Low Euro exchange rate compared to other major currencies.
Economic recovery underway… but not quite yet as close to 2006's speed.
Easier access to credit, very low cost of financing and low yield of monetary markets.
Low general level of prices (up to 50% less) affecting almost all realms of the economy: manpower, services, companies, cost of living, transportation, etc.
Advantage for foreign investors to access (and to finance) premium assets due to lower demand from financially strained local investors still bent on financial deleveraging.
The Spanish government's deliberate effort to attract foreign investment including a number of specific incentive measures, amongst which are:
- The SOCIMI whose favorable taxation is the favorite of large foreign investors.
- The Golden Visa program granting resident status is very popular amongst families.
- Collective investors may unite efforts to channel end-user individual investors.
Madrid, Barcelona and Valencia have far more attractive premium property than similar European cities. While the main flows of hot money go cities such a London or Paris, renown investors and trendsetters are setting their eyes in Spain (Bill Gates, George Soros, Carlos Slim, Goldman Sachs or Sovereign funds from the Middle East, to name a few).
The current availability of secured assets in prime locations at unusually high yields create unique opportunities for investors seeking to leave in three to five years time, when full recovery pushes up property values.