Yes! You read that right! Spain is the best place to buy a house in Europe at the moment. So now, besides from having the best weather and culture now it’s also going to be a great option to actually buy a property in Spain, your first or second house can be in a sunny place and it doesn’t have to be to expensive.
In recent years it has become harder and harder for young first-time buyers to get onto the property market. The 2008 financial crash saw the slowdown of rising property prices, yet in most countries, they continue to significantly outpace the rise in salaries. Using data from the Global Property Guide and the Hay’s Group Global Salary Forecast and cross-referencing the change in property prices with an average salary in 33 countries in 2016, the relocation experts at MoveHub have determined the best countries for first-time buyers.
Using data from the Global Property Guide and the Hay’s Group Global Salary Forecast and cross-referencing the change in property prices with an average salary in 33 countries in 2016, the relocation experts at MoveHub have determined the best countries for first-time buyers.
The research found that countries with the biggest property price hikes had unfortunately seen the slowest growth in annual incomes, with some salaries in decline, whilst house prices rose. On the other hand, countries with the highest salary growth enjoyed property prices which were dwindling or even declining, making them the best places for first-time buyers.
Apparently right now Spain is one of the best options for people who are looking to buy their first property. Check out the reasons why:
Spain is the second-best country for first-time buyers
UK-based relocation service MoveHub compared 2016 property price data from the Global Property Guide with average salaries according to the Hay’s Group Global Salary Forecast to determine the best countries for first-time buyers to get a foot on the property ladder.
Of the 33 countries analyzed, the United Arab Emirates topped the table thanks to a nearly eight percent drop in property prices last year.
In Spain, a 2.2 percent hike in salaries against a 5.75 drop in property prices put it in second place behind the UAE and ahead of Greece, Singapore, and Switzerland in the top five ranked nations.
“Overall the report revealed that countries with the biggest property price hikes had unfortunately also seen the slowest growth in annual incomes, with some salaries in decline, whilst house prices rose,” said MoveHub in a statement.
“On the other hand countries with the highest salary growth enjoyed more affordable property prices or even prices in decline, making them the best places for first-time buyers”.
Spanish real estate is picking up after the bottom spectacularly fell out of the property market at the start of the global financial crisis and following an extraordinary construction boom.
Alexander Vaughan, co-founder of Lucas Fox International Properties thinks 2017 is a great time to get on the property ladder in Spain.
“We believe that this year has been a key turning point for the Spanish property market. After property prices bottomed out midway through 2014, 2015 saw modest price rises in prime regions. The recovery phase has continued throughout 2016, with the main difference being that price increases have not been limited to Barcelona, Madrid, and desirable second home destinations,” he said.
“We believe that a growing economy, low financing costs, good potential for rental returns and capital appreciation will continue to drive sales throughout 2017 and beyond.”
Low-interest rates, rising prices, and signs that the economy is strengthening continue to attract property buyers to Spain.
With the Euribor – the rate used to calculate most mortgage repayments in Spain – remaining below zero for the last 12 months, many homeowners have taken advantage of low-interest rates to contract fixed-rate mortgages. Traditionally these loans typically represented just 10 percent of mortgages but over the last year, the proportion has surged to 53.3 percent according to Spain’s Mortgage Association (AHE).
Font: MoveHub
A lot of people are also buying a house to set it up as wedding villas to rent.