% vs last year)
- The average rate for variable rate mortgages is 2.43%, 2.9% less than 1 year ago,
- The average rate for fixed-rate mortgages is 2.99%, 3.7% less than 1 year ago,
- The average amount issued per mortgage is €126,926: an increased of 4.6% vs last year.
- 30.356 mortgages were issued + 20.4% vs last year.
- 5.8 € Bn of mortgages issued in October 2018, +13.9% vs last year.
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The top 3 regions with the biggest growth for the number of mortgages issued are (monthly changes):
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- Navarra Community, +21.6% to 472 mortgages
- Catalonia, +10.7% to 5.808 mortgages
- Castilla y Leon, +4.8% to 1.153 mortgages
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The top 3 regions with the biggest growth in terms of amounts of mortgages issued are (yearly change):
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- Navarra Community, +53.7% to 472 mortgages
- Catalonia, +40.7% to 5.808 mortgages
- Aragon, +36.8% to 729 mortgages
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The Spanish mortgage rates situation in September 2018
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- Average mortgage has an interest rate of 2.59% (vs 2.62% last month)
- The average mortgage rate decreased by 8.3% vs 1 year ago
- The lowest rate ever is 2.59%!
- The average mortgage duration is 24 years
- 59.9% have variable interest rates
- 40.1% have fixed interest rates (+16.7% vs last year)
- The average rate for variable rate mortgages is 2.36%, 10.8% less than 1 year ago,
- The average rate for fixed-rate mortgages is 3.02%, 5.9% less than 1 year ago,
- The average amount issued per mortgage is €127,732: an increased of 4.1% vs last year.
- 32.457 mortgages were issued + 9.5% vs last year.
- 6.6 € Bn of mortgages issued in September 2018, +10% vs last year.
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The top 4 regions with the biggest growth for the number of mortgages issued are (monthly changes):
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- Valencian Community, +32.5% to 3.863 mortgages
- Madrid, +30.6% to 6.530 mortgages
- Murcia, +21.5% to 866 mortgages
- Catalonia, +18.4% to 5.246 mortgages
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The top 4 regions with the biggest growth in terms of amounts of mortgages issued are (yearly change):
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- La Rioja, +123%
- Extremadura, +54%
- The community of Navarre, +37%
- Madrid, +28%
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The Spanish mortgage rates situation in August 2018
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- Average mortgage has an interest rate of 2.62% (vs 2.59% last month)
- The average mortgage rate decreased by 4.3% vs 1 year ago
- The lowest rate ever is 2.59%!
- The average mortgage duration is 24 years
- 59.8% have variable interest rates
- 40.2% have fixed interest rates
- The average rate for variable rate mortgages is 2.43%, 5.5% less than 1 year ago,
- The average rate for fixed-rate mortgages is 2.99%, 3.1% less than 1 year ago,
- The average amount issued per mortgage stands at €122,424, an increased of 9.8% vs last year.
- 28.755 mortgages were issued + 6.8% vs last year.
- 5.4 € Bn of mortgages issued in August 2018, +11% vs last year.
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The top 4 regions with the biggest growth for the number of mortgages issued are:
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- Extremadura, +31% to 604 mortgages
- The Canary Islands, +19,6% to 1.396 mortgages
- Cantabria, +16,4% to 326 mortgages
- Madrid, +13,9% to 5.000 mortgages
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The top 4 regions with the biggest growth in terms of amounts of mortgages issued are:
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- Extremadura, +61%
- Madrid, +29%
- Andalusia, +28%
- Basque country, +24%
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The Spanish mortgage rates situation in July 2018
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- Average mortgage has an interest rate of 2.59% (vs 2.63% last month)
- Average mortgage rate decreased by 6.3% vs 1 year ago
- The lowest rate ever is 2.59%! YES, the current rate reached this month!
- Mortgage duration is 22 years
- 62.3% have variable interest rates
- 37.7% have fixed interest rates
- The average rate for variable rate mortgages is 2.32%, 7.3% less than 1 year ago,
- The average rate for fixed-rate mortgages is 3.07%, 5.7% less than 1 year ago,
- The average amount issued per mortgage stands at €125,120, an increased of 2.1% vs last year.
- 29.287 mortgages were issued + 14.6% vs last year.
- 3.6 € Bn of mortgages issued in July 2018, +17% vs last year.
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The top 4 regions with the biggest growth for the number of mortgages issued:
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- Extremadura, +38.9% to 457 mortgages.
- The Valencian Community, +28.1% to 3.276 mortgages
- La Rioja, +28.1% to 283 mortgages
- Madrid, +27,5% to 5.713 mortgages
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The top 4 regions with the biggest growth in terms of amounts of mortgages issued:
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- La Rioja, +77.3%
- The region of Murcia, +43%
- Cantabria, +39.8%
- The Valencian Community, +39%
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The Spanish mortgage rates situation in June 2018
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- Average mortgage has an interest rate of 2.63%
- Average mortgage rate decreased by 6.8% vs 1 year ago
- The lowest rate ever is 2.62% reached in March 2018
- Mortgage duration is 23 years
- 62.9% have variable interest rates
- 37.1% have fixed interest rates
- The average rate for variable rate mortgages is 2.19%, 11.3% less than 1 year ago,
- The average rate for fixed-rate mortgages is 3.25%, 0.5% more than 1 year ago,
- The average amount issued per mortgage stands at €123,896, an increased of 5.1% vs last year.
- 30.600 mortgages were issued + 3.9% vs last year.
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The top 3 regions with the biggest mortgages growth:
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- Madrid, +23,2% to 6.399 mortgages,
- Aragon, +10.6% to 957 mortgages,
- Extremadura, +18.4% to 616 mortgages.
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The Spanish mortgage rates situation in May 2018
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- Average mortgage has an interest rate of 2.63%
- Average mortgage rate decreased by 4.3% vs 1 year ago
- The lowest rate ever was 2.62% in March 2018
- Mortgage duration is 22 years
- 61.9% have variable interest rates
- 38.1% have fixed interest rates
- The average rate for variable rate mortgages is 2.4%, 9.8% less than 1 year ago,
- The average rate for fixed-rate mortgages is 3.12%, 6.6% more than 1 year ago,
- The average amount issued per mortgage stands at €117,044, an increased of 2.8% vs last year.
- 31.166 mortgages were issued + 7.3% vs last year.
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While the top 4 regions in terms of annual growth were:
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- The Canary Islands, +70,9% to 1.984 mortgages,
- Extremadura, +18.5% to 570 mortgages,
- Pais Vasco, +18.4% to 1.783 mortgages,
- Navarra, +17.3% to 441 mortgages
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Check the Spanish report from the INE.
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The post What are the best Spanish mortgage rates? September 2024 update appeared first on How to buy in Spain.
]]>The post The best search tips for buying your Spanish property appeared first on How to buy in Spain.
]]>Reading time 9 minutes. Use our table of content for a quick read.Last Updated on 25/06/2024 by STEPHANE
Click on any flag to get an automatic translation from Google translate. Some news could have an original translation here: News Nouvelles Nieuws Noticias Nachrichten
How to find the ideal Spanish property?
Discover our exhaustive and exclusive steps to find the perfect property matching your expectations.
Since we started to invest in the Spanish real estate market in 2012, we have built a network of local real estate experts in Spain and became the one-stop-shop solution for foreigners looking for help to buy a property in Spain. We launched this new series of four articles so that you get all your answers and all our tips before going after your dream property.
With our first article: How should you start your Spanish property search? we gave you answers on many specific issues related to the purchase of a property in Spain: Why would you buy a property in Spain? What are your objectives? The perfect criteria for your future dream home?
With our second article, we helped you to find the perfect location for your property in Spain: Sea view or countryside? When will you visit Spain? Is the cost of life important? Will you relocate or retire in Spain? Will you look for a second home or an investment property? What are your ideal location criteria? We concluded that article with an overview of the different Spanish Costas.
Now, that you know why you want to buy a property in Spain, how you should do it and in which part of Spain, it is time to move on and search for your Spanish dream property. Finding a cheap property in Spain is easy, finding your property that will match your expectations is another step.
Our customers have different objectives when they buy a property in Spain: finding a holiday home, relocate, retire or invest in real estate. All those objectives mean different expectations about an ideal property.
With our help, we want you to make this property acquisition a success.
Here is how we will help you out with this property search:
The best searching tips for your Spanish property
As you learned in our previous articles, it is not difficult to buy a property in Spain. It is even quite cheap if you compare it to other European countries. How can you find your ideal Spanish property?
There are two main avenues: either you go on your own for your property search or you enjoy the precious help of a Spanish-based property finder who knows his market and will negotiate the price for you. Worst case, he will tell you: “You should pay the requested price because this is a bargain and it won’t stay on the market for too long”. Of course, as you will read, the main advantage of a local property hunter is that he is on the ground and you are abroad. So, he will speed up the process.
Whatever the avenue you take, that is why we recommend searching for legal advice and hire a real estate lawyer. Why? It is well known that, in Spain, issues could arise from a property sale. Actually, notaries duties are lighter than in other European countries. So you can make it without a lawyer but it is a safety net we think is a must as we talk of big investments.
The best place for your future dream property is always the place that you will love. So, take time, visit properties, discover neighbourhoods and nice villages and enjoy yourself first. All the steps we will describe here are the same with or without a property hunter apart from the first two steps that describe why you should take a property hunter and how he works. If you want to search for your Spanish holiday home on your own, you can skip the first two points.
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The six reasons why a local property hunter is a nice-to-have
He knows the market, He will save your money and make this property a savvy investment, He will save your time, He will protect your interests, He speaks Spanish and your language, He will find solutions after your purchase. So, of course, you can search the property by yourself but as you live abroad, it is not easy, it is time consuming and last but not least you don’t have a clue about the real property market price, that’s why usually he will save a lot of money by working for you. To summarize, working with a local property hunter speaking your language will speed up the process, make it much more smooth and will save you time and money as you won’t need to travel for visiting the 10 properties not corresponding to your taste. Follow this link to read our detailed article on the subject.
Check the accomplished missions of our property hunters everywhere in Spain
- A countryside villa close to Barcelona and Tossa de Mar: Costa Brava property investment
- A mountain-view detached villa in Calonge: Costa Brava property investment
- Costa Brava property investment: A sea-view apartment with pool in Platja d’Aro
- Costa Blanca property investment: a holiday home in Calpe – Alicante
- Murcia property hunting: 3 case studies
- Barcelona property hunting: an apartment in Barcelona got a quick refresh for €15,000
- Costa Blanca property hunting: a property investment and a renovation in Altea
- Costa de la Luz property hunting: Our property finder in the Costa de la Luz last transaction
- Tarragona property hunting: a Case study of a property for sale in the Costa Dorada
- Tenerife property hunting: a Case study of property for sale in Tenerife
- Barcelona property hunting: a Case study
- Madrid property hunting: a Case study
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How does a Spanish property finder work?
There are six main steps: 1.Interview with the customer, 2. The contract, 3.The property search and visit of properties, 4.Feedback and exchange of views with the customer, 5.Purchase of the property, 6.The real estate personal shopper will assist his customer with formalities. Follow this link if you want to read more about what a Spanish-based property finder will do for you. With the same link, you can have a look at some property searches realised by our property hunters in different Spanish Costas and of course, you can search for your local property hunter in your favourite Spanish region.
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A real estate lawyer is your must-have AND the first step to your Spanish home
You can search for your property alone, but in Spain, a Spanish property lawyer is a clear must. For many reasons:
Buying real estate in Spain is very easy: what is not, is knowing what you buy. As one of our legal partners summarize:
“ it is in this context that the role of the lawyer is essential, not only to collect the documents that will allow you to sign and obtain the registration of the property at your name in the property registry (management procedures) but especially to obtain the documents to which the law does not give you obligatorily access before the sale but whose study is essential to know the ins and outs of your purchase (audit procedures).”
Have a quick look at our two articles on the subject if you want to read more:
Why do you need a property lawyer for buying real estate in Spain?
What is the legal due diligence for your Spanish property?
If you want to find a good local Spanish property lawyer, you should follow the link and take one from our network.
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Each person involved with this project should list his objectives
Remember that, as you saw in our past articles from this series: your objectives will differ depending on the function of the property: Second home, first home, home to retire or investment property.
Here is a quick example of objective: I want a second home for living there 3 months per year (summer months + 3 holiday weeks), I want it close to the airport, within walking distance of the beach and allowing me to receive all my family (4 bedrooms). As I am a golfer, I want it close to golf courses. My wife wants it close to shopping areas as she does not drive.
Don’t hesitate to go further into details, the more you go into details, the easier it will be to know if you found the perfect property.
Don’t worry if you can’t find too many ideas, our criteria lists available in this article will make sure that you have the main criteria.
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Looking for a Resale in Spain
The Spanish real estate market is very interesting for either a resale or a new build property. Of course, you can buy an existing property with its past or you can go for the comfort of a new build property. Both are possible in Spain. Both are very competitive in terms of price, of course, the price of your property will be driven mainly by its location and its size. It will be less dependent on the fact that it is a resale or a new build. Of course, resale could even be more expensive if you take into account the renovation works that will come with it, 90% of the time. Buying a resale in Spain could have a lot of charm and with some renovation works you can give it as much modern touch as you want. Even if renovation works are not expensive in Spain, it could come more expensive than a new build property when you check it at the end of the project.
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Looking for a new build property in Spain?
Buying a new build property in Spain has many advantages:
- Impressive standards specifications: designed for modern living:
- Personalize your property to your taste
- New build prices in Spain are very competitive vs resale + renovation costs
- Fewer uncertainties:
- 3-year warranty on the building works
- 10-year warranty on design faults by the architect
- 10-year warranty on structural defects by the builder
Read more on that: What are the advantages of buying a new build property in Spain?
Discover the best new build projects in Spain, direct from our partners with a €5,000 discount!
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List your location criteria
Get back to our second article ” Where are the best places for your Spanish property? ” and make sure all your location criteria are listed
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List your property criteria
Of course, you will have the usual suspects as the size of the property, the number of bedrooms, sea view or not, pool or no pool, terrace or garden?… Here are some other useful property criteria: Position of the property vs its environment, Quality of the property, access to amenities, Layout of the property, Neighbours, Outdoor Spaces (Garden, Terrace, Pools,…), Natural light, Eco friendly?, Community fees, Yearly maintenance costs, taxes
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Use our ranking system for comparing your future Spanish homes
Ranking your property according to criteria will allow you three main objectives
- remove emotions
- help you to compare properties
- allow you to discuss and compare properties with your partner
It is quite useful and easy to make.
In this chapter, you will learn how to do the ranking, so we will explain the general method here while in the next 4 chapters, you will get specific data related to each specific Spanish property purchase: a second home, a first home to relocate, a home to retire in Spain, an investment property.
Whenever you understand how our ranking system works, you can switch directly to the specific chapter corresponding to your situation, they will have quick guides as well. In those chapters, you will find a downloadable form with an example of how to rank your next property. You will just need to adjust it with your own criteria list and give them weights and ratings.The idea is simple: to create a weighted matrix containing the physical characteristics (pragmatic, rational) of the house, we will call them the Criteria and you will give each of them an importance level (personal, irrational) or Weights. Each person involved with the project should do the same.
By listing those location and property CRITERIA in a table, it will help you for comparing the different properties visited by giving them a global score.
The CRITERIA are rational and shouldn’t take into account your personal feelings (unless for one – see pdf for example). They are listed beforehand by all the parties involved in the form of an exhaustive list of each of their criteria.
For each of those criteria, you will give them
- WEIGHTS, indicating the importance of the criteria for the persons involved in the property search. – ranging from 1 to 10 (best). They are specified on the worksheet before visiting the property and are the same for all your potential properties.
- RATINGS, which is your view on whether the criteria are fully met or not by this specific property – ranging from 1 to 10 (best). The ratings will be completed after visiting each property. The ratings are specific to each property.
By multiplying WEIGHTS (1) and RATINGS (2), CRITERIA will get a personal score. By adding all these values, we will get an overall score for the property. This score has two subscores: a location score and a property score.
To sum it up, here is the step by step guide to your ideal Spanish property:
- List criteria for the ideal Spanish holiday home with all the persons involved
- Give a WEIGHT for each criterion between 1 and 10. (10= important, 1= not important)
- Visit the potential properties and each person involved give RATINGS between 1 and 10 for all the criteria. (10= criteria met perfectly, 1 = bad)
- Compare the total scores for each property, rank them and compare with results of other persons involved in the project.
This process will help you to rationalise your property purchase and will remove some of the emotions involved. This is important as buying a second home in Spain is a big investment.
For further reading on this subject, read the very interesting article written by our B&B expert, Patrick: How to compare and select the perfect B&B in Spain?
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Compare your Spanish holiday homes – download pdf form
Now that you know how to proceed, we did the work and created a downloadable pdf easy to use allowing you to compare your different Spanish holiday homes. Once you have visited potential second homes, you can compare your ranking with the ranking of your partner. Start discussing your top three properties with your partner and make a choice. If you can’t, that’s because you are not convinced up to now, so, continue searching.
The top 6 location criteria for your Spanish second home
- Within 45 minutes of the Airport by car
- Is the weather as you want when you will go (winter months?)? Check our monthly weather statistics for the top 20 Spanish cities
- Is the beach close to the property?
