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Global Real Estate: Spanish Real Estate Market Strengthens in 2018

Spanish Real Estate Market Strengthens in 2018

After getting hit with a recession 10 years ago, the Spanish real estate market is making a comeback.

The Spanish real estate market was severely hit during the recession 10 years ago, but the market is recovering, and prices are growing, the volume of residential sales are up, and developers are coming back into the market.

While prices have still not returned to the highs achieved before the recession, overseas buyers and investors are back in the market. Buyers from Britain still make up the most significant market share of international buyers at about 15 percent, but there has been a rapid growth in buyers from European countries such as Holland, Germany, Russia, Norway, and Sweden. Prices have recovered—most in the capital of Madrid—but steady growth in prices is happening in Barcelona and one of Europe’s premier holiday destinations, Marbella.


With over 300 days of sunshine, Marbella, with its beauty and lovely beaches, attracts tourists and holidaymakers year-round. Marbella boasts world-class restaurants, excellent shopping and a picturesque Old Town with great character, history, and charm. For families, Marbella offers a fantastic quality of life, excellent schooling (including some top international schools), outdoor activities and excellent healthcare. Marbella’s international airport enjoys direct flights from over 50 countries, and Spain’s high-speed train system connects the city to major European centers.

Residential property development has been encouraged by the pending investment of major hotel groups in the area. It’s reported that the quality of building has improved dramatically in the area and developers are conserving the low-density environment, incorporating extensive community facilities and have become serious about environmental requirements.

One of the largest new residential developments is being built by a British company near Marbella at Ojen. It will eventually have over 600 luxury apartments spread over 10 phases. One of the unique features of the development will cater to the business professionals who conduct business from many locations worldwide–a high-end, shared workspace for the use of residents. Homes will be two, three and four bedrooms, with garages and storage, and will start at $552,900. The development will be gated with 24-hour security, and most units have breathtaking sea views.

Spanish Golden Visa Program

For non-EU nationals, an additional benefit of buying in Spain comes in the form of The Spanish Golden Visa program. This was introduced in 2013 to encourage foreign investors to purchase real estate in exchange for residency in Spain. You must invest at least $570,000 in real estate to qualify for the program. This does not include buying costs and fees, which are typically between 10 and 12 percent of the purchase price. Certain other conditions apply to all such applications.

Similar to other European countries, Spain would seem to be back as one of the significant destinations for international buyers and investors.

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