Why buying real estate in Spain is a good idea for Belarusians?

Spain as a solution for those who dream of warmth

If you are bored with the dreary and rainy weather of Belarus, and you dream of being in a warm place at any moment, Spain may be the ideal option to solve this problem. The process of buying real estate in this country is not as complicated as it may seem, and for many Belarusians it turns out to be quite affordable, especially if they decide to sell their apartment in Minsk.

The diversity of Spain

Spain is an extremely beautiful and diverse country that has long attracted the attention of many Russian-speaking people. It offers many advantages, making it an ideal place for both beach vacations, active entertainment or cultural travel. Spain has many advantages that make it especially attractive for tourists and those who plan to make investments in residential real estate.

Expert opinion

We talked toVitaly ShalaevVitaly Vitaly, Director of Advisor Red Group, who shared his views on the opportunities to purchase real estate in Spain, as well as the benefits of this process and the potential challenges that buyers may face. Vitaly noted that in 2018, the average value of transactions ranged from€150 to €170 thousand, and in 2019 this number has increased significantly.

Statistical data

According to the stats:

• 41%buyers in the Costa Blanca region are foreigners.
• In total, foreigners make up more than12%of the total number of buyers in Spain.
• Of which only2.5%- Russian-speaking citizens.

This data is based on 2018 statistics, as information for 2019 has not yet been prepared.

Trends in the real estate market

Vitali also mentioned that in 2019, real estate market activity decreased slightly among both foreigners and locals, but the decrease was negligible. In 2018.65 thousand foreign buyershave purchased real estate in Spain, which is quite an impressive figure.

Transactions with new real estate objects

It is noteworthy that most of the transactions are with new properties:

• 38,5%transactions are concentrated in four cities: Madrid, Barcelona, Alicante and Málaga.
• New housing accounts for only18,5%while secondary real estate takes up as much81,5%.

Expert conclusions

At the end of last year we had the opportunity to discuss the situation with a number of Spanish real estate agents and they all independently confirmed that we have seen a decrease in the number of transactions in 2019, especially among Russian-speaking buyers. However, the average purchase check has increased. This indicates that buyers interested in more affordable properties are leaving the market as they cannot afford to buy, while the number of transactions with prices from€300,000and higher continues to rise.

So while the total number of sales has decreased, the cash volume remains the same.

Conclusion

These data emphasize the continuing interest in the real estate market in Spain and the need for careful analysis of the situation before making a decision to buy. Experts draw attention to the importance of taking into account both current trends and local peculiarities in order to further preserve their investments.

Diversity of real estate buyers in Spain

Property owners in Spain can be roughly divided into different categories, each with its own reasons and purposes for purchase.

Group 1: Obtaining a “golden visa”

The first group, though small, consists of those who seek to obtain the so-called“golden visa”. These buyers are interested in purchasing a property in order to apply for a visa that will enable them to start the citizenship process in the future. In order to successfully obtain this visa, it is necessary that the value of the property is at least€500.000.

Group 2: Dachas and country houses

The second group is represented by buyers who are looking for summer houses or country houses. As a rule, such people choose housing on the southern coast of Spain, trying to stick to a budget in the area of€300.000. This allows them to enjoy their vacations by the sea. Many of them spend several months a year in their homes, using this time to enjoy the climate and nature of the region.

Group 3: Investors

The third category includes those who consider real estate as an investment opportunity. The Spanish housing market has shown a positive growth trend in recent years, which makes such investments very attractive. The current situation gives hope for a stable income from real estate investments.

Group 4: Transfer to Spain

The fourth and final group of buyers are those who are planning a move to Spain and are looking for a home to live in permanently. В2018average price for deals was within the range of€150.000-170.000but inin 2019growth of this indicator is observed. There is no exact data yet, but according to expert Vitaly Shalaev, the trend of price increase is still in place.

Price features of the market

On the real estate market, you can also find apartments at starting prices from€40.000The security risks in such areas are important to consider.

Popular regions for foreign buyers

In terms of popular destinations for overseas buyers, five main regions can be identified:

• Valencia - 78 thousand transactions in 2018
• Catalonia - 82 thousand transactions
• Madrid - 76 thousand transactions
• Andalusia - 102 thousand transactions
• Canary Islands - 22 thousand transactions

The southern regions of Spain are consistently in demand, as buyers prefer the warm climate and proximity to the sea. At the same time, northern areas, such as the Basque Country, have their own peculiarities, and the number of transactions here is much lower than on the southern coast due to the specifics of the region.

Total housing prices

The price range for housing varies greatly from region to region, which is reflected in the average level of transactions. For example, inBarcelonaandMadridaverage price is approx.€500.000. For this amount you can find housing that does not belong to the category of luxury, but still suitable for comfortable living. If we are talking about private villas, the starting price reaches€1.500.000even in less privileged neighborhoods.

Prices for popular resorts

At popular resorts such as.AlicanteandCosta BlancaThe cost of apartments starts at€220.000for100 square metersduring the construction phase and reaches€300.000upon completion of construction. This means that buying an apartment in sought-after new neighborhoods is becoming a real possibility for many people.