- If you play golf, are golf courses within 20 minutes by car?
- Discover the best new build projects located on a golf resort
- Are restaurants close to the property?
- Most of the time you want to relax with your family, so recreational and family activities should be available in the region.
You will need to adjust this list with your location criteria for your ideal Spanish holiday home. Have a look at our downloadable pdf available at the end of this section for an exhaustive list of criteria and our ranking system for your future holiday homes.
The top 7 property criteria for your ideal Spanish second home
- Your personal feeling
- Is the number of sleeping rooms & bathrooms corresponding to your expectations? Take it big enough as you will always have friends visiting ;).
- Are the outdoor spaces corresponding to what you want? Garden, Terrace,… You will be 90% of your time outside.
- If you want a pool, yes the pool is important to refresh during hot summers.
- Are the quality of construction and the layout of the property fine?
- Is the size of the property as you want?
- May I rent the property short term? Is it legal?
Have a look at our detailed ranking form in pdf and start now the ranking of all your potential holiday homes.
Our downloadable pdf form for ranking your different Spanish holiday homes.
How to compare two Spanish second homes?Read our complete article on that subject: How to find the perfect holiday home in Spain?
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Compare investment properties in Spain – download pdf form
Now that you know how to rank properties (see bullet 9), here are our top criteria for finding the perfect investment property in Spain. You will find the downloadable pdf easy to use allowing you to compare your different Spanish investment properties. Once you have visited potential investments properties, you can compare the ranking of each property. To compare investment properties, we have added a series of criteria: “investment criteria”.
The top 7 investment criteria for investing in real estate in Spain:
- Own funds needed to invest
- Rental Yield
- Potential for value-adding creation
- Renovation costs
- Easiness to sell in the future
- The uniqueness of the property
- Property Management costs
The top 7 location criteria for your Spanish investment property
- Close to economic activities: city centre, companies,…
- Good public transport network, surely within 10 min on foot
- Close to universities and research centres
- A lot of restaurants in the neighbourhood
- Shops in the neighbourhood
- Close to tourist places (important if tourist rental)
- Strong demand for short term rentals (if legal)
You will need to adjust this list with your location criteria for your ideal Spanish investment property. Have a look at our downloadable pdf available at the end of this section for an exhaustive list of criteria and our ranking system for your future Spanish investment properties.
The top 7 property criteria for your Spanish investment property
- Property price is aggressive vs market
- The size of the property is standard (not too big), i.e. +/-80m², which means that it will be easy to resell and rent
- Outdoor Spaces: Garden, Terrace,… As the weather is nice 320 days per year in Spain, people are living outside
- Quality of construction / Layout of the property
- Personal feeling
- Yearly maintenance costs and taxes
- May I rent my property short term? It is not always legal to rent a property short term in Spain
Have a look at our detailed ranking form in pdf and start now the ranking of all your potential investment properties.
Read our complete article on that subject: How to find the perfect investment property in Spain?
Our downloadable pdf form for ranking your different Spanish investment properties.
How to compare two Spanish investment properties?-
Compare homes to relocate to Spain – download pdf form
Now that you know how to rank and compare properties (see bullet 9), here are our top criteria for finding the perfect home to relocate to Spain. You will find the downloadable pdf easy to use allowing you to compare your different homes. Once you have visited potential investments properties, you can compare the ranking of each property.
The top 7 location criteria for your Spanish first home
- A lively neighbourhood 12 months per year. It should be active during the winter months.
- Commuting time to work and Schools is less than 40 minutes
- Plenty of shops within 10 minutes on foot
- Close to a good public transport network
- Is the cost of life of your Spanish city fitting with your desires?
- Is the weather as you want 320 days per year? We all know why we want to live in Spain!
- Beach within 20 minutes reach by car. Let’s enjoy the weekends.
You will need to adjust this list with your location criteria for your ideal first home. Have a look at our downloadable pdf available at the end of this section for an exhaustive list of criteria and our ranking system for your future Spanish first home.
The top 7 property criteria for your Spanish first home
- Your personal feeling
- Is the number of sleeping rooms & bathrooms corresponding to your expectations? Take it big enough as you will always have friends visiting ;).
- If you want a pool, yes the pool is important to refresh during hot summers.
- Are the outdoor spaces corresponding to what you want? Garden, Terrace,… You will be 90% of your time outside.
- Is the size of the property as you want?
- Are the quality of construction and the layout of the property fine?
- Property price in line with the market
Have a look at our detailed ranking form in pdf and start now the ranking of all your potential first homes in Spain.
Our downloadable pdf form for ranking your new Spanish first home
How to compare two Spanish First homes- relocate to SpainRead our complete articles on that subject: Why and how to relocate to Spain? How to find the perfect home to relocate to Spain?
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Compare homes to retire to Spain – download pdf form
Now that you know how to rank properties (see bullet 9), here are our top criteria for finding the perfect home to retire to Spain. You will find the downloadable pdf easy to use allowing you to compare your different Spanish homes. Once you have visited potential properties, you can compare the ranking of each property with other ones.
The top 7 location criteria for your home to retire to Spain
- A secure Neighbourhood
- Close to family members
- A lively neighbourhood 12 months per year
- Shops are close and less than 10 minutes on foot
- Proximity to excellent Hospital & care facilities
- Is the cost of life of the city fitting with your desires?
- Recreational and social activities around?
You will need to adjust this list with your location criteria for your ideal home to retire to Spain. Have a look at our downloadable pdf available at the end of this section for an exhaustive list of criteria and our ranking system for your future Spanish home.
The top 7 property criteria for your home to retire to Spain
- Personal feeling, it is time to think about yourself no?
- Security: fence and/or entrance gate, advanced technologies, fire alarm
- Outdoor Spaces: Garden, Terrace,… You are living more at home, so, get it as you want it!
- Swimming pool (size,…) Sport, social life and good eating habits are the best way to keep good health.
- Size of the property corresponding to your taste. You got it, not too small, not too big.
- Natural light
- Size of Sleeping rooms
Have a look at our detailed ranking form in pdf and start now the ranking of all your potential homes for retiring to Spain.
Read our complete article on that subject: How to find the perfect home to retire to Spain?
Our downloadable pdf form for ranking your home to retire to Spain
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Is it legal to rent your property on short term leases?
Most of the times, if you bought your Spanish holiday home, you buy it for yourself. But yes, we have to admit it, there are costs associated with a second home. That’s why many of our customers, after a few years rent their properties. The regulation is different in each region of Spain, that is why it is strongly advised to check it with a local legal adviser. Don’t hesitate to check our network for real estate lawyers in Spain.
Another point is that if you want to rent your property, you need a property management company to assist you. We will cover this subject in detail in our next article.
Have a quick look at the different articles we wrote on that subject:
Tourist rental in Spain: What is it? Is it legal?
An update on the short term rental regulation in Andalusia
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Visit properties at different time of day
Ideally at different times of the year as well but this one is more difficult. What we mean by that is that some villages are active only during the summer months and are dead in the winter months. That’s why, if you want to retire there, it’s better that you know in advance that you won’t find an open restaurant in November.
The same idea is to visit your property at different times of the day and the week. We all know those calm pedestrian streets in the old city centres. In the morning, it’s calm… From time to time it’s calm even in the afternoon and in the evening. But, for the same price, you get a lot of activity in the evening as bars open their doors for the evening.
So, check it, it doesn’t cost a lot.
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A technical survey of your Spanish property could be a nice-to-have
This is surely the case if you work on your own, without a property hunter. You don’t have a technical background, you don’t know anything about renovation, this could be a very wise decision before pouring all your savings into that dream property. Our partner developed a network of Surveyors covering all Spain, don’t hesitate to ask for a survey.
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How do our partners help you with those first steps?
We have a local mortgage broker dedicated to getting mortgages for foreigners. Ask for a free mortgage quote.
Our property hunters are there to assist you to find the perfect property more on that in the 3rd article: “How should you search for your dream property?”
With our team of more than +100 local real estate partners, HowtobuyinSpain helps foreigners to buy real estate in Spain.
The experts from our network are active in all the fields you need:- Property finders
- B&B
- Lawyers
- Tax
- Architects
- Money Transfer
- Mortgage
- Holiday rental management
- Insure your Spanish property
- Property survey
- Renovation
Would you like to read further?Last year we wrote detailed property buyers guides custom made for any nationality. Here are our FREE pdf property buyers’ guides written for all the foreign nationalities looking to buy in Spain: Click on your country flag, you will find your pdf report at the end of each article.
This was the third article of our new series “Our complete guide to buying your property in Spain” in the final article, we will cover what you need to know as a real estate owner in Spain.Looking for an expert in Spain? Ask us directly!Stéphane Senior analyst and strategist at HTBISCheck the full HTBIS team here
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]]>Reading time 12 minutes. Use our table of content for a quick read.Last Updated on 20/08/2024 by STEPHANE
Click on any flag to get an automatic translation from Google Translate. Some news could have an original translation here: News Nouvelles Nieuws Noticias Nachrichten
The ultimate Barcelona 2024 America’s Cup guide
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What is the America’s Cup?
The America’s Cup is the world’s oldest and most prestigious sailing race, often referred to as the “Formula 1 of sailing.” First held in 1851, it is a high-stakes competition where the best sailors and most technologically advanced yachts worldwide compete to win the coveted trophy. It takes place every 3 to 5 years. Between two competitions, teams invest massively in training and Research & Development to develop new more efficient yachts.
The 37th America’s Cup, or AC37 in short, is set to take place in Barcelona from the 22nd of August to October 2024. It will feature a strong lineup of 5 contenders aiming to challenge the defending champion: Emirates Team New Zealand which already has its seat for the final.
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Discover all you need to know on the America’s Cup in Barcelona, our 2 minutes video
Would you like to watch this video in your own language? Click at the bottom right of the video on “cc” to get subtitles in your language.
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Why is the America’s Cup so appealing worldwide?
Cutting-Edge Technology
The America’s Cup showcases the latest developments in yacht design and technology. The boats used, like the AC75 and AC40, are marvels of engineering, capable of “flying” above the water at incredible speeds. Watching these high-performance yachts is thrilling, similar to watching advanced racing cars in action.
Intense Competition
The America’s Cup is not just about speed; it’s about strategy, skill, and teamwork. The races are closely fought, and the stakes are high. Each team, backed by significant financial and technological resources, fights for national pride and glory. Of course, as many races are held during 2 months, the suspense is increasing at every round of the competition.
Rich History and Prestige
Winning the America’s Cup is a significant achievement in the sailing world. It has a rich history of intense rivalries, especially between the United States and challengers from other countries. This historical significance adds to the event’s allure and prestige.
NAPLES – APRIL 20: the catamaran of team races during the america’s cup world series competition on April 20, 2013 in Naples
Global Spectacle
The America’s Cup is a global event that attracts attention from all over the world. It is held in beautiful coastal cities, providing stunning backdrops for the races. This makes it not only a sporting event but also a visual spectacle.
Community and Culture
The America’s Cup brings together communities and cultures. Host cities like Barcelona transform into vibrant hubs of activity, offering numerous events, exhibitions, and social gatherings. It’s a celebration that goes beyond the races, providing something for everyone.
Innovation and Sustainability
The America’s Cup pushes the boundaries of innovation, not just in yacht design but also in promoting sustainable practices. This aligns with the growing global emphasis on environmental responsibility, making the event relevant and forward-thinking. In essence, the America’s Cup is appealing because it combines advanced technology, intense competition, a rich history, and a sense of global community. Whether you’re a sailing enthusiast or someone who enjoys thrilling sports and spectacular events, the America’s Cup has something exciting to offer.
NAPLES – APRIL 20: the catamaran of team races during the america’s cup world series competition on April 20, 2013 in Naples
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History of the America’s Cup up to nowadays
The America’s Cup, established in 1851, is the oldest international sporting trophy. Initially known as the “R.Y.S. £100 Cup,” it was awarded by the Royal Yacht Squadron for a race around the Isle of Wight. The winning yacht, “America,” led to the trophy being renamed the America’s Cup (Wikipedia) (Encyclopedia Britannica). For many years, the competition was primarily between the United States and other challengers from around the world, who sent yachts to represent their countries. The New York Yacht Club (NYYC) dominated the competition, successfully defending the cup from 1870 to 1980, establishing the longest winning streak in sports history: 25 victories (Wikipedia).
The new competition format launched in 1983
In 1970, the format began to evolve. Before this, the defender (usually the NYYC) could choose its yacht on the morning of each race, which provided a significant advantage. This practice was challenged and led to changes aimed at greater fairness. The 1983 America’s Cup was a pivotal moment when Australia II, with its innovative winged keel, won the Challenger Series and defeated the defending NYYC’s yacht. This victory ended the NYYC’s 132-year winning streak and led to significant changes in the competition format (37th America’s Cup) (Wikipedia). The current format, established post-1983, has the defending champion automatically qualifying for the final match, where they compete against the winner of the Challenger Selection Series. This structure ensured a more competitive environment and removed the previous “green card” advantage that allowed the American defender to always be in the final race without preliminary competition (37th America’s Cup) (Encyclopedia Britannica). For more detailed information on the history and evolution of the America’s Cup, you can explore resources such as the America’s Cup official website, Britannica, and Wikipedia. In 2024, the Louis Vuitton Cup (Challenger Selections Series) will determine which team will face the defender Emirates Team New Zealand.
The America’s Cup: a question of Honour and the role of major patrons
Prestige and Honour
The America’s Cup is not just a sporting event; it is a competition steeped in prestige and honour. Winning the America’s Cup is a significant achievement in the sailing world, symbolizing technological superiority, strategic acumen, and exceptional sailing skills. Historically, it has been a matter of national pride, with countries investing heavily to bring the cup home. The intense rivalry, especially between the US and other nations, has made it a prestigious prize that transcends mere competition, embodying national pride and maritime excellence.
Financial Demands and Major Patrons
Competing in the America’s Cup requires substantial financial investment, often necessitating the support of wealthy patrons or corporate sponsors. The development, construction, and maintenance of high-performance yachts like the AC75 and AC40 involve cutting-edge technology and significant research and development (R&D) costs. Here’s why big patrons are essential: high costs of R&D and Innovation, operational and logistical expenses and marketing and promotional activities.
NAPLES – APRIL 13: the catamaran of team races during the america’s cup world series competition on April 13, 2013 in Naples
Who are the winners of the latest editions of the America’s Cup?
The winners of the last five America’s Cup editions are as follows:
- 2021: Emirates Team New Zealand (Royal New Zealand Yacht Squadron) defeated Luna Rossa Prada Pirelli (Circolo della Vela Sicilia) with a score of 7-3. The event took place in Auckland, New Zealand.
- 2017: Emirates Team New Zealand (Royal New Zealand Yacht Squadron) triumphed over Oracle Team USA (Golden Gate Yacht Club) with a score of 7-1. The event was held in Bermuda.
- 2013: Oracle Team USA (Golden Gate Yacht Club) narrowly defeated Emirates Team New Zealand (Royal New Zealand Yacht Squadron) with a score of 9-8. The event took place in San Francisco, USA.
- 2010: Oracle Team USA (Golden Gate Yacht Club) defeated Alinghi (Société Nautique de Genève) with a score of 2-0. The event was held in Valencia, Spain.
- 2007: Alinghi (Société Nautique de Genève) won against Emirates Team New Zealand (Royal New Zealand Yacht Squadron) with a score of 5-2. This event also took place in Valencia, Spain.
These victories highlight the competitive nature and evolving technology in the prestigious sailing competition, with New Zealand and the USA being prominent contenders in recent years. -
How did Barcelona win the organisation of the AC37?
Barcelona’s sailing legacy and the America’s Cup
Barcelona, renowned for its maritime heritage and coastal allure, has hosted numerous significant maritime events, enhancing its global reputation in the maritime community. Notable events include the sailing competitions of the 1992 Summer Olympics, the Barcelona World Race, and various editions of the Salón Náutico Internacional de Barcelona. Additionally, the city has served as a key stopover in the Volvo Ocean Race and has hosted pre-regattas for the America’s Cup. These events, among others, underscore Barcelona’s pivotal role in international maritime activities. Barcelona has many marinas in the city, the biggest and most well-known is the Marina Port Vell and of course, it has a yachting club, the Royal Nautic Club. Last but not least, the Barcelona sailing school was launched in 1992 after the Olympic Games.
Overview of Barcelona’s history as a host city for major maritime events
- 1992 Summer Olympics (Sailing Competitions): July 25 – August 9, 1992
- America’s Cup Pre-Regattas: Various years
- Barcelona World Race: Inaugurated in 2007 and held biennially
- Salón Náutico Internacional de Barcelona (Barcelona International Boat Show): Held annually since 1963, typically in October
- Tall Ships Races: Hosted in 1992, 2004, 2007, 2013
- Mediterranean Tall Ships Regatta: 2013
- The Volvo Ocean Race (Stopover): June 12-18, 2014
- European Sea Ports Organization (ESPO) Conference: May 28-30, 2008
- Barcelona International Sailing Center Events: Ongoing since its establishment in 2013
The Municipal Sailing Centre is in Barcelona Port Olympic, next to the beach. The sailing school offers various courses – sailing, catamaran, windsurfing, etc.
