The global economic crisis that has hit the Spanish real estate sector, makes investing in real estate may be, at present, very profitable.
The Costa del Sol in Malaga (Spain), both coastal and interior, features a wide range of properties that have not been sold by market conditions and can be purchased at the lowest price possible. Today, analysts say, prices are touching the ground, so it is not expected a further fall. These structural conditions attached to the position of the banks that have accumulated a vast amount of properties from foreclosure, has two consequences:
- 1) That with the oversupply and shrinking demand, the price of properties has fallen from a 25 to 60% comparing to the market price five years ago.
- 2) Many banks, property owners, provide facilities for buyers in order to get a mortgage. Banks want to be rid of those properties that have accumulated in stock.
Adquisition for own enjoyment
Today more than ever a lot of people may enjoy a property in areas of high level of life. A range of potential buyers (niche market) is open to middle classes from emerging countries and European countries that had traditionally chosen other more affordable places to make their purchases on more favorable economic conditions. Currently peope can buy properties in Spain at a price not much higher than touristic areas in Bulgaria, Croatia or other locations of Southeastern Europe.
Acquisition as a way of investment
Low prices encourage capital gain in medium and long term. Because prices are at minimum levels high yields can be obtained in a reasonable waiting time. Meanwhile, the owner can rent out her/his apartment.
The large stock of properties makes possible many business projects. The acquisition of hotels, cottages, complete buildings to be devoted to use by executives, seniors, tour operators, etc., has become a profitable and attractive business for many investors.
Foreign investments support
If you intend to make an investment in Spain (acquisition of a property, a company, a hotel, setting up your company, business, or any other) it is good (advisable) that the investment begins in your own country, organizing the whole project and having the data necessary to make the right decisions. Once you have outlined and organized the investment it is necessary visiting the area in question and meet with different businessmen, vendors, suppliers, etc. Finally you must negotiate terms and agree on every point until the total completion of transactions. No doubt, throughout this process, you need a lawyer and advice in your own language. This service can be found in our Law Office.
Services for investors
We offer the necessary legal advice and foreign investments support:
- 1. From the investor’s own country. Market research, search and selection of properties or business, organization of investment and visits to the target area of investment.
- 2. Assistance program during/in your visits, interviews and negotiations in the area of investment. A person who speaks your language will accompany you during all that time, with the constant supervision of an attorney to review documents or prepare them, and attend in person if his presence was necessary. We will advise you on the best option.
- 3. Assistance in all steps to complete the proposed transactions, performing all necessary actions for the success of the intervention, forming partnerships, preparing deeds before a notary, making all the necessary administrative steps.
- 4. If the company is formed, we may offer business support, paying the necessary legal assistance. We can help regarding operational services of new companies (accountancy and tax advice).
- 5. Immigration matters, we pay the necessary legal assistance to get the most appropiate residence permit for the investor.