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Why Middle Eastern investors should look at Spain for Property Investment

With middle eastern investors famed for their love of overseas property investments, we look at why Spain would be the perfect place to invest

by Mark Burns

Investors from the Middle East have been looking to expand their portfolios and with Spain getting a lot of attention form investors thanks to the growth and Golden Visa it could be a good place for Middle Eastern investors to look.

The following 10 reasons explain why Middle East investors should invest:

Low Prices

The real estate sector has seen a decrease of 30-40% since 2007. This decrease slowed down throughout 2014 and in the cities such as Barcelona and Madrid prices began to move in the opposite direction. Now investors are taking advantage of the prices especially in the commercial, offices and residential sectors as they offer excellent returns.

Recovery of the Economy

As a result of the growing Spanish economy through 2014 and the potential for its GDP to grow by 2% on average each year from 2015 there have been more transactions during 2014. There has been an investment of €7 billion in the non-residential sector last year which is a €2.5 billion increase from 2013 and investments from foreign buyers increased to €6 billion.

Tourism

Spain is still one of the top tourist attractions throughout the world. It received around 65 million visitors in in 2014 which is an increase of 5 million from 2013. The hospitality sector saw more than €1 billion of investments in 2014 and investors from the Middle East have begun to target the Spanish market with the Qatar Armed Forces Investment Portfolio and Katara Hospitality investing in the Renaissance Barcelona for almost €80 million.

A Market of opportunities

The usual places that receive investment from Middle Eastern investors such as London and Paris are now experiencing high prices that make it difficult to make moves in this market. The Spanish property Market is easier to enter for those looking to make investments.

Easier Credit

There is more credit available now which coincides with the recovery of the economy as well as investment opportunities. With banks lending more money, developers are starting to work on new developments.

The Golden Visa

Non-resident investors, since 2013 have been able to purchase real estate for a minimum value of €500.000 to make them eligible for the golden visa. This will give them the ability to obtain a residency as well as travel within the Schengen area without a visa whilst also being able to stay for as long as they wish.

Rental increase

Many Spaniards are still not in the position to purchase a property which means that they have turned to renting. Over the last 10 years rentals have increased by 36%.

Large Investors

Some big names have invested in the Spanish Economy such as Bill Gates and Goldman Sachs throughout 2014. Many companies from the Middle East have started to show an interest and started to make in-roads into the Spanish Market. With big investors making moves it will result in other investors following suit.

Potential Price increase

Many other European countries have reached their maximum when it comes to selling and rental prices. Spain still has a lot of room for investments to grow in both the short term and the long term.

Easy Access

There are now flights directly from Dubai to Barcelona and Madrid making it easily accessible and quick.
 

*This post was published according to the "Contributed Article Terms and Conditions"

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