10 reasons why Middle East investors should look at Spanish real estate
Emirates 247.com - 21.02.2015
The Middle East investors are seeking to diversify their investment portfolio and today there are many possibilities and opportunities in the marketplace.
But one of the countries that is attracting attention among private and corporate investors is Spain, thanks to the potential of price growth and the Golden visa rule that allows investor and their family to travel within the Schengen area without visas.
Here are 10 reasons why to invest in Spain’s real estate market.
#Low prices post-recession
Since 2007, the economy, and the real estate sector in particular, suffered a severe readjustment with a decrease of 30-40% in the prices across the country. This negative trend slowed down during 2014 and prices started going up in the big cities: Madrid and Barcelona. Therefore, opportunistic investors are taking advantage of these low prices in order to diversify their portfolio across diverse industries. Commercial, offices and residential, in this order, are the sectors that offer higher short-term returns and big potentials in the long term. Furthermore, the current dominance of the Dollar -and Dirham- over the Euro makes the investment even more accessible.
The growth of the Spanish economy during 2014 and the prediction of its GDP to grow on an average of 2% per year from 2015 onwards have favored the amount of transactions during 2014. In total, €7 billion have been invested in the non-residential real estate sector across last year, a huge increase from €2.5 billion during 2013, according to consulting firm Savills. Residential investments, dominated by foreign buyers, have reached €6 billion.
Spain remains as one of the most popular touristic attractions worldwide. During 2014 the number of visitors reached 65 million, 5 more million than in 2013, just behind the US and France. With a total of more than €1 billion in investments in the hospitality sector, an increase of 37% from 2013, Middle East investors have also targeted the Spanish market. Qatari groups, Qatar Armed Forces Investment Portfolio (QAFIP) and Katara Hospitality purchased the Renaissance Barcelona from Marriott International for €78.5 million and the Intercontinental Hotel in Madrid for more than €70 million.Plus... Back