Investors are now choosing real estate as one of the most attractive forms of capital investment. There is growing interest in houses and flats abroad. IQI Global has prepared a list of the safest countries for investing in real estate.
Rate of return is not everything
There are increasing reports of exotic locations where the rate of return on real estate investments is reportedly as high as several per cent. At the same time, there is all the time talk about the stability and security of such investments, which, as a rule, should be burdened with minimal risk and thus bring lower profitability. This is why an increasing number of investors, also from Poland, are betting on Spain. It is estimated that the real rental rate on the Costa del Sol is 4-6%, depending, among other things, on the location, as, for example, it may be higher in the dynamically developing Malaga.
The value and, at the same time, the stability of the Iberian property market is confirmed by IQI Global’s ranking of the safest countries to invest in property. Spain was ranked together with Portugal and Italy. The ranking is based on a number of indicators, including: market stability, potential for property value growth, rental prices or legal regulations.
Poles invest in real estate in Spain
In 2023, another record was set on the Iberian Peninsula by our compatriots. Last year, Poles purchased as many as 3,118 properties in Spain, 142 more than in the previously record year of 2022. Data from Registradores de España confirms that this gave Polish investors ninth place in the ranking with a market share of 3.35%. This compares with 1.6% in 2019, and in earlier years Poles were not even included in the statistics. Thus, one can see a strong upward trend over recent years.
Experts remain unanimous that Poles will continue to invest in property abroad. This is a global trend resulting from the search for stable deposits of capital, which is what houses and flats on the Iberian Peninsula are. Investors’ gaze is also directed beyond Poland’s borders by the double-digit growth of property prices in Poland. According to Eurostat data, it was three times lower in Spain in 2023, which confirms the stability of the market there.
Safe investment of capital
Our compatriots are fulfilling their dreams of buying property abroad. Among the reasons for their purchase, they point to high inflation in Poland and high interest rates. In addition, the desire to own a home in a sunny part of Europe, as well as the need to diversify the portfolio of possessions, speaks in favour of Spain. Geopolitical factors – including the war in Ukraine – are also key, making Spain a safe haven in the face of the uncertainty making itself felt in Central and Eastern Europe.
Currently, one in three properties in the Malaga area is being purchased by foreign investors. In the case of flats (living room plus two bedrooms type), prices are most often between €350,000 and €2 million, and a house with a pool and garden is now an expense of more than €1.5 million. The price is hugely influenced by location, terrace exposure, sea view or standard of finish. In the Marbella area, prices for a house reach amounts of up to several million euros, as it is simply a unique location.
