Costa del Sol and Spanish properties for investment and lifestyle

Spanish Property Return on Investment Guide

Buying property in Spain offers tremendous opportunities for strong return on your original investment. Spanish property value has appreciated more strongly than most of its European counterparts and the demand for properties is set to continue with an estimated 500,000 purchases being forecast between 2004-2009.

Whether you are purchasing you Spanish property as part of a lifestyle decision or as a commercial venture, the most important aspect to consider is resale value and return on your Spanish property investment. As with all property, the maxim 'location, location, location' applies. Depending on your property objectives, your budget and your investment time scale, the International Property Partnership can find the best property for you. We've put together the following points which you should consider when weighing up the investment opportunities for purchasing property in Spain.

Investing in Spanish Property checklist

What do I want to use the property for?

• Long-term living
• Make available to family and friends
• Rent out when not using the property
• Short-term property investment
• Long-term property investment

What areas are best suited to your property objectives

Just looking in the Costa del Sol will give you a flavour of how diverse the Spanish property market is e.g. the busy towns of Malaga and Marbella, the less developed towns of Miraflores, Calahonda, Cabopino and Elviria and the more traditional inland areas of Alhaurin el Grande, Coin, Ronda and Monda

What are the property investment opportunities in your preferred areas of Spain?
Do some research on the areas you are interested in purchasing property. How has property appreciated in this area and the surrounding region. What investment demand is forecast for the future? Profile the type of purchasers of property in the area to date. The International Property Partnership can advise you on return on investment forecasts for your Spainish property.

Infrastructure and Amenities and thier effects on your property investment
Visit the town hall and get acquainted with any plans for future development. The creation of new facilities such as golf greens, shopping centres and leisure centres can positively effect the resale purchase price. Developments in infrastructure such as new roads contribute to appreciation on your investment in the Spanish property market.

How long is the Season
If you are buying the property to rent then research the length of the season. In the Costa del Sol the season last for ten months of the year with the busiest months being between April and September. Activities such as golfing, sailing and cultural festivals are the main draws for the four remaining months. Consider the rental opportunities for each property you view in the context of the local demand.

Buying off-plan
A good way to ensure a strong resale value is to buy your property off plan. This gives you access to a property which has not yet gone on the market at considerably lower than market price. With an initital payment of just a 20% to 30% deposit, you usually do not have to pay the balance until development completion. Developments can take between 2-3 years to complete and your capital investment is already appreciating. Read more about property investment and buying off plan in Spain