How did Barcelona win the bid to organize the America’s Cup?
Barcelona was chosen to host the “Louis Vuitton 37th America’s Cup Barcelona” in 2024: marking the first time a New Zealand team has defended the Cup outside their home waters. The decision was made after the Royal New Zealand Yacht Squadron and Emirates Team New Zealand evaluated several potential venues, including Cork (Ireland), Jeddah (Saudi Arabia), and Malaga (Spain), but ultimately selected Barcelona for its robust infrastructure and support from local authorities (37th America’s Cup) according to Wikipedia.
Key Steps in Barcelona’s Winning Bid:
- Candidacy Submission: The process began in late 2021, with Barcelona officially announced as the host on March 29, 2022.
- The bid was supported by a coalition of public and private entities, including the Government of Catalonia, Barcelona City Council, and various local businesses and investment agencies.
- Evaluation Criteria: Factors considered included the city’s maritime infrastructure, historical significance, and the ability to meet the logistical and technical requirements of the event.
- Technical and Logistical Requirements: The event requires extensive infrastructure, including bases for the teams, spectator areas, and support facilities. The AC75 and AC40 class boats will be used, with specific requirements for foiling monohull yachts.
Barcelona offers a plethora of experiences, from shopping on Passeig de Gracia and marvelling at the architectural wonder of the Sagrada Familia to exploring the unique works of Gaudí and savouring delicious Catalan cuisine.
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Our best advice to attend America’s Cup Barcelona 2024 & quick facts
Where is the America’s Cup organized?
The cup is organized in Barcelona, Catalonia, Spain. More precisely, the infrastructure for the yachts and the teams will be in “Port Vell”, in Barceloneta.
When is the America’s Cup 2024 organized?
The cup is organized between the 22nd of August for the first 4 races to October 2024 Here are the schedule and key dates for the 2024 America’s Cup races.
Who’s racing in the AC37?
The defending champion is Emirates Team New Zealand, they will access directly to the final and five contenders will fight for the second place available in the final: INEOS Britannia, Alinghi Red Bull Racing, Luna Rossa Prada Pirelli, NYYC American Magic and Orient Express Racing Team. Check our dedicated section for more on that lower.
How can I buy Tickets for the America’s cup?
Details on where and how to purchase tickets for the America’s Cup events, as well as information on booking tours to enhance the experience. Visit the official ticket page for more information.
The organisation team of the America’s Cup will have other events for the public like interactive displays, high-tech simulators and various educational exhibits.
Aerial view of Barcelona city towards the sea, featuring notable landmarks such as Hotel Arts, Torre Agbar, and the area where the marina and the nautical school are located. This setting perfectly captures the environment for the upcoming America’s Cup Barcelona.
How to watch the America’s Cup if I stay in Barcelona?
If you will be in Barcelona, there are three options:
From your hotel
The best hotels to watch the sea in Barcelona are without doubts:
- Hotel Arts
- Hotel W
From land
The best locations to watch the races from include the Race Village and other prime spots around Barcelona. Not sure you will have full visibility from those spots on the land but of course, here are some strong ideas:
- Barceloneta and high buildings in Barceloneta like Hotel Arts or Hotel W,
- Azul Rooftop restaurant of Romain Fornell in Barceloneta, a few meters from Hotel W,
- Who knows with some binoculars from the Montjuic parc,
- a little further inland but why not try the Guinardo parc.
From sea
All the best spots to attend the America’s Cup in Barcelona: from the best hotels to the best spots on land and of course at sea.
Rent a sailing boat to admire where the action is. List of recommended websites, apps, and other resources for real-time updates and analyses of the America’s Cup events.
How can you follow the America’s Cup from anywhere in the world?
For live streaming, visit America’s Cup Live. Don’t miss those interesting sites to follow results and comments on the America’s Cup:
- America’s Cup Official Website: The official site for the America’s Cup provides the latest news, race schedules, team information, and detailed reports on the races. It’s an excellent resource for official announcements and updates directly from the organizers.
- Yachting World America’s Cup Section: Detailed articles, news updates, and expert analysis on the America’s Cup.
- Sail-World America’s Cup News: Extensive coverage including news, team updates, and technical insights.
- Scuttlebutt Sailing News America’s Cup: Latest news, event schedules, and commentary on the America’s Cup.
- BBC Sport Sailing: News, features, and updates on major sailing events, including the America’s Cup.
- Scuttlebutt Sailing News: This site offers extensive coverage of the America’s Cup and general sailing news, including updates, detailed race reports, and insightful articles.
- Sky Sports Sailing: Sky Sports also features articles and updates on the America’s Cup, including team announcements, race results, and expert analyses.
- CupInfo.com: This site offers in-depth coverage and historical insights into the America’s Cup, including details about the Prada Cup and Louis Vuitton Cup. It’s a valuable resource for understanding the technological advancements and strategic elements of the competition.
- Sailing Today with Yachts & Yachting: This publication provides a mix of current sailing news, including America’s Cup updates, as well as practical sailing advice and boat reviews.
Recommendations for must-see attractions and activities in Barcelona to enjoy while attending the America’s Cup.
- Explore top attractions in Barcelona from Lonely Planet.
- Have a look at the official tourist office desk of Barcelona.
- Last but not least, here is the official agenda of exhibitions for Barcelona in 2024.
5 must see monuments in Barcelona: Palau Musica, Casa Batllo, Montjuic Hill, Casa Mila, Mercat del Born,…
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Participating Teams, yachts and Racing formats
Participating Teams and Sailors
The 37th America’s Cup, set to take place in Barcelona in 2024, features a strong lineup of contenders aiming to challenge the defending champions, Emirates Team New Zealand. The teams competing are:
- Emirates Team New Zealand (Defender) – Representing the Royal New Zealand Yacht Squadron.
- INEOS Britannia – Representing the Royal Yacht Squadron, this British team is the Challenger of Record and is responsible for organizing the Louis Vuitton Cup.
- Alinghi Red Bull Racing – Representing the Société Nautique de Genève from Switzerland, this team is known for its innovative approaches and competitive spirit.
- Luna Rossa Prada Pirelli – Representing the Circolo della Vela Sicilia from Italy, this team has a strong history in America’s Cup competitions.
- NYYC American Magic – Representing the New York Yacht Club from the USA, this team brings a blend of tradition and modern sailing excellence.
- Orient Express Racing Team – Representing the Société Nautique de Saint-Tropez from France, this new team aims to make a significant impact with advanced technology and a strong sailing squad.
Here are the teams taking part in the America’s Cup in Barcelona
These teams will compete in the Challenger Selection Series, known as the Louis Vuitton Cup, which will determine who will face Emirates Team New Zealand in the final America’s Cup Match. The event promises intense competition with teams utilizing the latest AC75 foiling monohull yachts, which are known for their speed and advanced design. Don’t miss the interesting article Discovering the 37th America’s Cup teams detailing insights into teams and preparations written by Leigh Rose in Yachtingnews.com Sailingworld.com has an interesting blog section with newsflow on the America’s Cup as well here.
The High-Performance AC75 and AC40 Yachts for America’s Cup 2024
All teams will sail with both yachts.
AC75 Yachts
The AC75 is a state-of-the-art foiling monohull yacht designed specifically for the America’s Cup. These yachts are equipped with advanced technology to enhance their performance:
- Foiling Technology: According to the America’s Cup website, AC75 yachts utilize twin canting T-foils which lift the boat above the water, drastically reducing drag and enabling speeds of up to 50 knots (approximately 93 km/h). The larger foils provide quicker lift and more stable flight.
- Design and Crew: The famous website Yachting World explains that the updated Version 2 of the AC75 Class Rule includes larger foils, lighter weight, and upgraded onboard electronics and software systems. The crew size has been reduced from 11 to 8, allowing for the return of cycle power for certain operations.
- Performance: These yachts are designed to be fast and agile as Sailweb details, making use of a double-skin mainsail that forms a wing with the D-shaped mast, creating the necessary power for foiling. They are expected to reach impressive speeds, even in relatively light winds.
Great Bay, St. Maarten, Netherlands Antilles-June 22, 2013: Former America’s Cup yacht, Canada 2, picks up wind and gives the tourists and crew a thrilling cruise off the coast.
AC40 Yachts
The AC40 is a smaller, versatile version of the AC75, used for various purposes including training and competition in the America’s Cup World Series, Youth America’s Cup, and the Women’s America’s Cup:
- Sustainability and Design: The AC40 is one of the first America’s Cup yachts to feature a hybrid electric motor according to Sailing World, highlighting a commitment to sustainability. These boats are built by McConaghy in China, with key components provided by Emirates Team New Zealand.
- Versatility: America’s Cup explains that the AC40 serves multiple roles, including as a test platform for teams to develop and trial new concepts before applying them to the AC75. For competitive events, they are returned to a strict one-design configuration to ensure fair competition.
- Performance: Yachting World confirms the impressive speed the yachts can reach: the AC40 can achieve high speeds, with capabilities reaching up to 30 knots upwind and over 40 knots downwind. They are designed to perform well in a variety of wind conditions, making them ideal for training and competition.
NAPLES – APRIL 13: the catamaran of team races during the america’s cup world series competition on April 13, 2013 in Naples
The Racing Format
Explanation of the race structure, including preliminary regattas between challengers, Challenger Selection Series, and the final match The top four teams will race in a first-to-five-points Semi-Final, with the two winners advancing to the Final Match Race. The winner of the Louis Vuitton Cup, the team to first score seven points, will face Emirates Team New Zealand, the Defender of the Louis Vuitton 37th America’s Cup.
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How is Barcelona preparing itself for the America’s Cup?
Barcelona’s Sailing Scene: Clubs, Harbours, and More
Real Club Náutico de Barcelona and the harbour of Barcelona “Port Vell” are at the centre of the organisation of the America’s Cup in Barcelona. Many initiatives have been taken to welcome the America’s Cup.
Transformation of the Port Vell in Barcelona to welcome the America’s Cup
According to the website of the port of Barcelona, a big remodelling of the port will take place at the sailing port of Barcelona. Up to 20 actions have been launched in Port Vell worth 120 M€. Unlike other editions, no new infrastructures are being built: the existing ones are being modernized and transformed.:
Up to 20 actions have been launched in Port Vell worth 120 M€. Unlike other editions, no new infrastructures are being built: the existing ones are being modernized and transformed. Image source: Port de Barcelona
The America’s Cup impulse to transform Port Vell
- Rehabilitation of the Nova Bocana seawall
- Construction of the “Trencaones” promenade
- New Mirador building
- Adequacy of the Barcelona Nàutic Center’s spaces
- Nautical bus service
- Urbanization of the esplanades “Nova bocana”
- Restoration “tinglados” Moll Oriental
- Sant Sebastià breakwater
- Reform of Spaces Club Natació Barcelona
- New spaces for the Nautical Institute
- Remodelling of the fishing area – Llotja
- America’s Cup Experience – former IMAX
- Cinesa demolition
- Maremagnum remodeling
- Reform of the Aquarium
- Rehabilitation of Portal de la Pau
- Urbanization of the Drassanes Wharf
- Transfer of operations from Barcelona Nord to Adossat
- Renovation of the tower of Jaume I
- Remodeling of World Trade Center Barcelona
Picture of the Nova Bocana seawall before rehabilitation, Barceloneta, Barcelona
Community engagement and volunteer programs for the America’s Cup
The America’s Cup emphasizes community engagement and volunteerism to ensure event success and enhance its impact on the host city. The AC37 Volunteer Programme aims to recruit 2,300 volunteers from diverse backgrounds, known as “Team B,” who will take on roles ranging from supporting the America’s Cup Trophy tour to promoting sustainability as “Green Angels”.
Volunteers must commit to specific shifts and undergo thorough training to effectively manage responsibilities such as spectator zones and media operations. This comprehensive approach ensures a well-prepared volunteer force.
These programs enhance community engagement and event success by fostering local pride and offering skill development opportunities. Effective volunteer management, focusing on recruitment and retention, is crucial for seamless event execution.
Other initiatives like engagement with schools and educational programs are expected and impact youth, including programs to introduce young people to sailing and marine sciences
Environmental and Sustainability Efforts
Different measures are taken to ensure an eco-friendly America’s Cup and efforts to promote environmental awareness through the competition
Diverse initiatives are aimed at raising environmental awareness among participants and spectators of the America’s Cup.
Other long-term structural city changes you will notice in Barcelona
Barcelona is making significant strides in urban development with several key projects aimed at enhancing sustainability, inclusivity, and innovation. Here are the major initiatives:
- La Rambla renovation: Barcelona is undertaking a major renovation of La Rambla, one of its most famous streets, to make it more pedestrian-friendly and culturally vibrant. The plan includes widening sidewalks, increasing green spaces, and enhancing accessibility to create a more inviting environment for both residents and tourists.
- Green initiatives in the Eixample district: Barcelona is transforming the Eixample district through the Superblock plan, which aims to convert one-third of the district’s streets into pedestrian-friendly green spaces. This project involves the creation of green hubs and large public squares, reducing car lanes, and increasing areas for walking, cycling, and leisure. By 2030, the initiative aims to add 33 kilometers of pedestrian-friendly roads and 6.6 hectares of new urban green areas, significantly improving air quality and public spaces in the district (Dezeen) (World Economic Forum) (Ara).
- 22@ Innovation district: The 22@ project in the Poblenou area continues to evolve, transforming 200 hectares of former industrial land into a hub for technology and innovation. The district integrates residential, office, and recreational spaces, promoting a mixed-use urban fabric that balances economic activities with sustainable living. The focus is on enhancing inclusivity, preserving cultural heritage, and supporting diverse economic activities (Barcelona City Hub) (Web de Barcelona) (Barcelona Catalonia).
- Poblenou district renovation: Part of the broader 22@ initiative, the Poblenou renovation aims to create a more inclusive and sustainable neighborhood. The project focuses on creating a mixed-use urban fabric that supports a diverse range of economic activities, improves environmental quality, and enhances the overall quality of life for residents. This includes the development of new public spaces and green areas to foster community interactions and local commerce (Barcelona City Hub) (Barcelona City Hub).
- Camp Nou renovation: The renovation of Spotify Camp Nou is progressing well, with the goal of reopening by the end of 2024. Significant milestones have been achieved, including the installation of pillars and beams for the third tier and the refurbishment of the first and second stands. The renovation will increase the stadium’s capacity to approximately 105,000 spectators and incorporate advanced technological features for improved fan experience. Key updates include the construction of a new parking lot, a future store, and a cafeteria near the Grandstand area (Official FC Barcelona Website) (Mundo Deportivo) (Mundo Deportivo). The project aims to balance modern facilities with environmental sustainability, ultimately enhancing both the stadium’s functionality and its integration with the city.
Barcelona’s preparations for America’s Cup 2024, including infrastructure enhancements, top-notch facilities, and public spaces, while listing other city developments.
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What positive long-term impact will the America’s Cup have on Barcelona?
Will it be as big as the one for the Olympic Games organized in 1992?
Yes, for sure. There was a before and after moment for Barcelona when we talked about the organization of the Olympic Games in 1992. The event, officially known as the Games of the XXV Olympiad, took place from July 25 to August 9, 1992. This was a significant event for Barcelona and Spain, marking the first time the country hosted the Summer Olympics. The games were notable for their organization, the introduction of professional athletes in basketball, and memorable moments such as the performance of the “Dream Team” in basketball.
Infrastructure development for the 1992 Olympic Games on Barcelona
- Beaches and Waterfront Development
Before the Olympics, Barcelona had little accessible beachfront. The Games led to the creation of 3 kilometers of new beaches by importing sand and redeveloping the coastline. This transformation reconnected the city with the Mediterranean, creating vibrant leisure areas that are now iconic to Barcelona. The construction of the Passeig Marítim promenade further enhanced the city’s appeal, making it a major attraction for both locals and tourists. - Olympic Village (Vila Olímpica)
The development of the Olympic Village was crucial in transforming the Poblenou district. This area, once filled with industrial warehouses and factories, was rejuvenated into a modern, trendy neighborhood. The removal of the coastal railway and the creation of the Olympic Port turned previously neglected areas into bustling hubs of activity, with marinas, shops, and restaurants. - Montjuïc Area Development
Montjuïc was significantly upgraded with the refurbishment of the Olympic Stadium and the construction of new sports facilities like Palau Sant Jordi. This area became a central hub for the Games and continues to be a key location for sporting and cultural events in Barcelona. The Olympic Park on Montjuïc is now a major tourist attraction, featuring the Magic Fountain, which was restored for the Games.
These developments illustrate the profound impact the 1992 Olympics had on Barcelona, transforming it into a modern, vibrant city with enhanced infrastructure and a strong global presence. The city’s ability to successfully host the America’s Cup in 2024 will likely continue this legacy of leveraging major events for urban and economic revitalization.
A chart is better than a thousand words: watch this chart of yearly tourism to Barcelona between 1992, with 1 million tourists, to now, with 10 million tourists per year… Yes, same city 🙂
A line graph titled “Number of tourists visiting Barcelona per year” shows a steady increase from 1993 to 2023, peaking at approximately 10 million visitors in 2023, coinciding with the excitement surrounding America’s Cup Races. By the way, every time we can, we love to swim in the Olympic pool at Montjuïc Park.
