Buying a house in Spain allows you to enjoy a life in a sunny landscape with every comfort and next to the main European cities. But in the last ten years it is not so cheap as before. The price had an annual growth of 15%, and even if the coast area still has good prices for English, French, German and northern European tourists, it is not so cheap as before. Currently, the latest statistics show that the prices are increasing slower. Why are this changes happening?
There are many reasons for the growth of the prices for Spanish buyers:

1. The children of the Baby Boom generation are 30 years old now, and they are buying a house for starting a family.
2. People can have a higher income than the older generations because of the low unemployment and because women have accessed to the qualified work.
3. The decrease of interest rates and the extension of the terms for paying a loan allowed people to access to a cheap financing which adapts itself to the growth of the prices.

All these elements produced a growth of the prices in the whole Spain, which also affected the touristic residential areas. But there is another important element: the growth of the places in which these area are caused an increase of the number of Spanish people who choose to live in villages in the coast, where in the past only the inhabitants of these villages and the residencial tourists used to live in. So, with the growth of the demand, prices also grew.

Nevertheless, this process is getting slower, without any decrease of prices but with a moderation of increase (now it is about the 7%). We could say that prices of houses in Spain will not grow anymore and that Spain is the ideal place to live in the sunny beach. It is not so cheap as in the past, but it still is a cheap wonderful place.

No Comments »