A simple and obvious question posed to me by a colleague today is why do people continue to buy Spanish property in such relative large numbers when on paper there are so many better places to make International property investments? We recently had a buyer who was about to pull out a sale and buy a property in Dubai instead. His reasoning was very simple the rental yields and investment potential was better than Spain. However he still wanted to pursue the sale in Puerto Banus, Spain. So the obvious question is why?
The truth is a very simple one in this recession with such brilliant property bargains to be had and so many amazing finance deals we have lost track of why people buy property in Spain. Yes people are looking for a great deal but in reality they are drawn to Spain and Marbella because of Sunshine, Location and most importantly lifestyle. The majority of our buyers say they are buying for investment but in reality they are not. They are buying for lifestyle.
A simple good example of this is two apartments in the same development with different prices means an investor will buy the cheaper unit because when he rents the property out he will get a better yield however the majority of our buyers will pluck for the more expensive one because it has a better view for when they use the apartment 3 weeks a year, clearly not an investment decision. I came to live in Spain because it was only 4 hours from my house in Andalucía to my meeting in London. This is something the more exotic destinations such as Barbados or even Dubai just can’t deliver. So when you are looking for a property bargain in Spain just remember the reason you’re buying, it’s for lifestyle not investment.