By the way, every time we can, we love to swim in the Olympic pool at the Montjuic Park.
Outdoor swimming pool with people swimming and lounging around, situated in a spacious area with a view of the cityscape in the background. Tall stadium lights are positioned around the pool, and you can almost imagine the excitement of America’s Cup Barcelona 2024 unfolding nearby.
Will it be the same after organising the America’s Cup in Barcelona?
Tourism and Economic Impact on Barcelona
Of course, everybody expects economic benefits and tourism boost from hosting the America’s Cup in the short term.
Long term, the America’s Cup stands as the third largest television event globally, surpassed only by the Olympic Games and the FIFA World Cup. The competition is anticipated to attract a television audience of approximately 1.2 billion viewers. Additionally, live-streaming audiences may exceed 10 million, supplemented by viewership on various social media platforms. Preliminary tests have shown that hundreds of millions of users are likely to follow the competition through these channels, further amplifying the event’s global reach and impact. Source
The America’s Cup will have profound long-term impacts on Barcelona’s tourism sector. This influx of visitors and international attention is poised to boost the local economy, create jobs, and stimulate investments in the tourism sector.
Maritime infrastructure and continued community engagement post-America’s Cup
The impact of the 1992 Olympic Games on Barcelona was huge, from developments in beaches, Olympic Village, and Montjuïc area…
Hosting the America’s Cup is set to leave a substantial legacy for Barcelona, driving several infrastructural and urban development initiatives. The city aims to utilize the event to accelerate the modernization of maritime and urban infrastructure, benefiting both residents and visitors. These projects include upgrading port facilities, enhancing transportation networks, and developing new public spaces that integrate with Barcelona’s historic landscape. Such enhancements are poised to support increased tourism, stimulate local businesses, and improve overall quality of life for residents.
Additionally, the event fosters community engagement through educational programs, sailing initiatives, and environmental projects promoting sustainable practices, ensuring the local community remains actively involved and benefits from the event’s legacy.
Enhancing Barcelona’s global maritime profile
A few funny facts about the Olympic games and the America’s cup in Barcelona
Hosting the America’s Cup elevates Barcelona’s profile in the global maritime community, enhancing its visibility and prestige as a premier destination for international sailing events. This enhanced reputation is expected to attract future maritime and sporting events, boost tourism, and establish Barcelona as a hub for nautical innovation and excellence. The America’s Cup positions Barcelona alongside other iconic maritime cities, fostering partnerships and collaborations that can lead to further economic and cultural opportunities, attracting investment, driving economic growth, and reinforcing Barcelona’s status as a leading global city.
- Beaches and Waterfront Development
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How could you, yourself, enjoy the vibrant city of Barcelona as we do?
Barcelona’s real estate market offers an attractive investment opportunity for foreigners, thanks to its vibrant culture, stunning architecture, and strategic location on the Mediterranean coast. The city’s diverse neighbourhoods cater to various tastes, from the historic charm of the Gothic Quarter to the modern allure of Eixample. Foreign buyers are drawn to Barcelona for its lifestyle, excellent infrastructure, and strong rental market, making it a profitable venture for both short-term and long-term investments.
Foreigners can choose to buy properties either for themselves, enjoying the exceptional quality of life Barcelona offers, or for renting it out for a nice yield, capitalizing on the city’s strong demand for rental properties. Additionally, this approach provides the potential for upside in property values over the long term.We have many experts: property hunters, lawyers, mortgage advisors and tax advisors ready to assist you in buying a property in Barcelona. Depending on location, the current state and the property itself, you should pay between €3,000 and €5,000 per square meter.
Have a quick look at some other deals we did for our customers:
Don’t miss our interesting reading if you want to compare the potential returns of European cities vs Barcelona: What return will you make on your Spanish property?
Stéphane Senior analyst and strategist at HTBIS Stéphane, with over 20 years of experience in real estate, finance and entrepreneurship, is the co-founder of www.howtobuyinspain.com. With an extensive network of local partners in Spain, his deep commitment to the real estate sector combined with strong analytical skills and a problem-solving mentality have fueled his success. Constantly eager to learn and passionate about teaching, Stéphane believes in the power of knowledge sharing to master any subject. Check the full HTBIS team here
America’s Cup Barcelona FAQ
What is the America's Cup?
The America's Cup is the oldest international sailing competition, first contested in 1851. It features teams from around the world competing in high-performance yachts.
When and where is the America's Cup 2024 taking place?
The America's Cup 2024 will take place in Barcelona, Catalonia, Spain from August to October 2024. This historic city will host numerous events and races throughout the competition.
Which teams are participating in the America's Cup 2024?
Teams competing include Emirates Team New Zealand (the last winner) and contenders: INEOS Britannia, Alinghi Red Bull Racing, Luna Rossa Prada Pirelli, NYYC American Magic, and Orient Express Racing Team.
What kind of boats will be used in the America's Cup 2024?
The America's Cup 2024 will feature high-performance AC75 and AC40 yachts, known for their cutting-edge technology and speed.
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]]>Reading time 3 minutes. Use our table of content for a quick read.Last Updated on 05/06/2024 by STEPHANE
Click on any flag to get an automatic translation from Google translate. Some news could have an original translation here: News Nouvelles Nieuws Noticias Nachrichten
Murcia property investment: our 3 case studies
Our two local property finders, Katerin and Caroline, are proud to share with you their last property searches.
Some of our last missions
A “retirement home” in the countryside of Murcia
- Buyer: a couple from Hampshire, England
- Property: This is a semi-detached property with great views of the surrounding countryside.
A desirable family home with beautiful palm trees, a well-built property, which was a classic farmhouse.
It has 3Bed, 1 Bath and one Pool
It is set in a plot of 3,500 m2 which has many orchards: almond, olive, lemon and orange, trees and also large palm trees.
- Neighbourhood: A few more km to the large town of Fuente Alamo and 20 minutes to the beaches of Mazarron, Isla Plan and Azohia., 30 minutes to the towns of Cartagena and Murcia and 20 minutes to the international airport of Corvera.
- Goal: retirement home in the countryside of Murcia.
- Budget: € 67,000
A “retirement home” in the countryside of Mazarrón
- Buyer: a couple resident in Spain bought a larger house with land to cater for their dogs.
- Property: A detached farmhouse fully walled and fenced with 300 m2 built set in a plot of 1500 m2,
3bed, 2bath (one ensuit), annex, pool
- Neighbourhood: It is in a great location with views of mountains, Countryside and Almond groves.
It is 20 min to the Corvera international airport, 15 min from the nearest golf course 5 min from Local village with shops bars medical center. 20 min to the sandy beaches of Mazarron.
- Goal: retirement home in the countryside of Murcia.
- Budget: € 90,000
A “beach home” in the Region of Murcia
- Buyer: a couple resident in Spain moving from the countryside to the beach
- Property: A large corner detached house in Bolnuevo, Mazarrón
The house, built with passion, by a French architect, for its own use, taking into account all safety measures and services.
4 bedrooms, 2 baths, private garage & storage
- Neighbourhood: in an amazing location a walk away from the coast and beaches with views of the Mediterranean and mountains from the master bedroom and from the sitting room.
What could be more idyllic than waking up and having breakfast in your balcony while you enjoy breath taking sea and mountains views!
- Goal: Enjoy life
- Budget: € 189,000
Discover the must do activities of the Costa Calida
This article is written by Katerin and Caroline, our property finders in Murcia.
If you want to read more on Murcia, here are two interesting articles:
Check the full profile of Katerin and Caroline, our Property hunter in Murcia
Find a property finder anywhere else in Spain within our network
Looking for a property hunter, a lawyer, an architect,… a local expert in Spain? Ask us directly!
Check the full team of HTBIS here
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]]>The post Are bank repossessions in Spain an attractive investment opportunity? appeared first on How to buy in Spain.
]]>Reading time 7 minutes. Use our table of content for a quick read.Last Updated on 21/05/2024 by STEPHANE
Click on any flag to get an automatic translation from Google translate. Some news could have an original translation here: News Nouvelles Nieuws Noticias Nachrichten
Is it too late to invest in bank repossessions properties in Spain?
Less hassle and a nice return?
Many of our readers told us that, yes, you get a return with “buy to let” properties in Spain but you have to manage your property and all the issues going with it, so they asked us: are you aware of any product to get “smart exposure” to the real estate market in Spain? Many others asked us, how can I invest in bank-repossessed properties in Spain?
We found a fund investing only in bank-repossessed properties in Spain and checked it for ourselves so that’s why we wanted to share the results of our work with you.
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Why did we like the fund and this opportunity?
- The management team has 10 years of experience and a track record
- Competitive edge: Thanks to their huge geolocalized database of prices’ history with properties’ characteristics: the ones they bought and sold, all the bank properties sold for the last years, all the properties sitting on the market… They have a very accurate idea of what is the “fair” price of any property when bidding for a portfolio. Appraisal work and an on-site visit will do the rest of the job.
- The Spanish legal system: “creates” this situation and doesn’t give a lot of choices to the Spanish banks for managing their repossessed properties while keeping a good image.
- It is very costly for banks to hold properties on their balance sheet: both in terms of solvency ratio and yearly costs (tax, insurance, community costs, maintenance costs,…)
- Opportunity should stay for many years: there are not enough players to dry up properties from the Spanish banks’ balance sheets. Do you remember, it all started in 2008!
- Clear investment process: this is a very data-driven and systematic investment approach with many verification steps.
- Allows to buy real estate on the Spanish market “at a discount”. As all properties are bought with a big discount, the risk (if any) to the real estate market prices is much lower than any real estate investment: whenever a property is sold, the discount is ‘locked” for the investor which reduces his future risk even more, should the real estate market go down at any time in the future.
- Last but not least, no hassle as you would have with any direct real estate investment anywhere in the world.
Of course, as it is a fund, investors should check their tax situation for any investment.
As you could guess, this kind of fund is for well-informed (and wealthy) investors able to manage and diversify their risks. This is not a recommendation to invest or any advice regarding this investment opportunity. That is why we don’t advertise the name of the company managing this fund but if you want to go further with your due diligence, you can contact them by filling out the form at the end of the report.
Here is what we found out:
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A fund buying bank repossessions directly from Spanish banks
The fund pursues a unique investment strategy of recurrently:
- Acquiring,
- repossessing and
- reselling residential properties in well-populated Spanish regions.
The properties may be subject to adverse possession or “Squatters”, which is resolved by reaching an amicable financial settlement with the occupant. If this doesn’t work, the fund will start a legal procedure and this will take a maximum of 3 years to get full ownership. 90% of the time the fund will get an agreement with the current squatters.
The Fund will cherry-pick properties among portfolios of occupied residential assets offered by financial institutions.
Example of a Bank repossession in Spain in the portfolio
An institutional manager based in Madrid
The fund manager is active for more than 10 years in this market.
Of course, as the fund manager is well known in Spain, they get portfolios all the time from the biggest banks in Spain.
The assets are only offered to a select group of reputable buyers, like the institutional manager managing the fund, due to the complex nature of solving potential adverse possession situations.
They told us that unique sourcing and strict discipline enables the Fund to buy at very deep discounts vs the current market price as they have to get the property back to the market (before tax expenses), but yes that’s why there is a nice margin left for the buyer, not bad!
The Fund Manager will partner with the leading Spanish-occupied real estate specialist which employs a socially responsible repossession procedure based on mutual agreement Ethical conduct, compliance and strict adherence to legislation are essential.
Financial settlement occupants are offered financial compensation in return for vacating the property voluntarily.
The Luxembourg fund will reinvest in new properties continuously
The fund has an open-ended structure, which means that it will stay open as long as the opportunity is present for the fund manager, and is full AIFM regulated and registered in Luxembourg as a “Reserved Alternative Investment Fund” (RAIF) which allows the fund to invest directly in real estate.
The proceeds from sales will be redeployed to buy new portfolios.
The average holding period of a property is 18 months.
Win-win for all the parties involved:
- banks can offload risk assets sooner,
- occupants agree with the manager to relocate thanks to a mutual agreement.
Target Net Return
The open-ended fund was launched in 2021 and targets annual net returns of 8.5% to 11% without leverage in a stagnating housing market. Over time the fund may use limited leverage for enhancing returns to 11% -14%.
The fund manager based in Madrid has been running these strategies since 2011, which is why they could give return targets.
High-demand area’s
The fund will exclusively focus on well-populated area’s which have sufficient transaction volume i.e. no rural area’s. A majority of assets will be located in major cities focused on Spanish citizens, not tourists.
Buffers against capital losses
The fund is buying at very deep discounts, so even after accounting for all costs and taxes, post-COVID real estate prices would have to decline by more than 12% to make a small capital loss, according to the manager. In addition, the Fund is spreading asset purchases over time making it less sensitive to price shocks compared to closed-end real estate funds.
Unique proprietary technology
Each property is appraised by a proprietary big data valuation software, which tracks key features (e.g. price, location, surface, floor, amenities,…) of 25mm references gathered over many years. Each appraisal is also supported by a dedicated team of analysts. In addition, a third party will be appointed to verify the value of the holdings.
Strategy with a track record
The fund manager told us that they did successfully repossessed and resold over 2,500 assets since 2011. Over 90% of historical property portfolios were eventually sold at a profit that was in line with or above the Fund’s target return.
Ethical & socially responsible procedures
Based on reaching a voluntary agreement with occupant(s). No occupant is ever threatened or evicted by any other means except those explicitly approved by banks and the law.
High barriers to entry
This is a niche strategy that is difficult to copy, banks are only willing to sell large portfolios to a legitimate buyer with national coverage who uphold strong compliance standards.
Limited correlation to financial markets
They described this strategy as an alternative investment strategy focused on existing residential real estate (no development).
A specific opportunity existing only in Spain
Due to inertia of legal procedures, the culture of ‘occupants’ and the recovery of a major real estate crisis.
Since the Global Financial Crisis and the ensuing real estate crisis in Spain, the national and regional lenders have unwillingly become large real estate owners.
Unfavourable impact on bank balances sheets
Not only do banks lack the expertise and staff to properly manage real estate, but the assets also have an unfavourable impact on their minimum capital requirements.
Many properties have sat idle on banks balance sheets for years, and in the meantime have become occupied by people that have gained unlawful entry to the property and now live in it for free.
In Spain, it may take years for owners to obtain court approval to evict unauthorised occupants. In 2018 it became possible for natural persons to pursue an “express judicial procedure”, a procedure which can still take months to evict occupants out of their own homes, but this is not the case for owners that are legal entities as banks real estate funds. Despite being very slow, the Spanish judicial system eventually favours the rightful owner.
Spanish banks are still offloading legacy real estate portfolios from the 2008 crisis, as well as annually foreclosing over 25 000 assets based on police data, at least 87 000 homes are subject to adverse possession, although some consultants estimate the real number closer to 100 000.
Another example of a Spanish bank repossessed property
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What is the investment process?
There are 4 steps:
1. Appraisal
The local partner, thanks to reputation and network, has the opportunity to bid on and cherry-pick from hundreds of assets per week from different institutional sellers.
Each asset is appraised by proprietary software that sources data from 20 million assets This value is the market value or minimum selling target, under normal conditions.
Each appraisal is verified by a team of professionals.
2. Acquisition
Next, they apply a strong discount on top of accounting for fees for acquisition, repossession and sale, which leaves a substantial profit margin to the fund.
The local partner is bidding on assets all year round, negotiations with banks may take many months due to aggressive bidding (only a small share of bids are ever accepted). The Fund will never acquire portfolio’s below its ROI threshold In addition we may order a third party appraisal of all the individual assets in a portfolio.
3. Repossession
Each occupied asset is visited by a trained in-house staff member. After identifying the occupant(s), the staff member starts the negotiation.
The selling bank has already initiated a legal eviction process, so the occupant is often more inclined to accept vacating the property rather than risk contact with law enforcement.
If the negotiation doesn’t work (ca 10% of cases) the fund will pursue judicial track
4. Sale
The asset is cleaned, and secured (new lock, fortified doors, alarm) as well as lightly refurbished where necessary.
The fund hires a network of local real estate agents to sell and promote the repossessed assets.
Some assets will already be sold 4 months after purchase, 50 within 16 months and 80 within 2 years
Another building of a Spanish bank repossession from the portfolio
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More on Bank Repossessions in Spain
90% of adverse possession occupancies are resolved through mutual agreement (outside of court)
1. Legal procedure
Usually, a legal eviction procedure is initiated before the acquisition (by banks). In Spain however, this can be a very cumbersome process, taking up to several years. This track is nevertheless pursued to have some leverage in the negotiation process. All processes strictly comply with legal regulations and are approved by the sellers
2. Visit Property
Once the judicial procedure has been initiated, the occupant is notified and visited to explain the situation. Not used to this personal approach, some occupants may already leave. Most leave after negotiating compensation for foregoing a few months of rent (as they know they will otherwise be evicted at some point).
3. Negotiate repossession
More than 90 of the assets are repossessed through mutual agreement, the rest via legal procedures. Banks and funds are unable to pursue this strategy due to the risk of attracting even more occupants to all their empty assets.
Hundred of the negotiators are proprietary staff (none outsourced), specialized in repossessing occupied assets in Spain.