Housing market situation in Alicante

If you pay attention to the sector of residential real estate economy in Alicante, especially in its historic part, where people with average incomes live, you can see that the cost of housing ranges between 100000 and 150,000 euros for a similar living space. This difference in prices is due to the different social composition of the population of the area, resulting in a very large difference in prices.

There are areas where it is possible to find living space for 40000-50000 euros, but there is a safety risk when going out in the evening or at night in such areas. These areas have a high concentration of migrants from Morocco, Algeria and Roma. According to statistics, crime here is noticeably higher than in quieter neighborhoods. Unfortunately, this situation is typical of many European cities, according to the director of Advisor Red Group.

Crime situation in Spain

When it comes to the crime situation in Spain as a whole, Barcelona stands out as one of the most problematic regions of the country. This is primarily due to two factors:

• the presence of a major port;
• an influx of tourists.

If you don't keep an eye on your belongings, the likelihood of losing your wallet or bag is extremely high. Street vendors can often be seen at the exits of metro stations offering goods of questionable origin.

The popularity of bicycle rentals

This, in turn, makes renting bicycles in Barcelona very popular: tourists can buy them for 150000 euros and rent them out for only 50 euros a day, which turns this activity into a profitable business.

Comparison of economy class and comfort class apartments

If we consider the differences between economy class and comfort class apartments in Spain, the main difference is their location.

How Spaniards cope with the cold

When it comes to how Spaniards do without heating, the phrase “We dress warmly” is often heard. Surprisingly, in winter, locals prefer to wear several layers of clothing, including warm socks and shoes, even when inside the walls of their own homes. This demonstrates their distinctive lifestyle. While many foreigners install radiators or actively use air conditioners to increase comfort, Spaniards find other ways to cope with the cold. This is what Vitaly Shalaev is talking about.

Utility costs in Spain

However, the lack of a heating system is not the only feature of utilities in Spain. Significant costs are also associated with other utilities. While prices may vary by region, the average utility bill for an apartment of about 100 square meters is approximately €100-150 per month. Villa owners typically face much higher payments.

Renting out real estate

Often foreigners, buying housing on the coast, intend to use it exclusively during the tourist season, and outside of this time - to rent it out. This can be both short-term rentals and long-term rentals. This approach can be a profitable business.

• The director of Advisor Red Group points out that when buying real estate in popular tourist destinations such as Benidorm, Alicante or Torrevieja, you can get a mortgage of between €100,000 and €200,000.
• After that the accommodation can be rented out for €50-70 per day, which is quite profitable.

Legislative aspects of buying real estate

Interesting fact: Spanish legislation does not create significant barriers for those wishing to purchase real estate. Anyone has the opportunity to buy an apartment or villa. However, tax aspects should be taken into account:

• A 10% tax must be paid on the purchase of a secondary residence.
• For the purchase of a primary residence, 12%.

An important point is the strict control by the law over the sources of money. Each buyer will have to prove the legality of his funds, which makes bank transfers the most common method of payment, while cash is used only at the initial stage - when making an advance payment.

Registration of real estate through legal entities

Some get out of the situation in an original way, registering expensive real estate on legal entities established in offshore zones. Mortgage rates in this country range from 2.2% to 3% with a maximum repayment period of up to 30 years.

Security of real estate transactions

It can be noted that in Spain there is no concept of “unscrupulous developer”. Although there are companies that may have litigation or minor delays in construction, there is no need to fear situations such as “double sale” or “cash for clunkers”. Legislation actively monitors large construction companies.

Procedure for notarization of transactions

Every real estate purchase transaction is subject to mandatory verification by a notary. He carefully analyzes all documentation and confirms its correctness. Due to the language barrier, it may be difficult for Russian-speaking buyers to conduct the transaction on their own, which creates additional obstacles in the process of buying a home.

Conclusion

In conclusion of this article, I would like to summarize the main points I have considered when discussing the topic of buying real estate in Spain for Belarusians. Spain, with its warm climate and a variety of cultural and entertainment opportunities, is an attractive alternative for those who are tired of the endless cloudy weather in Belarus. Against the background of growing interest in Spanish real estate, it is pleasant to note thatthe average Belarusian can afford to buy housing here.especially after selling my apartment in Minsk.

I hope that the information presented in this article will help you to get a full understanding of the prices and dynamics in the real estate market in Spain. The main regions, such as Costa Blanca and Andalusia, show stable demand, especially from foreigners, which confirms their attractiveness for purchase for both vacation and investment purposes.

Highlights:

• Vitaly Shalaev's report will shed light on the mechanisms and trends in the real estate market.
• Variety of object types- from “golden visa” to budget options for the summer house.
• It is important to be mindful of the potential pitfalls and seek professional help.

Moreover,upcoming changes in the real estate market may create new investment opportunitiesso I encourage readers not to miss a moment and to actively explore all available options.

Based on the above, we can confidently say that Spain opens the door to new acquisitions and unforgettable experiences. I hope that everyone who is interested in buying real estate in this sunny country will find what they are looking for. Spain is waiting for you!