The Iberian Peninsula is one of the top three destinations in Europe for holiday home buyers, CNBC points out, citing data from Knight Frank. And in Spain itself, the leading location is Marbella, described as the pearl of the Costa del Sol, or sunshine coast.
Spain is gaining in popularity
Spain, like France and Italy, is described as an economically and politically stable country, which, combined with easy access to mortgages, are key arguments for purchasing a holiday home on the Iberian Peninsula. Location is also one of the most important factors. This is as much about the attractive location of the holiday home as it is about its good transport links. If we add to this the picturesque coastline, it would be hard to find a better place than Marbella, a symbol of luxury that also conceals a rich history – dating back to antiquity.
From the perspective of the owner of a holiday home, which will be used for rental purposes for most of the year, two increasingly visible market trends are relevant. The first is the popularisation of remote working and the change in attitudes – especially among younger workers. They are not tying themselves to one place, changing their place of living and working every year or even every few months. This is a strong boost for the rental market, as is its long-term variant. Increasingly, whole families are moving to Spain for a year, for example, to get a feel for local life before settling there for the long term.
A paradise for “digital nomads”
Knight Frank experts point out that Spain could become even more popular due to the introduction of visas for ‘digital nomads’. This is an option available to non-EU citizens who work remotely for companies outside Spain. Applicants can receive up to 20 per cent of their income from companies in the Iberian Peninsula. Spain also provides tax breaks for ‘digital nomads’ working and living in the country covered by the visa scheme.
According to Knight Frank experts, the issue of looking after the home while the owner is away is also an important factor. Whether it is being rented out or is just waiting for guests, it is worth taking advantage of the support and care of the property, carried out by an experienced office. You will then be assured that the house is in good hands, even if you are currently several thousand kilometres away and are just planning your next unforgettable holiday on the Costa del Sol.
A safe haven in uncertain times
A purely economic motivation for investing in Spain is also the economic situation on the Iberian Peninsula. The first factor is lower inflation in Poland, making a house or flat on the Costa del Sol a stable and attractive capital investment. Spanish consumer inflation (CPI) in November 2023 was 3.2 per cent, down from the 3.5 per cent recorded in October. As the Polish Economic Institute points out, citing Bloomberg data, the risk of recession in Spain is currently estimated at 20 per cent. By comparison, in Poland experts estimate it at over 40 per cent and in Germany as high as 75 per cent, while the average for the eurozone is 65 per cent.
At the same time, the cost of living on the Mediterranean is even lower than in Poland, due to the rate of price increases, which are reaching record levels on the Vistula. Buying a property protects your savings from a decline in the value of your invested funds. In addition, it opens up new opportunities that come with living on the famous sunshine coast. It is therefore no wonder that more and more Poles are choosing to buy property in Spain.