4. Security and refurbishment
Once the property is vacated, it is professionally cleaned, and a fortified door, new lock and alarm system are put in place (to avoid people reoccupying) If needed, some basic painting refurbishment is done, however, the apartments are typically sold in their existing condition (at small discounts compared to fully refurbished or new apartments)
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Attractive economics
Thanks to their sourcing and in-depth experience the Fund expects to perform above average compared to most real estate funds out there.
- The Fund’s asset manager has developed a proprietary underwriting software including over 26 million Spanish real estate references and can make 50 000 daily valuations Parameters for valuation include surface, price, m² geolocation, cadastral reference, building, elevator/garage, time in the market, etc
- AI algorithms are implemented in the decision-making process, however, all valuations are corroborated by at least 2 in-house analysts.
- Target market price as calculated by in-house software valuation analysts The asset is compared to similar assets (based on the above parameters) on the market and sold within the last months, in a small radius.
- Purchase price incl taxes and origination fees typically 35% to 40% below the target market price to account for costs and base case profit margin (per portfolio) of 25%.
- Expected costs include annual property taxes, community fees, repossession charges, refurbishment, alarm, lock and intermediaries (real estate agents).
- ‘Base case’ profit margin is expected to earn 25% to 27% base case on the total investment (cost transfer tax/stamp duty) at SPV level over 2 to 3 years.
- Target market price as calculated by in-house software valuation analysts The asset is compared to similar assets (based on the above parameters) on the market and sold within the last months, in a small radius.
- Excess margin the asset is usually put on the market for 150 of the target price (or 230 of investment) and lowered every 2 to 4 weeks.
- Historically 90 of all portfolios repossessed by the Fund’s asset manager were sold above base case ROIs (and aggregated target prices).
Of course, don’t underestimate potential risks for any (real estate) investment.
Most of the time, even if bank repossessions are occupied in Spain, they are in a good state.
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Here are some of the risks we identified with the fund strategy
- Liquidity: Repossessing some assets in the portfolio may take longer than expected, thereby depressing IRR’s.
- COVID 19 fallout (or further crisis): Increasing public debt and unemployment may negatively impact demand for low-income housing.
- Valuation risk: Risk of overpaying for certain portfolio assets or the condition of the asset appears to be worse than assumed.
- Reputation: Repossessing assets subject to adverse possession is a delicate matter Unfair evictions may lead to reputational damage for anyone involved.
- Refurbishment: Although the assets are expected to be in subpar condition, some assets may be in a poorer state than expected.
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Do you want to know more?
Ask for more due diligence from the manager by sending your contact details directly to the manager. As you understood our disclaimer at the start of this article, every investor is responsible for his own risks and HTBIS does not promote or advise to invest in any specific product. We accept to put you in direct contact with the fund manager by filling this form so we don’t make any advertising for the company. Don’t hesitate to tell them that you read it on HTBIS, they will surely answer your questions with even more details as they did with us. That is how we create value for our readers.
If you want to find a bank property, here is where you should start: Register to our exclusive Spanish bank properties listings and read: Where are the Spanish bank properties for sale?
Remember, the risks are higher if you buy a bank property from a bank. In Spain, furthermore, we would always advise you to work with a lawyer when you buy a property. He will make sure everything is fine. We developed privileged relationships with local lawyers very active with foreigners, don’t hesitate to ask us for a real estate lawyer anywhere in Spain from our network in a specific region. A technical survey of your Spanish property is strongly advised as it is a bank property.
Before buying in any region, have a quick look at all our research on the top 20 Spanish Cities: Everything you ever wanted to know about the top 20 Spanish Cities real estate markets
Looking for an expert in Spain: Lawyer, Architect, Property Hunter, Mortgage? Ask us directly!
Senior Analyst and Strategist at HTBIS
Check the full HTBIS team here
Our FAQ on Bank repossessions in Spain
Is it safe to buy a bank repossession in Spain?
Buying a bank repossession in Spain is difficult as it requires some expertise: valuation, legal, and most of the time the property is occupied by squatters.
How long does it take to repossess a house in Spain?
The law in Spain protects squatters and even more if the owner is a Spanish company.
Can you buy a repossessed house from the bank?
Yes, of course anyone can buy a bank property but pay attention, it is not that easy.
How does bank repossession work?
In Spain, it is a very cumbersome process that takes up to several years. But 3 years should be a maximum.
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]]>Reading time 3 minutes. Use our table of content for a quick read.Last Updated on 24/04/2024 by STEPHANE
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Become the expert!
Spanish real estate terms explained in plain English
Buying a property in Spain is easy. But remember, your first step will be to find a reliable independent lawyer who is specialized in Spanish land and property law. Unless you speak fluent Spanish, you should find a lawyer speaking your mother tongue in Spain.
More on that here: What is the legal due diligence for your Spanish property?
Looking for a property lawyer in Spain? Check all our partners here!
Disclaimer: This glossary’s goal is to explain the meanings of words and it is not to give advice. Any issue should be reviewed by a tax or legal adviser.
Cedula de Habitabilidad
The Cedula de Habitabilidad or Licencia de ocupación is an administrative document that certifies that a dwelling complies with the minimum conditions of habitability provided for in current regulations and is suitable for use as a residence for people.
Read more on Cedula de Habitabilidad: What is the legal due diligence for your Spanish property?
Back to the list of Spanish Real Estate terms
Contrato de Arras
The Contrato de Arras is the private purchase contract called as well Contrato Privado de Compraventa.
It takes place after the Contrato de Reserva. You will need to pay your deposit: 10% of the property within 10 days (including your Contrato de Reserva deposit).
As soon as the necessary legal checks have taken place, you will be required to sign the private purchase contract which will state the full price of the property.
Why is it important? Once you signed it, you are committed to purchasing the property or lose the full 10% if you change your mind.
Read more on Contrato de Arras: The 9 steps to your Spanish Property
Back to the list of Spanish Real Estate terms
Contrato Privado de Compraventa
The Contrato Privado de Compraventa is the same as the Contrato de Arras: it is the private purchase contract of the property. Please read Contrato de Arras for more.
Read more on Contrato Privado de Compraventa: The 9 steps to your Spanish Property
Back to the list of Spanish Real Estate terms
Contrato de Reserva
The Contrato de Reserva expresses your intent to purchase a property. It removes the property from the market, it is the reservation contract.
In general, you will need to pay a holding fee of €3000 to 6000. Funds are held in escrow for 14 to 21 days and you have the time to do checks on the property during that period. At the same time, a purchase contract will be drawn up and legal checks carried out.
Why is it important? This contract is very important, don’t sign without including provisions so you can exit the contract and get your funds back
The cash ideally held by a reliable third party
Read more on Contrato de Reserva: The 9 steps to your Spanish Property
Back to the list of Spanish Real Estate terms
Impuesto sobre Bienes Inmuebles (IBI)
Impuesto sobre Bienes Inmuebles or in short IBI is a local tax any owner has to pay on any Spanish property.
Who has to pay for it? Any owner of a Spanish property, local or foreigner.
How do you know? You’ll get a letter after June of any year but some local authorities don’t send it. You owe this tax
Who is the beneficiary? The tax is payable to your local Town Hall. Those are for infrastructure, waste collection,…
Where can I pay for it? Your local Town Hall, a few of them are available online.
How is the Tax Calculated? The IBI is based on the Valor Catastral. The Valor Catastral can be legally adjusted if needed by any Town Hall.
Our tip: by working with a Spanish real estate lawyer, he will make sure that the previous owner paid for it, if it is not the case, you’ll have to pay for him!
What if your property is empty? You owe the tax!
Read more and find all our tips on Impuesto sobre Bienes Inmuebles: The cost of owning your Spanish property, What taxes do you have to pay on your Spanish property?
Back to the list of Spanish Real Estate terms
Inspección Técnica de Edificios (ITE)
Inspección Técnica de Edificios or in short ITE is an obligation to carry out a Technical Inspection of Buildings if they are old. It falls on the owners. To facilitate this, some City Councils prepare a register of buildings subject to inspection, which is made publicly available for a period of 30 days in the last quarter of the year preceding the start of the corresponding term.
These reports must specifically cover:
- The condition of the structure and foundation.
- The condition of interior and exterior facades, party walls, and other elements, particularly those that could pose a danger to people, such as cornices, projections, overhangs, or decorative elements, among others.
- The state of conservation of roofs and terraces.
- The condition of the building’s general plumbing and sanitation networks.
- The state of existing accessibility elements in the building.
Back to the list of Spanish Real Estate terms
Licencia de obra menor
The licencia de obra menor is a license that you need from the local authorities if you are doing some small renovation works. So, you will never modify the structure of the property with your reforms.
When do you need a licencia de obra menor? Here are a few examples: changing tiles, renovating the plumbing and electrical installation or changing doors or windows are a few examples.
The licencia de obra menor could be required by the local Spanish administration or “ayuntamiento” to undertake these and other projects. Depending on the size of the intervention, we can distinguish between a minor building permit and a major building permit. It is always better to check with your entrepreneur so you won’t have any issues with our neighbours.
How much does a minor building permit cost? Each local authority will decide the value of the building permits. It may be free as some administrations have abolished it.
If you are looking for a renovation team anywhere in Spain, first, check our network of local renovation experts anywhere in Spain.
In the case of this renovation, a licencia de obra menor was needed: A full kitchen renovation in Barcelona.
Back to the list of Spanish Real Estate terms
Licencia de ocupación
The Licencia de ocupación or the Cedula de Habitabilidad is an administrative document that certifies that a dwelling complies with the minimum conditions of habitability provided for in current regulations and is suitable for use as a residence for people.
Read more on Licencia de ocupación: What is the legal due diligence for your Spanish property?
Back to the list of Spanish Real Estate terms
Modelo 210
The Modelo 210 is the form that you will have to fill to pay your national tax that you owe to the Spanish state as an owner of Spanish property as a non resident. In short, it is the Non-Resident Income Tax without permanent establishment or Form 210.
You are renting out your apartment => Quarterly filling, before the 20th of the month following the end of the quarter.
Our Tip: you have items that could reduce this amount, check with your Spanish real estate advisor.
Your apartment is not rented => Yearly filling, before the end of the following year.
Read more and find all our tips on modelo 210: The cost of owning your Spanish property, What taxes do you have to pay on your Spanish property?
Back to the list of Spanish Real Estate terms
Número de Identificación de Extranjeros
The Número de Identificación de Extranjeros or in short NIE is a unique tax identification number in Spain for anyone who isn’t a Spanish citizen. You will need your own NIE number to purchase property and pay necessary taxes! So it’s wise to apply for this as soon as you start looking for properties. You can get it in person in Spain or via a Spanish Consulate if you don’t have time to apply when you are over there. For your spouse as well if you buy together.
Read more on NIE: Your ultimate guide to your NIE number, The 9 steps to your Spanish Property
Back to the list of Spanish Real Estate terms
Registro de la Propriedad
It is the official land registry of Spain.
Read more on Registro de la Propriedad: The 9 steps to your Spanish Property
Back to the list of Spanish Real Estate terms
Valor Catastral
It the official value of a property given by the tax authorities in Spain. National Taxes (Modelo 210) and local taxes (IBI) are calculated with that value.
Read more on Valor Catastral: The 9 steps to your Spanish Property
Back to the list of Spanish Real Estate terms
Need more help?
No worries we have a network of local lawyers speaking your language and Spanish
Your first step will be to find a reliable independent lawyer who is specialized in Spanish land and property law. Unless you speak fluent Spanish, you should find a lawyer speaking your mother tongue in Spain. Check on HowtobuyinSpain.com. More on that here: What is the legal due diligence for your Spanish property?
Looking for a property lawyer in Spain? Check all our partners here!
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]]>The post Mortgage rates in Spain for non residents: March 2024 update appeared first on How to buy in Spain.
]]>Reading time 8 minutes. Use our table of content for a quick read.Last Updated on 09/04/2024 by STEPHANE
Click on any flag to get an automatic translation from Google Translate. Some news could have an original translation here: News Nouvelles Nieuws Noticias Nachrichten
Mortgage rates for non-residents: Spain’s position in the European landscape
Here is our March 2024 update with the latest data on Spanish mortgage rates for non-residents from the European Central Bank
One question we get from our customers nearly daily is: How expensive are the mortgage rates in Spain vs other European countries?
So, we were due to do some work on that and here is the result. At the same time, we took the opportunity to increase our databases and this article will be updated later. Please note that all the charts are interactive and, whenever we update our database, the charts will be updated.
Thanks to our network of local partners, we get the best mortgage rates in Spain if you want to finance your home in Spain. Take 30 seconds to fill this quick form to get the best Spanish mortgage rates as a non-resident.
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Mortgage rates in Spain for non-residents: our 2 minutes video
Would you like to watch this video in your language? Click at the bottom right of the video on “cc” to get subtitles in your language.
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Navigating the Mortgage process as a non-resident in Spain
While many international buyers prefer to purchase their Spanish second home outright with cash, this approach might not always be the most strategic. Even if you have the means for an all-cash transaction, considering a mortgage could unlock a suite of financial benefits. From diversifying your investments and increasing liquidity to optimizing tax efficiencies, the advantages are compelling. Intrigued? We invite you to journey with us through the upcoming sections, where we’ll unveil the nuanced benefits of leveraging a mortgage for your property in Spain—a decision that could redefine your financial strategy.
Securing a mortgage in Spain as a non-resident is a feasible endeavour, though it does come with its unique set of challenges and considerations. Given that the majority of your assets are likely situated outside of Spain, Spanish banks will meticulously evaluate both your personal financial profile and the property in question to mitigate their risk exposure. Generally speaking, the terms offered to non-residents may be more conservative compared to those available to residents. This often translates to less favourable interest rates, stricter borrowing criteria, and a reduced loan-to-value ratio, meaning you might need to provide a larger down payment. Additionally, the process might involve more comprehensive documentation and a longer evaluation period to thoroughly assess the viability of extending credit under these circumstances. Understanding these nuances and preparing accordingly can smooth the path to acquiring your Spanish property.
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Comparing Spanish Mortgage rates with European averages
Spanish vs. European Real Estate financing
Thanks to the detailed database of the European Central Bank that we could import, we could run a thorough analysis of mortgage conditions for all the European countries vs Spain. Before jumping on detailed statistics on different mortgage solutions we looked at general conditions for mortgage rates both in Europe and in Spain.
All Mortgages issued in Spain in January 2024 had an average interest rate of 3.7% (vs 3.1% in January 2023) while all mortgages issued in Europe had an average interest rate of 3.87% for the same period (vs 3.19% in Spain in January 2023).The chart below clearly demonstrates a strong correlation between Spanish mortgage rates and their European counterparts. Both datasets, meticulously compiled by the European Central Bank, serve to monitor financial trends across the region. Historically, from January 2014 to April 2022, Spanish mortgage rates were consistently higher than the European average, marking a more expensive borrowing climate within Spain. During this timeframe, the average Spanish mortgage rate stood at 2.02%, in contrast to the slightly lower European rate of 1.87%, indicating a notable 0.15% disparity that disadvantaged both the Spanish property market and prospective homeowners.
Spanish mortgage rates are cheaper than European ones
A new trend started in 2022
However, the trend reversed post-April 2022, as Spanish mortgage rates began to align with or dip below the European average. As of January 2024, the most recent data point at the time of this analysis, the average mortgage rate in Spain had settled at 3.7%, marginally below the European average of 3.87%.This shift represents a significant 0.17% advantage, benefiting both the Spanish real estate market and its investors: Spaniards and foreigners, and reflects a notable improvement in the affordability and attractiveness of Spanish mortgages relative to the broader European landscape.
Now that we analyzed all the mortgages issued in both Europe and Spain, it is time to compare rates for different mortgage solutions. As you know mortgage rates are separated in two big categories:
- fixed rates mortgages, mostly mortgages that will keep the same rate over the full mortgage length, usually between 10 and 25 years,
- variable rates mortgages, mortgages that will change rates over the life of the mortgage (monthly, yearly, or every five years)
In the following analysis, we will delve further into the nuances of four distinct mortgage categories: variable-rate mortgages, fixed-rate mortgages with terms of 1-5 years, those spanning 5-10 years, and fixed-rate mortgages with a term of 10 years. Notably, variable-rate and 10-year fixed-rate mortgages stand out as the most popular choices among individuals financing their home purchases, both across Europe and specifically within Spain. This comparison aims to illuminate the characteristics and trends that define each category, providing a comprehensive overview of the Spanish mortgage landscape.Here are all the evolutions and a quick analysis for each:
Variable Mortgage rates: Spain vs Europe showdown
As you can see on the chart, Spanish mortgage rates since April 2022 were nearly always cheaper than mortgages in Europe, as of January 2024, they are cheaper by 0.76%.1-5 years fixed Mortgage rates face-off: Spain vs Europe
As you can see on the chart, Spanish mortgage rates with fixed rates between 1 and 5 years are one of the only Spanish mortgage rates for which you will pay more than in other European countries, on average, as of January 2024, you will pay 0.21% more.
