Real estate in Spain, an interesting investing prospect
Following the burst of the real-estate bubble in Spain, real estate prices fell from 30 to 40% since 2008 (minus 7.8% in 2013). Yet, the crisis is not uniform. The downturn has had less effect on some areas and real estate properties.
Thus, it seems that the crisis has not affected the city of Sitges, which can be explained by two factors: a stable high level of demand, thanks to foreign presence, and a high quality of offers tending to narrow.
The interest of foreign clients’ can be explained by the city itself, but also by its geographic location. Sitges not only has a charming historical centre, but also a shoreline along which walks are pleasant. Above all, the Catalan municipality offers the tranquillity of a small town while being close to Barcelona (which is convenient due to the infrastructures of the city, such as airports). Sitges has the particularity of being massively inhabited by foreigners, giving it a cosmopolitan face of international reputation.
Sitges presents a lot of impressive mansions and residencies with views of the sea. Nonetheless, there is a growing scarcity of offers because properties are being transmitted from generation to generation within families that are reluctant to selling. As a direct consequence, the effects of the estate crisis are amortized. Thus, on average, you need 5 to 7 million Euros in order to acquire an individual house along the shoreline with a view of the sea.
Nonetheless, because of the crisis, estate prices have dropped by 27.6% between 2007 and 2011 before stabilizing. This fall in price offers interesting estate investment prospects. Real estate is also soaring in the neighbourhood, with prices being inferior for similar comfort. The market is also flourishing in the residential neighbourhoods of Terramar and Del Vinyet where residencies are being negotiated for amounts ranging from 2 to 6 million Euros.
In order to make any investment in real estate, it is important to consult with a qualified legal adviser, who can assist you not only during negotiations, but also during the finalization of the purchase (residence permit for foreigners, transfer of ownership, advertising of the bill of sale) and understanding its consequences, particularly fiscal ones.
Clément-Henri Girardot & Monika Bertram
