This Years Property Hotspots Are Valencia And Madrid
News Posted On: 19 January 2015
As Spain’s property market recovers on the back of a stabilizing economy, Valencia and Madrid emerge as likely candidates for 2015 property hotspots. Madrid has suffered in the years since the crash, but both the Spanish capital and tourist favourite Valencia are likely to excel in the coming year, according to real estate agency Lucas Fox International.
Madrid has already begun to improve, with sales rising 17% year-on-year in 2014 and prices rising for the first time since 2007.
Valencia has two selling points: it’s always been a tourist favourite, and it’s also a focus of business an investment activity, creating two strong sources of demand. Lucas Fox’s figures indicate that sales in Valencia may have risen as much as 30% year-on-year in 2014.
Rod Jamieson, Madrid director of Lucas Fox, said: ‘Five years ago, Madrid was a city in decline due to the meltdown of the financial sector and bursting of the property bubble, two sectors upon which the Spanish capital was very much dependent. Today, following several key structural reforms and an important price correction in the property market, Madrid is back on the map as one of the best places in which to invest.’ He added that, ‘the last year has seen a large increase in foreign investment.’
In Valencia, Juan Luis Herrero said the seaside city had developed into one of Europe’s most exciting and progressive cities and had developed a reputation as the ‘California of Europe,’ offering a combination of long stretches of coastline, year-round paradisiacal weather and world-famous cuisine – with a rich cultural heritage and stunning architecture too. Mr Herrero points out that, ‘it also offers excellent accessibility to the likes of Madrid, Ibiza and Barcelona, [so] it is no wonder that Valencia is increasingly becoming a target for opportunistic overseas property investors.’
And there’s the rub: for Spanish people, the fear is that this is an investor’s recovery, which they fear would be bad news for both individual overseas buyers and locals. There’s a risk of more instability in the market if investors move in without a real base of local demand. For investors, though, it’s all but irresistible: prices are up to 40% under where they were in 2007 and both Valencia and Madrid are likely to see significant growth, meaning buying to rent or resell has strong attractions.
However, for Britons, these areas have strong attractions too. In a bid to attract investors, Lucas Fox state that, ‘both cities are quintessentially Spanish offering a vibrancy and cosmopolitan atmosphere less palpable in some of Spain’s popular coastal areas, and go on to say: ‘…we feel confident that Madrid and Valencia will be attractive investment hotspots, appealing mainly to northern European, Chinese and Middle Eastern buyers.’
Those same attractions make Madrid and Valencia attractive propositions for British buyers looking for a home. Spanish banks are lending to overseas buyers again, making the weak euro work in British buyers’ favour, and the prospect of buying a home that’s been checked out by the bank is also appealing. How many of the buyers turning their attention to Madrid and Valencia will be residential and how many will be investors remains to be seen, though.
Written by Les Calvert of www.property-abroad.com
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