5-10 years fixed Mortgage Rates: Spain vs Europe head-to-head
As you can see on the chart, fixed Spanish mortgage rates (5 to 10 years) were nearly always more expensive in Spain than in other European countries. Interestingly, as of January 2024, Spanish mortgage rates trade close to the European average, i.e. no more premium as in the past.10-Year fixed Mortgage rates in Spain versus Europe
As you can see on the chart, Spanish mortgage rates since March 2022 are cheaper than mortgages in other European countries, as of January 2024, they are cheaper by 0.36%. This is very good news for real estate buyers in Spain.
At the end of this article, we provide a precise comparison between mortgages issued in different European countries and Spain, have a look at where your home country is!
Read more on the subject: What are the best Spanish mortgage rates? -
Key factors behind the advantageous Spanish Mortgage rates
Thanks to our detailed update, now you know that the Spanish mortgage market is experiencing a confluence of positive factors that set it apart from other European counterparts:- Spanish property values remain attractively priced when juxtaposed with other European real estate markets, presenting a compelling value proposition and a lower risk for lending banks, just contrary to what we had in 2008,
- The Spanish economy exhibits resilience and robustness, outpacing the broader European economic performance, which instils confidence in both domestic and international investors,
- The impact of energy price fluctuations has been mitigated effectively in Spain since the escalation of geopolitical tensions in Ukraine, contributing to a more stable cost of living and operating environment,
- Spain’s inflation has consistently been lower than the European average, preserving purchasing power and contributing to the overall economic stability,
- The Spanish real estate sector is characterized by its prudence and lack of speculative excess, evident in the modest percentage of transactions involving mortgages (66%) and the conservative loan-to-value ratio averaging 60%. This reflects a healthy level of leverage and risk appetite in the market.
- The strength of the general economy in Spain suggests that Spanish banks are in a sound financial position, enabling them to offer attractive financing options without resorting to aggressive lending practices. This financial stability is likely to support continued favourable mortgage rates.
These elements collectively create a conducive environment for the advantageous spread in Spanish mortgage rates, underscoring the market’s resilience and appeal to a broad spectrum of investors. Additionally, the prudent regulatory framework and proactive fiscal policies may further bolster the market’s attractiveness, potentially leading to sustained growth and stability in the Spanish real estate sector.
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What are the advantages of obtaining a Mortgage in Spain as a non-resident?
Increase the return on your Spanish property investment
The main advantage of buying a property in Spain, is that current real estate levels are not crazy if you compare those to other European countries.
Read more on the subject: What return will you make on your Spanish property?Even with current mortgage rates, getting a mortgage is easier than getting a loan for something else as a person as the bank has the property as collateral. So, while we always encourage our customers to manage risks and don’t overleverage, getting a mortgage before buying a property is in our mind a wise way to diversify your financial assets.
Last but not least, but depending on your home country, real estate assets could be less taxed than other financial assets.
Diversify your investments
By taking a mortgage, you can decrease your risks by keeping some funds for other investments.
Potential tax benefits and how to maximize them
Buying a property with a mortgage can give you some real tax benefits if you put your property on the rental market afterwards as a “Buy to let” or an investment property. Ask our tax advisors for more on that.
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How to get the best mortgage rate as a non-resident in Spain?
Have the best customer profile for the Spanish bank
Here are some insights into what constitutes an attractive customer profile for securing a mortgage:- Employment and stability: Ideal candidates are employed with a stable and substantial income.
- Creditworthiness: A favourable credit history with minimal debts relative to income is crucial.
- Debt management: A healthy debt-to-income ratio below 35. This means that monthly net income would be at least three times greater than debt repayments.
- Property value: 1/ The chosen property should hold strong resale potential. 2/It should be priced appropriately within the current market. 3/It should be in a location with consistent demand.
- Geographic consideration: Applicants from OECD countries are often preferred due to stringent anti-money laundering regulations across Europe. Being an EU resident simplifies the process further.
- Maximum loan amounts for non-residents: Spanish banks would like to keep that under control
Don’t take a too big mortgage compared to the property value
As a non-resident, you’re eligible to secure a mortgage for your second home or investment property. Given that your assets are not located in Spain, banks will require guarantees and generally cap the loan-to-value (LTV) ratio at 70%. The LTV ratio represents the portion of the property’s pre-tax value that can be financed through a mortgage. This percentage serves as a general guideline. Feel free to request a complimentary consultation from our mortgage broker, who is well-versed in the process and familiar with Spanish banks that are favourable towards foreign clients. The lower this ratio is, the lower the risk for the bank and the better rate for your mortgage.
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Useful considerations for your Spanish mortgage as a non-resident
Processing time for Mortgage applications
On average, mortgages are processed quickly but keep in mind, that you need to prepare a full file so the bank can establish your credit profile. Our partner will work on that with you. Don’t worry.
Higher interest rates and reduced loan amounts for non-residents
In general, foreigners will get slightly less good conditions than Spaniards for their mortgages. This is normal as foreigners don’t have all their financial assets and incomes based in Spain. With a good credit profile and a reasonable loan to value, our customers get nice quotes.
NIE number for non-residents
Acquiring an NIE number is a fundamental step for non-residents looking to navigate the property and mortgage landscape in Spain. This identifier serves as your tax identification number. It is essential for a variety of legal and financial transactions, including the purchase of property and the application for a mortgage. Fortunately, obtaining an NIE is a straightforward process. Your legal representative can handle on your behalf, should time constraints be an issue. For a detailed guide on acquiring your NIE and its importance, we invite you to explore our comprehensive article: Your Spanish NIE number, and how to get it..
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Comparing Mortgage rates in Spain vs. selected European countries
Before checking the evolutions of the mortgage conditions between Spain and a few countries, let’s have a look at what is the current situation as of January 2024. Here is the evolution of the different European markets sorted alphabetically, as a reminder, Spanish mortgage rates and European mortgage rates were at 3.87% and 3.70% respectively as of the end of January 2024.
European mortgage rates January 2024 leaderboard
- Belgian mortgage rates are issued with a 3.69% rate on average in January 2024
- Dutch mortgage rates are issued with a 4.04% rate on average in January 2024
- Finnish mortgage rates are issued with a 4.12% rate on average in January 2024
- French mortgage rates are issued with a 3.59% rate on average in January 2024
- German mortgage rates are issued with a 3.85% rate on average in January 2024
- Irish mortgage rates are issued with a 4.25% rate on average in January 2024
- Italian mortgage rates are issued with a 3.98% rate on average in January 2024
- Luxembourg’s mortgage rates are issued with a 4.33% rate on average in January 2024
- Portuguese mortgage rates are issued with a 4.03% rate on average in January 2024
Here is the same information presented in a column chart:Belgian mortgage rates vs. Spanish mortgage rates evolution over the last 20 years
As you can see on the chart, Spanish mortgage rates and Belgian mortgage rates are close to each other in January 2024. As of January 2024, Belgian mortgage rates were issued at 3.69%.Dutch mortgage rates vs. Spanish mortgage rates evolution over the last 20 years
As you can see on the chart, Spanish mortgage rates and Dutch mortgages are more expensive than Spanish mortgage rates by 0.30%. In January 2024, Dutch mortgage rates were sold at 4.04%.Finnish mortgage rates vs. Spanish mortgage rates evolution over the last 20 years
As you can see on the chart, Spanish mortgage rates since March 2022 are cheaper than mortgages in Finland, as of January 2024, they are cheaper by 0.42%. This is very good news for real estate buyers in Spain. In January 2024, Finnish mortgage rates were sold at 4.12%.French mortgage rates vs. Spanish mortgage rates evolution over the last 20 years
As you can see on the chart, French mortgages are less expensive than Spanish mortgage rates in January 2024. They trade at 3.59%Irish mortgage rates vs. Spanish mortgage rates evolution over the last 20 years
As you can see on the chart, Irish mortgages are much more expensive than Spanish mortgages. As you will surely know, the Irish real estate market rebounded strongly and is one of the hottest markets in Europe even with those higher rates. In January 2024, Irish mortgage rates were trading at 4.25%, 0.55% higher than Spanish mortgage rates.Italian mortgage rates vs. Spanish mortgage rates evolution over the last 20 years
As you can see on the chart, Italian mortgages are much more expensive than Spanish mortgages. In January 2024, Italian mortgage rates were trading at 3.98%, 0.28% higher than Spanish mortgage rates.Luxembourg mortgage rates vs. Spanish mortgage rates evolution over the last 20 years
As you can see on the chart, Luxembourg mortgages are much more expensive than Spanish mortgages. In January 2024, Italian mortgage rates were trading at 4.33%, 0.63% higher than Spanish mortgage rates. As you know probably, the Luxembourg real estate market has a very high valuation and we could see this as banks being prudent or instructed by the European Central Bank to be prudent.Portuguese mortgage rates vs. Spanish mortgage rates evolution over the last 20 years
As you can see on the chart, Portuguese mortgages are much more expensive than Spanish mortgages. In January 2024, Italian mortgage rates were trading at 4.03%, 0.33% higher than Spanish mortgage rates. The Portuguese real estate market had a nice run too had we could see some caution from Portuguese banks. -
Further readings
- Read more on current financing conditions in Spain with our detailed article: What are the best Spanish mortgage rates?
- Hesitating between fixed or variable rates on your mortgage (in Spain or elsewhere) have a look at our detailed insights: How do I choose between fixed and variable rates for a mortgage?
- Last but not least don’t miss our detailed ultimate guide to your Spanish mortgage
- If you need a mortgage pricer for your Spanish mortgage, check our article for more.
Why Spanish mortgage rates are less expensive than in other European countries?
Advantages of Spanish mortgage rates for UK residents
In the mortgage landscape, UK banks are known to promote variable-rate mortgages, nudging customers towards options that fluctuate with the market, despite the inherent uncertainty in future repayments. Meanwhile, Spanish banks are more accommodating of fixed-rate mortgages, offering borrowers the chance to lock in a stable and predictable payment schedule throughout the loan term, contrasting with the UK’s bank-driven preference for variable rates.
Spanish mortgage rates for US residents
In the US mortgage market, fixed-rate mortgages are predominant, offering long-term stability with terms commonly set at 30 years, allowing homeowners to lock in rates for the duration of their loan. This contrasts with the Spanish market, where, despite a growing preference for fixed-rate options, mortgages typically have shorter terms and the market historically leaned more towards variable rates, influenced by the Euribor. Additionally, the US market is characterized by its diversity in loan products and a more developed secondary market for mortgages, which enhances liquidity and flexibility in terms and conditions, unlike Spain, where the market is more traditional and less varied in its offerings.
Benefits for a non-resident of financing his property in Spain with a mortgage.
How to get the best rates as a non-resident.
Useful considerations for a non-resident to get a Spanish mortgage
Stéphane
Senior analyst and strategist at HTBIS
Stéphane, with over 20 years of experience in real estate, finance and entrepreneurship, is the co-founder of www.howtobuyinspain.com. With an extensive network of local partners in Spain, his deep commitment to the real estate sector combined with strong analytical skills and a problem-solving mentality have fueled his success. Constantly eager to learn and passionate about teaching, Stéphane believes in the power of knowledge sharing to master any subject.
Are Spanish mortgage rates more expensive? FAQ
Are mortgage rates in Spain higher than in other European countries?
As of January 2024, the average mortgage rate in Spain was 3.7%, slightly below the European average of 3.87%. This indicates a competitive edge for Spain in terms of borrowing costs.
What makes Spanish mortgage rates competitive compared to other European countries?
Factors such as robust Spanish economic performance, controlled energy prices, low inflation rates, conservative real estate market leverage, and strong banking sector contribute to the favorable mortgage rates in Spain.
How do Spanish mortgage rates compare with specific European countries like France or Italy?
In January 2024, Spanish mortgage rates were lower than many European countries, including Italy (3.98%) and slightly higher than France (3.59%), making Spain an attractive market for real estate investment.
Can foreign investors benefit from Spain's mortgage rates when buying property?
Yes, foreign investors can take advantage of Spain's competitive mortgage rates, which, combined with the country's stable economy and attractive property prices, make it an ideal location for real estate investment.
Downloadable Charts
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]]>The post Our ultimate 2024 guide to buying your property in Spain appeared first on How to buy in Spain.
]]>Reading time 5 minutes. Use our table of content for a quick read.Last Updated on 25/09/2024 by STEPHANE
Click on any flag to get an automatic translation from Google translate. Some news could have an original translation here: News Nouvelles Nieuws Noticias Nachrichten
Our ultimate 2024 guide to buying your property in Spain
Since we started to invest in the Spanish real estate market in 2012, we have built a network of local real estate experts in Spain and become the one-stop-shop solution for foreigners looking for help to buy a property in Spain.
Foreigners, we have built this network first to find the solution for ourselves… then we wanted to share our network and our experience with other foreigners.
In six years, our readership grew to more than 460,000 from around the world!
To assist you even better, we launched this new series of four articles so that you get all your answers and all our tips before going after your dream property. We will cover the subject with 4 main articles:
- How should you start your Spanish property search?
- Where are the best places to buy a property in Spain?
- The best search tips for buying your Spanish property (if you are too busy start here)
- The 18 things to do as a new property owner in Spain (or anywhere)
Too busy? Here is our quick-read summary:
The ultimate guide to buying your Spanish property – Our key insights.
- The article is the introduction guide for foreigners buying property in Spain, leveraging the authors’ expertise and network.
- It outlines the process for starting a property search, including setting objectives, budget, and home criteria.
- It lists the different criteria you should use to compare the different potential properties and avoid an emotional decision.
- Criteria are different for a first home, a second home or an investment property.
- Don’t miss our dedicated pdfs with our exhaustive lists of criteria for each case in our third article: The best search tips for buying your Spanish property
- It recommends working with local experts as property hunters, and technical advisors, and obtaining an NIE (local tax number).
- To avoid pitfalls, the guide suggests hiring a real estate lawyer for legal aspects.
Our ultimate guide to buying your Spanish property, our 2 minutes video
Would you like to watch this video in your own language? Click at the bottom right of the video on “cc” to get subtitles in your language.
But before going into more details about your own property search in Spain, let’s answer some typical questions asked by our readers:
Is buying property in Spain a good idea?
Spain is one of the top destinations for property investment, for three main reasons: 320 days of sun per year, its quality of life and the property prices are not too expensive compared to other European countries. Here we have listed more than 10 reasons for buying a property in Spain.
Is it a good time to buy property in Spain in 2023?
Property prices were very strong before the financial crisis in 2008, they fell up to 2013-2014 and since 2014 we saw a nice rebound in terms of prices and activity. Have a look at our Spanish real estate outlook for 2023 and don’t miss our Spanish real estate prices quarterly report for more on that.
What do I need to know about buying a property in Spain?
With good experts, you can even buy a property without being physically in Spain. We strongly advise you to work with a property hunter and a technical survey of the property could be interesting as well. Apart from that, you need an NIE (local tax number) and a bank account to be able to buy your Spanish property. Read more on the NIE here: Your ultimate guide to your Spanish NIE number.
What are the pitfalls of buying property in Spain?
It is cheap and easy to buy a property in Spain if you are assisted by local experts speaking your language. To avoid any legal or technical risks, we strongly advise you to hire a real estate lawyer to ensure that all the legal aspects of the property are fine. If you have doubts about the structure or technical aspects of the property, you can ask for a technical survey of the property. Last but not least, a property hunter will help you as well to avoid pitfalls and to make the process easier, quicker and even less expensive.
If you want to read more on that subject: Why do you need independent legal and tax partners for your property acquisition in Spain? and The 7 pitfalls of buying a property in Spain.
Now that the introduction is done, let’s start with our first article on your Spanish property search.
Here is the content we will cover:
How should you start your Spanish property search?
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Why would you buy a property in Spain?
Buying a property abroad most of the time starts with one of those two objectives: either enjoy a better quality of life (buying for yourself) or diversify assets (investment). People looking to enjoy the Spanish lifestyle will either buy a second home, relocate or retire in Spain. Don’t miss our article on working remotely from Spain.
We will first take the view that you purchase your property to enjoy a better quality of life. We will review later the pure investment case to diversify assets. -
What are your objectives?
To be efficient in your property search, don’t hesitate to list your objectives: most of the time, you are not alone to share this new dream and listing your objectives is important to find the property fitting most criteria of all persons involved in the project. Is it a second home? Is it a first home? Is it a house or an apartment? Do you want it close to the beach? Do you want a pool? Do you want a garden? Do you want a terrace?… Each person involved in this project should list his own objectives so you will be able to draw a list common of all the people involved in this project.
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What is your budget?
Of course, your budget will be the first thing to consider before searching for a property: how much can you spend? So, the first step before searching is valuing your assets. After that, you will check with your local banker if they can give you a mortgage for a property in Spain and you will check if you can get a mortgage from a Spanish bank. Read our guide for more on this: Your ultimate guide to your Spanish mortgage. Most of the time, you don’t need a mortgage but it could be wise for two reasons: better diversifications of your assets and it could diminish your taxes if you rent your property.
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The perfect criteria for your future dream home
Buying for yourself?
Second home or First home?
Foreigners looking to buy a property in Spain are usually buying a Spanish second home to enjoy the sun 320 days per year, for the quality of life and for the beaches. For sure, Spain has a lot to offer. Spain is for instance ranked as the healthiest country in the world, in front of Italy and Iceland. There are many reasons for this, to give a few: higher life expectancy at birth, better health care system, Mediterranean diet, and better work-life balance,…
Property criteria
Criteria important for second-home buyers could be split into two main categories: location criteria and property criteria.
