Two years since the beginning of the COVID-19 pandemic, the Spanish real estate market has managed to restore its previous activity. Local and foreign home buyers show interest in luxury residential units like apartments and villas in Barcelona. Location is one of the most important criteria that needs to be decided in the process of selecting a suitable option. Keep on reading this article for a better understanding of how to choose the right place to buy a residential unit in Spain.
Answers to frequently asked questions by property buyers in Spain
Before going into the details of useful information that can help to find the best location, check out the answers to the most frequently asked questions:
1. Is buying a house in Spain a good idea? This country is one of the best real estate investment destinations for three main reasons: 320 days of sunshine a year, a high quality of life, and relatively low prices for residential units compared to other European countries.
2. Should I buy a residential unit in Spain right now? Spanish property values remained at very high levels until the 2008 global financial crisis. Since 2014, it has begun to recover. Even the COVID-19 virus, which significantly slowed the market down, could not prevent it. Today, house prices have returned to pre-pandemic levels and start to conquer new heights. So, there is no doubt that purchasing a local property in 2022 will be the right investment decision.
3. What taxes do I need to pay when acquiring real estate in Spain? Buyers of a local accommodation must pay a property transfer tax. Its amount depends on whether the selected unit belongs to the primary or secondary housing market. In the first case, the tax is 11.5%, in the second case it is 10%.
4. How long does it take to buy a home in Spain? At best, it will only take 1-2 weeks. Basically, the transaction process depends on the seller and representatives of the agency with which he cooperates. But the hardest part, which takes the most time, is the comprehensive check. 80% of the time spent on this check falls on the analysis of documentation, and the remaining 20% of the time are spent on the examination of technical issues (the condition of the house, problems with neighbours, outstanding payments, etc.).
5. Is it possible to organize a property viewing before signing a pre-sale agreement? Yes, a buyer has the right to hire a specialist and arrange a technical property viewing before signing a pre-sale agreement. A potential buyer should pay 10% of the total price. But this must be agreed with the seller.
6. What is the maximum loanable amount when applying for a mortgage? Currently, Spanish banks usually agree to lend approximately 60-70% of the real estate value. But a buyer needs to be careful. This is not about 60% of the market value, but about 60% of the actual price. Representatives of credit institutions define it after examining a residential unit. How big is the difference between the market price and the actual price? Banks usually undervalue if the home is located in an area with an uncertain market future. On the other hand, if the unit is located in a large and promising city like Barcelona, the difference will be small.
7. Can I buy a house without a “cédula de habitabilidad” (a certificate of occupancy)? A certificate of occupancy is a document confirming the fact that a certain residential facility meets the required sanitary and hygienic conditions. It is of fundamental importance when purchasing a house, as in the future the owner will use it to register for all services such as water and gas services. Technically, you can buy a house without a certificate of technical conformity, but experts do not recommend it.
8. Is it possible to buy an uninhabitable unit and make major renovations to it? A buyer in this situation will need a special licence issued by the city hall. It will allow him to create a more livable environment in the house. But there is a possibility that the license request will be rejected if the housing unit does not meet the established standards and requirements.
Choosing a location for buying property in Spain
The best place is the place where the future owner will feel most comfortable. The following information will help you decide in which direction you need to move.
Coastal area or countryside?
Most foreign buyers interested in Spanish real estate dream of living by the sea. Foreign citizens usually prefer residential properties in Andalusia, the Valencian Community, Catalonia, the Balearic Islands, and the Canary Islands.
It is recommended for people with a tight budget, or people who just want to buy a bigger property for less money, to take a closer look at the countryside options. In this case, you need to take into account that such units are difficult to resell (especially if they are located far from major cities).
Weather
The climate is a key reason why people decide to relocate to this country. This is why you need to check the weather statistics in the chosen area when selecting residential properties. Many people think that winter is always warm here, but this is not true for all Spanish cities. As a rule, fans of the sun and hot year-round weather choose the Canary Islands.
Budget
Of course, everyone dreams of a beautiful villa with a private garden, swimming pool, and sea views. But, despite the fact that the Spanish real estate market is known for its relatively low prices, this villa will cost a pretty penny.
People choosing elite properties on a big budget should be looking at Barcelona, Madrid, and Bilbao. For those, who want to save money, houses in Las Palmas de Gran Canaria, Malaga, and Seville are the perfect options.
The purpose of a purchase
One of the main questions that the buyer should answer when choosing the best area to purchase real estate is what function the residential unit will perform. There are three main functions:
- A second or vacation home;
- A primary residence for relocation;
- Buy-to-invest property.
Each of these functions includes different search criteria. Vacation home buyers typically want to be close to the beach and to a broad range of entertainment options. Investors willing to gain income on rentals should look for properties close to the sea and to popular attractions. And buyers planning to relocate should consider their own goals (as an example, large families often need a home near schools, hospitals, and other important infrastructure).
Assistance with buying real estate in Spain
Highly qualified specialists of Spain-Real.Estate will assist you with the selection of the best housing option and provide full support during a real estate transaction anywhere in Spain. Visit the official website of the aggregator and check out the best available offers on the Spanish real estate market right now.