Location criteria
- Beach proximity
- Airport proximity
- Golf proximity
- Discover the best new build projects located on a golf resort
- …
Property criteria
- Number of sleeping rooms
- Pool
- Terrace
- Specifics about the property
- …
First home Criteria
If it is a first home, of course, your criteria will be different than if it is a second home.
- Proximity to shopping is more important
- Access to public transportation
- An active neighbourhood 12 months per year and not only in the summer
- School proximity could be important for families
- Proximity to hospitals and other medical facilities could be important for people retiring
Even if you buy your Spanish property as a second or first home and not as an investment property (to rent it), we would advise you to read the next section as a lot of foreigners forget that one day, they will need to sell their property. So, it is important to understand if the property would fit the local market or not.
Buying as a real estate investment?
If you buy your property as an investment, your criteria will be different than if you buy the property for yourself: your goal will be to secure a net return on your investment over your holding period.
Investment criteria
- Amount to invest: make fair estimates of the cost to be invested in the property: the property itself, renovation costs, furniture (if any),…
- Mortgage costs. Read more on that in our detailed article: Find the best Spanish mortgage rates
- Yearly costs related to the property: maintenance costs,
- Costs related to the management of your property: many third parties involved: access, cleaning,…
- Fees related to the rental of your property: rental websites, local partners,…
- Regulations: rental regulations vary depending on the local regulations for local Spanish authorities: short-term rentals are not allowed all the time. Read more on that: Tourist rental in Spain: What is it? Is it legal?
- Taxes related to your property: most of the time you have to pay taxes locally and in your home country. Read more on that: What taxes do you have to pay on your Spanish property?
- Don’t forget that you will need to sell your property later on: try to buy a property that is in demand on the market where you buy: Not too big, not too small, 2 bedrooms, with outside space like a garden or a terrace (even more since Corona), in a not too bad neighbourhood,…
Have a look at one of our earlier articles on that subject: What return will you make on your Spanish property?
The criteria for searching your investment property in Spain won’t be the same as if it was your own property: if you buy a property for yourself, you will look for a property with specific characteristics: sea view, pool,… When you look for an investment property other location and property criteria could come to mind.
Location criteria
As your goal will be either to rent your property to people living in the city or to tourists some specific criteria will be important
- Close to local transportation
- Close to economic activities (Companies, universities, research centres,…)
- Close to tourist activities in the case of tourist rental
Property criteria
- Go for a standard size
- Try to buy a sound property
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How much does it cost to buy a property in Spain?
Depending on the fact that you are buying a resale or a new build, the cost will be different but a good rule of thumb is 14%. Read more on that in our detailed article: The cost of buying a Spanish property.
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How much does it cost to own a property in Spain?
A good estimate is 0.7% as we wrote in our detailed article: The cost of owning a Spanish property.
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How do our partners help you with those first steps?
- We have a local mortgage broker dedicated to getting mortgages for foreigners. Ask for a free mortgage quote.
- Our property hunters are there to assist you to find the perfect property more on that in the 3rd article: “How should you search for your dream property?”
With our team of more than +100 local real estate partners, HowtobuyinSpain helps foreigners to buy real estate in Spain.
The experts from our network are active in all the fields you need:
- Property finders
- B&B
- Spanish property lawyers
- Spanish tax advisors
- Architects
- Money Transfer
- Mortgage
- Holiday rental management
- Insure your Spanish property
- Property survey
- Renovation
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Are you looking for a property lawyer in Spain? Follow the link and get one of our local lawyers. Looking for another real estate expert in Spain: Mortgage, Insurance, Survey of property, Property hunting, …? Get in contact with one of our 100+ local partners!
Stéphane Senior analyst and strategist at HTBIS
Stéphane, with over 20 years of experience in real estate, finance and entrepreneurship, is the co-founder of www.howtobuyinspain.com. With an extensive network of local partners in Spain, his deep commitment to the real estate sector combined with strong analytical skills and a problem-solving mentality have fueled his success. Constantly eager to learn and passionate about teaching, Stéphane believes in the power of knowledge sharing to master any subject.
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]]>The post Buying property in Spain? Easy with our 2024 Guide 😎 appeared first on How to buy in Spain.
]]>Reading time 9 minutes. Use our table of content for a quick read.Last Updated on 23/04/2024 by STEPHANE
Click on any flag to get an automatic translation from Google Translate. Some news could have an original translation here: News Nouvelles Nieuws Noticias Nachrichten
Buying property in Spain is very easy
Spain is the number one destination for tourists in Europe. So, not a surprise that many foreigners decide to buy property there.
Buying a property in Spain is not too difficult: you can do it alone, but it is strongly advised to work at least with a local real estate lawyer. Of course, local professionals like local property hunters are nice to have.
Before starting our full review on how to buy your Spanish property, we give you three easy-to-use summaries on the subject:
- Our downloadable step-by-step infographic with all the issues we will cover
- Our summary of the key insights you will learn in this article
- Our 2-minute video on the subject (if you are on the go)
Our downloadable step-by-step guide on how to buy your property in Spain
Too busy? Here is our quick-read summary and our 2-minute video:
How to buy a property in Spain? Our key insights
- Eligibility for foreigners: Expats can buy property in Spain. It’s advisable to consult a legal professional throughout the process to ensure compliance with Spanish laws. For certain foreigners, a Golden Visa is available to facilitate living in Spain.
- Cost of Property: The cost of buying property in Spain averages at about 15% of the property’s value, which includes taxes.
- Best Places to Buy: Choice of location depends on personal preference and intended use of property. Popular regions include Andalusia, the Valencian Community, Catalonia, and the Balearic and Canary Islands.
- Spanish Property Market: The Spanish property market has seen a recovery in recent years. By early 2024, property prices in Spain averaged €1.835 per square meter.
- Homeownership Vs Renting: Deciding between buying or renting in Spain involves considering income level, interest rates, rental prices and the general economic situation. Each individual’s circumstances will determine the best choice.
- Finding Property: Several resources are available to aid in finding the ideal property in Spain. These include guides on starting a Spanish property search, determining the best places to buy, and checklists for different buyer profiles.
- Working with a Property Hunter: A local property hunter can offer expertise, negotiate the best deal, save time, protect buyer’s interests, assist with language barriers, and provide post-purchase support.
- Legal Adviser: It’s advisable to work with a real estate lawyer to ensure the property purchase is watertight and avoid potential issues.
- New-Build Homes: Spain offers advantages for those looking to purchase a new-build home. Abundant plots, high-quality materials, and affordable labor costs are some benefits.
Buying property in Spain, our 2-minute video
Would you like to watch this video in your own language? Click at the bottom right of the video on “cc” to get subtitles in your language.
After this quick introduction, let’s give you all our useful resources on how you should buy your property in Spain to enjoy a nice and safe journey.
#1 May foreigners buy property in Spain?
Yes, foreigners and expats may property in Spain. Spain welcomes foreign buyers, including expatriates, who are interested in purchasing property within the country. There are no specific restrictions or limitations on property ownership for expats in Spain. However, it is advisable to seek professional legal advice and guidance throughout the purchasing process to ensure compliance with Spanish laws and regulations.
For some countries, it is more tricky to buy and/or stay in Spain for a long period of time. The good news is that Spain has created a Golden Visa for foreigners looking to invest in Spain. Don’t miss our detailed article for more on that subject: Golden Visa in Spain: Your ultimate guide!
#2 What are the costs of buying a property in Spain?
Your first question before buying your property will be: Does it cost a lot to buy a property in Spain?
On average the cost of buying a property in Spain will be close to 15%. As in many countries, they are taxes involved with your property purchase. We wrote a paper to give you the detailed answer: “The cost of buying a property in Spain“.
#3 Best places to buy a property in Spain for foreigners
There are many beautiful regions in Spain. Everybody can find what he is looking for. Depending on your personal project, you could decide on one region rather than another: for instance, if you want to stay all the winter months in Spain, the canary islands could be a nice location if you want at least 20 degrees. In order to help you zoom in on the best Spanish region, we wrote a detailed article on that subject: Where are the best places to buy a property in Spain?
It discusses the choice between a sea view or a countryside setting, with the majority of foreigners preferring properties near the beaches. The popular regions for property purchases are Andalusia, the Valencian Community, Catalonia, and the Balearic and Canary Islands.
A few questions and ideas to help you:
- When do you want to stay in Spain? Which period of the year? Which weather do you like?
- How often? The proximity of an Airport?
- Do you have a good budget? The countryside is cheaper. See the next item in the article on the “Spanish property market”.
- What is your property use? Second homes, first homes for relocation or retirement, and investment properties
We advise you to read our detailed articles on all the Spanish Costas and of course, visit different areas in Spain.
If this could help, here is our article on where foreigners love to buy properties in Spain.
The Spanish property market and property prices
The Spanish property market experienced a significant boom in the early 2000s, fueled by a combination of factors such as favourable mortgage lending conditions, increased demand, and a growing economy. However, the market faced a major downturn during the global financial crisis in 2008, leading to a sharp decline in property prices and a rise in mortgage defaults. At the top in 2007, property prices were valued at €2.100 per square meter while it reached the bottom in 2014 when it went under €1.400 per square meter for the Spanish national average.
In recent years, the Spanish property market has shown signs of recovery, with increased demand from both domestic and foreign buyers. Factors such as low-interest rates, favourable lending conditions, and improved economic conditions have contributed to the growth in homeownership. Additionally, government initiatives and incentives, such as tax benefits for first-time buyers, have aimed to stimulate the housing market. So, as of early 2024, property prices in Spain are back to €1.835 per square meter.
Don’t miss our detailed article on that subject covering all the real estate prices of the major Spanish cities.
Beach of Los Muertos, Cabo de Gata-Níjar Natural Park, UNESCO Biosphere Reserve, Hot Desert Climate Region, Almería, Andalucía, Spain, Europe
Homeownership in Spain
Homeownership in Spain is very high vs other European countries. Owning a property is considered an important goal for many Spaniards, and it is seen as a sign of stability and financial security. According to statistics, around 78% of households in Spain were homeowners as of 2021. This means that there are fewer rental properties on the market and maybe a lower turnover as well on properties. To compare with other European countries: Italy has homeownership above 70% and France and United Kingdom are above 60% while Germany is just above 50%.
It is worth noting that the homeownership rate varies across different regions of Spain. In urban areas and larger cities, such as Madrid and Barcelona, there is a higher prevalence of renting due to factors like higher property prices and a more transient population. On the other hand, in rural areas and smaller towns, homeownership rates tend to be higher.
Overall, while homeownership remains a popular choice in Spain, renting is also common, particularly among younger generations and those living in urban areas. The decision to buy or rent a property depends on individual circumstances, financial considerations, and personal preferences.
Should you buy or rent property in Spain?
Deciding whether to buy or rent property in Spain involves considering various economic factors, including the level of income, interest rates, rental prices and the general economic situation. Here’s a breakdown of how these factors can influence your decision:
Level of Income: The level of income is a crucial factor in determining whether buying or renting is more feasible. Generally, higher income levels provide more flexibility and affordability for purchasing a property.
Interest Rates: Interest rates play a significant role in the affordability of buying a property. When interest rates are low, borrowing costs decrease, making mortgages more affordable. If interest rates are low in Spain, it can be advantageous to buy since you can secure a favourable mortgage rate, potentially resulting in lower monthly mortgage payments compared to high rental prices. On the other hand, if interest rates are high, renting may be a more financially reasonable option as it avoids taking on a mortgage with unfavourable borrowing costs.
Rental Prices: Rental prices in Spain vary depending on the region, property type, and demand. Comparing rental prices to the cost of buying a similar property is essential.
General economic situation: Is your job stable? Are property prices expensive or not at a nationwide level? Vs international cities? Is the economy growing? What about inflation?
Ultimately, the decision to buy or rent in Spain depends on personal circumstances, financial stability, long-term plans, lifestyle preferences and the economy in general. It is always wise to discuss this further with financial and real estate advisors.
Don’t worry there are bank properties for all budgets in Spain. If you are on a tight budget, we give you direct access to Spanish bank properties.
Short-term (holiday) lets
Before buying a property, you can rent a property. Each Spanish region has its own regulation on short-term rentals. So, if you want to invest in a property for short-term rentals, it is wise to double-check with a legal advisor.
Yacht berth in Barcelona. Spain
#4 How can I find my dream property in Spain?
What is your ideal property?
Buying property in Spain alone
We wrote a detailed guide on that with different sections helping you to find your ideal home in Spain, whatever your goal is: relocation, remote working, investment, second home, retiring to Spain… We have you covered.
Here is the link to this major study: Our ultimate guide to buying your property in Spain if you want to start your property search in Spain
Here is what you will learn in our detailed study:
- The article is a guide for foreigners buying property in Spain, leveraging the authors’ expertise and network.
- Spain is a top property investment destination due to its climate, lifestyle, and affordable prices.
- The guide answers questions about the property buying process in Spain.
- It recommends working with local experts as property hunters, and technical advisors, and obtaining an NIE (local tax number).
- To avoid pitfalls, the guide suggests hiring a real estate lawyer for legal aspects.
- It lists the different criteria you should use to compare the different potential properties and avoid an emotional decision.
- It outlines the process for starting a property search, including setting objectives, budget, and home criteria.
That study is followed up by four detailed articles so that you get all your answers and all our tips before going after your dream property: You will start with this one: How should you start your Spanish property search?
Once you will find a few properties that are meeting your criteria, you will need to compare those.
Property Purchaser’s checklist
In this article, The best search tips for buying your Spanish property we have created a dedicated checklist for each buyer profile: second home, relocate, investment property, retire in Spain. With those downloadable pdf, you will be able to compare your top properties by all the different persons involved in this project thanks to useful criteria and a perfect ranking system taking emotions out of the decision.
On top of that, we give you all the most important criteria according to us each real estate use: second home, investment property, relocate, retire,…
Fishing Port, Mutriku Harbour, Old Town, Mutriku, Guipúzcoa, Basque Country, Spain, Europe
How to compare and rank different properties to make the best choice?
Use our ranking system for comparing your future Spanish homes
Ranking your property according to criteria will allow you three main objectives
- remove emotions
- help you to compare properties
- allow you to discuss and compare properties with your partner(s)
The idea is simple: to create a weighted matrix containing the physical characteristics (pragmatic, rational) of the house, we will call them the Criteria and you will give each of them an importance level (personal, irrational) or Weight. Each person involved with the project should do the same.
Listing those locations and property CRITERIA in a table will help you for comparing the different properties visited by giving them a global score.
The CRITERIA are rational and shouldn’t take into account your personal feelings (unless for one). They are listed beforehand by all the parties involved in the form of an exhaustive list of each of their criteria.
How to compare two second homes in Spain before purchasing the good one?
#5 Finding the perfect property with a local property hunter
It is very wise to work with local property finder as you can see, there are many benefits of working with a property hunter:
- Market Knowledge: Property finders have extensive knowledge of the market, prevailing prices, neighbourhoods, and reliable partners.
- Cost Savings: A property finder negotiates the best deal for you, potentially saving you a significant amount of money.
- Time Savings: Property finders search the market on your behalf, saving you time and effort. They have contacts and can make multiple visits in a day.
- Protection of Interests: Property finders work for the buyer, ensuring their interests are protected throughout the buying process.
- Language Assistance: Property finders speak both Spanish and your language, bridging the communication gap and facilitating the process.
- Post-Purchase Support: Property finders assist with tasks like opening utility meters, contacting property owners, paying taxes, and finding local partners for renovations or property management.
Using a property finder streamlines the property search process, saves time and money, provides market expertise, and offers support throughout the entire buying process.
Find a local property hunter in our network and read more on that here.
#6 Don’t forget the legal adviser
Buying a property in Spain alone is perfectly fine, but we always strongly advise working with a real estate lawyer as we wrote in our article. If we should cite only one reason, the lawyer will make sure that your property purchase is watertight as the notary is not legally obliged to check different potential issues with the property.
Seascape from Peña Furada Viewpoint, Ortigueira, A Coruña, Galicia, Spain, Europe
#7 Buying a new-build home in Spain
When considering the purchase of a new build property, Spain offers three significant advantages. Firstly, Spain stands as Europe’s leading source for a wide range of high-quality materials, including tiles. Secondly, the cost of labour is reasonably affordable. Lastly, the country’s expansive size and extensive coastline make it an ideal location for development, offering abundant plots for construction projects.
Discover the best new build projects in Spain available right now
#8 Moving into your Spanish property
Our checklist for a new property owner in Spain
Yes, you did it, you bought your property. Now, you have some easier task to set up like opening utilities and so on…
The 18 things to do as a new property owner in Spain
Barcelona City in Spain seem from the air, showing the impressive architecture and block systems of the apartments and offices in the busy Spanish metropolis
Cost of Owning a home in Spain
Of course, a property is an investment and it means that you have costs for the property. We calculated for an apartment in Barcelona that costs are between 0.5% and 1% of the property price on a yearly basis.
Does it cost a lot as an owner of a Spanish property? Check our paper: “The cost of owning a property in Spain“.
Yes of course you got it… Taxes again: What taxes do you have to pay on your Spanish property?
#9 The 9 Steps to buying your Spanish property
In order to complete this review on the buying process of your property in Spain, in this section, you will have a closer look at all the different practical steps before you become an owner in Spain.
if you prefer, listen to our 2 min 30 seconds Video on the 9 steps to buying your Spanish property:
-
Get your NIE “Número de Identificación de Extranjeros”
It is a unique tax identification number in Spain for anyone who isn’t a Spanish citizen. You will need your own NIE number to purchase property and pay the necessary taxes! So it’s wise to apply for this as soon as you start looking for properties.
You can get it in person or via a third party. You can get it in Spain or in your home country at a Spanish Consulate. You need to ask one for your spouse as well if you buy together.
Read our article on this: “Your ultimate guide to your NIE number“.
-
Find a lawyer speaking your language and Spanish
Your first step will be to find a reliable independent lawyer who is specialized in Spanish land and property law. Unless you speak fluent Spanish, you should find a lawyer speaking your mother tongue. More on that here: What is the legal due diligence for your Spanish property?
Looking for a property lawyer in Spain? Check all our partners here!
-
Open a Bank account
With your NIE and all your documents, it is easy to open a bank account in Spain. Pay attention if you are buying from outside the Eurozone. Your local bank could charge high costs to convert your local currency into Euros or wire funds to Spain. We found a good partner to assist you in a cost-efficient manner, read our detailed paper for more on that: How to pay for your Spanish property in Euros – € while you live in a non-Euro country?
-
Do you need a mortgage?
If the answer is yes, it’s time to start working on it. You can get a mortgage either
- from your home country
- or from Spain
Ask for a mortgage from one of our partner
Read our step-by-step article with all the information you need: Your Spanish Mortgage: How to apply? How to get the best rates?
-
Sign the “contrato de Reserva”
The “contrato de Reserva” expresses your intent to purchase and remove the property from the market, it is the reservation contract. In general, you will need to pay a holding fee of €3000 to 6000. Funds are held in escrow for 14 to 21 days and you have the time to do checks on the property during that period. At the same time, a purchase contract will be drawn up and legal checks carried out.
=> This contract is very important, don’t sign without including provisions so you can exit the contract.
=> Cash ideally held by a reliable third party
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Important checks of the property with experts
- the land registry, « Registro de la Propriedad»
- the appropriate planning permission has been obtained
- No outstanding debts attached to the property
- the Community of owners documents’
- the property is as described and structurally sound
Looking for an expert in Spain? Ask us directly!
-
Get your mortgage confirmed
Have a look at our reports on this subject:
-
Sign the “contrato de Arras”
It is the private purchase contract called as well “Contrato Privado de Compraventa”.
You will need to pay your deposit of 10% of the property within 10 days.
As soon as the necessary legal checks have taken place, you will be required to sign the private purchase contract which will state the full price of the property.
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Go to the Notary to sign the contract for the purchase of the property
At the completion stage, all parties connected with the selling and purchasing of the property must be in attendance to sign at the offices of Notaria Publica. This includes your lawyer, mortgage provider (if applicable) and the seller or their legal representative. Before signing you should ensure you have a thorough understanding of all the costs involved and have sufficient funds to cover payments, fees and taxes.
Now that you know all the different steps, let us help you with how to do it in an easy way.
#10 Useful resources
For further reading:
- How to buy a property in Spain as a foreigner?
- The cost of buying a property in Spain.
- The 7 pitfalls of buying a property in Spain
- What return will you make on your Spanish property?
- Spanish mortgage rates for non resident
- Guidance written by the British foreign office
- You can find interesting information on this subject on the site of the notaries in Spain.
Here are our FREE pdf property buyers’ guides written for all the foreign nationalities looking to buy in Spain:
Click on your country flag, you will find your pdf report at the end of each article. Get most of our tips there.
Stéphane
Senior analyst and strategist at HTBIS
Stéphane, with over 20 years of experience in real estate, finance and entrepreneurship, is the co-founder of www.howtobuyinspain.com. With an extensive network of local partners in Spain, his deep commitment to the real estate sector combined with strong analytical skills and a problem-solving mentality have fueled his success. Constantly eager to learn and passionate about teaching, Stéphane believes in the power of knowledge sharing to master any subject.
FAQ Buying property in Spain
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]]>Reading time 7 minutes. Use our table of content for a quick read.Last Updated on 05/06/2024 by STEPHANE
Automatic translation from Google translate:
6 essential reasons for loving your property finder in Spain
Are you familiar with the legal procedure in Spain? How to check the technical aspects of the property? It’s not about having experience in property purchasing but being familiar with how the process works in Spain. Every country is different.
Overall, even if the process might sound easy, believe it or not, you will have a lot of questions and doubts during your purchase process and you will need assistance.
Spain is different, and most Spanish service companies do not work the same way as what is expected from a service provider in other, specifically Northern European countries and the US. Expectations are simply higher. Having a personal shopper will first help you to get all the purchase process in a professional way.
At HowtobuyinSpain.com, our mission is to help foreigners to understand the Spanish real estate market and to find qualitative partners on the ground. Since our launch, we developed a network of professionals partners with local offices all over Spain and talking the languages of the buyers. We work with many local experts for the property hunting: Pierre, Raf, Wim, Bernard,… but as well many experts in legal and tax advice, Architects… Fill this form in order to be directly in contact with our local specialists.
It´s very hard to make an important judgment or decision. Buying a property is for most people the second biggest expense in their life, after their own house. People need someone they can trust to help them, to answers all their questions, and give them guarantees that things are all right or to stop them when things are not all right. Nobody wants to make a mistake when buying something, and certainly not when it is your dream and possibly the second biggest expense you ever made in your life.
Let’s have a look at the 6 reasons why you should take a personal real estate shopper
1. He knows the market
When you are not familiar with the market trends, prices, neighbourhoods, don´t speak the language and lack the experience in buying a property in Spain, you can lose a lot of time and money or simply end up giving up on your dream. This can stress you out. Your personal real estate shopper is there to assist you.
He knows:
- the market and the prevailing prices and the last deals traded,
- the neighbourhoods,
- the reliable partners,
- which properties are coming to the market before they are visible by others.
2. He will save money for you
Once you found your property, your personal real estate shopper knows if the price is correct or not, he will negotiate the best deal for you. This will save you a lot of money, and for many deals, you will recoup your personal shopper fee by itself!
3. He will save your time
Your personal shopper will search the market for you. He has is own contact in the industry and is doing this 7/7, 10hours per day. He is on the ground and can make many visits in one day… Surfing on the Internet in search of your ideal property, arranging meetings and visiting them will take a long time. It´s complicated. So, that’s really obvious!
4. He will protect your interests
What are the properties that buyers are searching for today? Which one suits your project the most? Which are the best neighbourhoods in the city? Where to start searching? Who to trust? When you don´t know the answers to these questions, property buying can turn into a very stressful process. The property hunter is not working for the seller as the real estate agents are. His goal is to protect your interests: the interests of the buyer.
5. He speaks Spanish and your language
Language could be a barrier which brings additional challenges. The search is mainly in Spanish, as most local real estate agents are only speaking Spanish. And of course, all the legal paperwork in Spain is Spanish. So, it will help the process a lot to have a local intermediary speaking Spanish and at the same time speaking your language or at least English.
6. He will find solutions after your purchase
Once you bought the property, the real work starts: Opening utility meters, get in contact with the property owners, pay taxes,…
Any renovation works? I guess you will need some local partners, no? Buying for investment, I guess you will need a property manager,…
How does a real estate personal Shopper work?
It is a 6 steps process:
1. Interview with the customer
Most of the property hunter will organize a call in order to understand what the customer is ideally looking for. The customer will as well give is budget expectations. The property hunter will clarify if he thinks that he can find the ideal property within budget or not and will explain how the Spanish residential market is in general and how the local market is in particular. The property hunter will help the customer to define the ideal location according to his criteria’s: specific requests, budget, but as well depending on the motivations of the buyer.
Two main motivations
In general, foreigners could have two main motivations for buying a property in Spain:
- Holidays
- Investment
And of course, some are looking to buy for both at the same time!
Buying a property in Spain has its own costs. Owning a property as well! So, it’s important to know where you are going from the start!
Read our reports if you want to know more on that subject.
2. Contract
Once the customer knows all about the personal shopper and he is confident that he is the good partner, the real estate personal shopper will send his contract to the customer with the detail of his mission and the financial terms. After signing the contract, usually, the customer will have to pay an initial down payment to cover the initial costs and start the mission. Once the mission is completed and successful, the customer will have to pay the remainder, the “success” fee. That’s another big advantage of working with a property hunter: he will get the big part of his commission, only if his mission is fully completed!
3. Search the market and Visit properties
The real search is starting now. The personal shopper will first establish a list of the different criteria’s of his customer. Then he will get in touch with his contacts at many different real estate agents and he will search the market and the different portals. Once he has found a property, he will organize visits.
4. Feedback and exchanges with the customer
Once the personal shopper has found a property fitting the criteria’s, he will revert to the customer. Depending on the market, if there are a lot of possibilities on the market, he will even come back with many different properties fitting the criteria’s of the purchaser. Depending on the feedback from the customer, the personal shopper will continue is mission or not. In general, the customer will come as well on the ground, surely if his main motivation is a purchase for himself so that he can have a strong view on the different propositions and go ahead with any one of those.
5. Purchase of the property if agreement with the customer
Once there is an agreement on a property, the property hunter will begin to negotiate with the seller and will try to get the best price for his customer. At the same time, it’s the start of the purchase of the property which involves many different steps. Please read our Infographic on those: “The 8 Steps of buying your Spanish property”.
6. Assist the customer with formalities
Assist the customer with all the paperwork, the set up of utilities, the registration of the property with local authorities, with the community of owners…
But as well, help the customer to find local partners for renovation work or interior design. This part is as well important for foreigners as most of the time they don’t know reliable partners and don’t speak Spanish.
The best way to see what a property hunter does for you is as well to look at the real estate city trip to Valencia we organised in April 2018.
Have a look at the profile of our real estate personal shoppers in Madrid, Barcelona and Valencia.
Our property hunter in Madrid: Pierre and his team
Last Transaction in Madrid? Written on October 2017
They bought a one bedroom property for €361.115 tax included for investment purpose. This was financed by a mortgage of €161.115. The gross revenue on the property is €35.855 and the net revenue (before mortgage cost) is €22.971, i.e. a 6.4% net yield before tax.
How is the market in Madrid?
With “a growing economy, low financing costs, good potential for rental returns and capital appreciation” the Iberian Peninsula’s largest capital city, Madrid, ranks as the best European city for property investment.
Why is Madrid so attractive for property investors? First, Madrid’s housing market has recovered and is posting new gains. Foreclosures were down by more than 30% in 2016 and housing prices are expected to increase by 4% in 2017. Future increases are forecast to be even greater: 19% from year-end 2016 to 2021. Although prices are recovering, they are still some of the lowest in Europe, averaging 3,353€ per square meter.
Even more enticingly, Madrid has rental yields of 5.2%, the highest rental yields of any European capital city, and some of the highest in the world.
This combination of low real estate costs and rising rental prices in Madrid are big draws for property investors. To learn more reasons why the Madrid property market is so attractive, read our ealier paper: Madrid in the Top 3 European Cities for Property Investment.
Read our full report on the real estate market for the 20 biggest Spanish Cities: All you ever wanted to know about the top 20 Spanish Cities real estate markets – including price evolutions
A quick description of Pierre and his team
Pierre and his team are active on the market since more than 7 years, they served more than 800 clients and managed investments of more than 8.3m€ (nearly $10m).They help busy international professionals to find the perfect property: they provide property search, negotiation and property management services to help people from all around the world to buy in Madrid. They are an international multi-lingual team dedicated to helping international people just like you make their Madrid projects come true and without the stress and uncertainties. The average return that we get for our clients is 10.6% (includes capital appreciation and rental income – all after costs).
They speak in English, French and Spanish.
Check our most recent article of February 2018 on Madrid Property hunting: Madrid property investment: a Case study with the last update on the real estate market in Madrid.
Our property hunter in Barcelona: Raf and his team
Last Transaction in Barcelona? Written on October 2017
Signed on October 26th 2017 (it´s hard to be more hot-of-the-press). Two-bedroom apartment of 84m2 in the heart of the trendy area Gracia, in a beautiful classic building and containing historic elements like mosaic floors and vaulted ceilings that are typical for Barcelona. Who buys and why? A Belgian buyer, as an investment to rent out. We will fully renovate the apartment in order to create a lovely space and achieve attractive rental incomes and created added-value. Located in a traffic-free street, with plenty of sunlight (south-orientated) and with a common rooftop terrace, which is a unique asset in Barcelona. Purchase price: 258.000€. We negotiated a considerable discount for the buyer and more important to note is that the property was sold “pre-market”, we saw it first before hitting the market. This is the second investment property that this buyer purchases this year in Barcelona. Beside the buying process, INSPIRE will manage as well the renovation and renting out. Expected returns on own capital from the investment are 10%, not taking any potential property value increases into account.During the past few months at Inspire we have closed purchases for a total value of 3M euro and we are currently working with a total investment budget of 10 million euro across our different clients, of which about 75% are international buyers.
How is the market in Barcelona?
Barcelona is a market where we see every year an increase of approximately 15% in international buyers. Also the total number of buying transactions is going up year after year, as well as the prices do. Barcelona´s lifestyle is hard to beat and in terms of properties, the city plays in the global real estate champions league. Barcelona is a city that is a magnet and that´s not only because of it´s attractive property market. People love the city, the lifestyle, the climate, the ease of cheap travel options to come to Barcelona, the good food, … in other words a real cosmopolitan vibrant city at the Mediterranean sea.
Read our full report on the real estate market for the 20 biggest Spanish Cities: All you ever wanted to know about the top 20 Spanish Cities real estate markets – including price evolutions
A quick description of Raf and his team
We are passion, effort, high performance, an answer to a deep need. We are enthusiasm and focus. We are a Barcelona based company offering innovative buyer-focused Property Finder services. We do not sell houses but help you find and buy your dream place by exclusively defending your interests and guiding your through the process from A-Z, till you have the keys in your hands, including full legal advise, technical and financial help. Buying made easy.They speak in Dutch, English, French, German, Russian, Spanish and Catalan.
Check our most recent article of May 2018 on Barcelona Property hunting: Barcelona property investment: a Case study with the last update on the real estate market in Barcelona.
Our property hunter in Malaga:
Last Transaction in the Costa del Sol? Written on October 2017
Between Malaga and Marbella, we bought for a couple in their 40s, a very beautiful and spacious 2-bed/2-bath apartment in a well maintained community. The apartment has 90 sp meters and was listed between €200.000 and €250.000. The couple was looking for a mixture of personal use and occasional renting. It’s location is perfect as it is 20 minutes from the airport and is within walking distance to the sea. Ideal!
How is the market in the Costa del Sol?
In spite of fears that uncertainty over Brexit was going to depress the recovering market, we have seen good and consistent demand over the last months from a variety of Northern European countries, in particular Belgium. Stylish new developments are also reappearing in many places along the Costa del Sol. As long as they are in prime locations and of high quality, they should be able to find buyers. We don’t see heavy leveraging (debt financing) or speculative attitudes (buy to sell) among buyers, which is a sign that the market is healthy and will remain so for the coming years.
Read our full report on the real estate market for the 20 biggest Spanish Cities: All you ever wanted to know about the top 20 Spanish Cities real estate markets – including price evolutions
Our property hunter in Valencia: Bernard and his team
Last Transaction in Valencia? Written in October 2017
Our client bought an industrial building in Javea (Alicante) for a future transformation with a 2 level loft including an inside swimmingpool, we talk of 340m2 and 2400m2 ground: the price was €645.000, taxes and charge included. The renovation works are estimated at €325.000. This transaction did not need any financing and this property was purchased to become a second home.
How is the market in Valencia?
The market is down in the Valencian community, -4% compared to the overall growth of 3% in Spain. The price for Castellon, Valencia and Alicante are on average at 1,386 eur/m² with important variations between the coast and the interior. Sales continue to grow and the interests on those markets is increasing.
The Valencian community has 19,657 real estate companies (INE 2017). That is why it is very important to choose a reliable partner as your real estate agency. Should your motivation be an investment or a holiday home it’s important to benefit from reliable and independent services.
Read our full report on the real estate market for the 20 biggest Spanish Cities: All you ever wanted to know about the top 20 Spanish Cities real estate markets – including price evolutions
A quick description of Bernard and his team
Bernard fell in love with Valencia during his Architect studies in 2000. He is working as an Architect in Valencia and Alicante since 2005. He is working with his team on Architect missions or as a property finder.
They speak in German, English, French and Spanish.
Check the feedback from our real estate citytrip we organised in Valencia in April 2018 with our local property hunter, Bernard.
In conclusion, a real estate personal shopper will make it quicker, easier and cheaper!
Check the list of our partners active as real estate personal shoppers in Spain. We can’t list all our partners in this section so don’t hesitate to ask us directly if you have a request by filling this quick form.
1. Best Professionals 2. Follow up 3. Competitive pricing 4. Partners 5. Qualitative Check
Looking for an expert in Spain? Ask our network of local partners directly!
Senior analyst and strategist at HTBIS
Check the full HTBIS team here
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