Guide to Spanish Cities

Introduction

Spain remains the most popular destination for British buyers of overseas property, despite the scandals that have rocked the property industry on the Costas and the fact that the housebuilding industry in Spain has endured a torrid time on the stock markets in recent months. A natural consequence of this continued popularity is that buyers are constantly looking to find the next area for growth, and have started to turn their attention to Spain’s cities.

The region

While property in the major cities of Madrid and Barcelona are still popular, there are some exciting investment opportunities in the regional capitals around Spain, both for those looking for a holiday home to get away from the UK to better weather and a better lifestyle, and for those looking an investment opportunity that will offer returns that few other locations in Spain can in a mature market.

The market for city properties differs significantly from what you will find in the UK, and even from what you will find elsewhere in mainland Europe. On top of this it is a situation that is changing rapidly as the social structure of Spain’s cities and towns adapts to the changing demands of the population.

Much of the Spanish population are only second or third generation town and city dwellers, and traditionally, young people have lived near to or in the family home until marriage, unlike the trend in modern times in the UK for the young to leave home at the earliest opportunity.

Thus, there are less young people resident in city centres in Spain than might be expected compared with the UK. The city-dwelling population tends towards professionals and office workers, though as the youth begin to venture more into moving around to university and jobs at a younger age, there are beginning to be more and more properties and developments targeted at the younger market.

On top of this social change, many Spanish cities have seen radical redevelopment and regeneration in conjunction with events and inward investment as a spur to growth. The trend was started with the Olympics coming to Barcelona in 1992, followed by the arrival of a Guggenheim museum in the previously industrial city of Bilbao on the Atlantic coast. More recently, 2007 saw Valencia benefit from hosting the Americas Cup.

There has also been a marked benefit from government projects for regeneration in other Spanish cities. Murcia is seeing a boom in building and student accommodation through the conversion of its military airport facilities into full international commercial operations. Likewise, Alicante, Almeria and Malaga are also seeing more interest in their property markets as buyers seek opportunities near the international airports.

Climate

Spread across the Iberian peninsular, the climates of Spain's regional cities varies from the wet and temperate northern coasts of Galicia to the semi-arid heat of the southern cities.

Getting there

The advantage with buying on one of Spain's cities is that access will be one of the easiest aspects of owning the property. Not only are Spain's cities served extremely well by both traditional and low cost scheduled carriers from the UK, but it also has a well-developed and reliable internal flight network backed by modern inter-city train services.

Property

The property generally offered for sale in Spanish cities is converted and renovated original property that may date back to before the Second World War within the city centre, or a selection of new developments that are being created outside in the suburbs.

The original period properties are often renovated to have air conditioning and modern lifts among their accoutrements, though in many cities it is still possible to buy an untouched apartment that you would be able to modernise yourself.

Outside the city centres, new properties are being constructed in commuter areas to take advantage of the improved transport links available to those who prefer to live away from the hustle and bustle of the city centres.

One other type of property attracting the attention of the overseas property investment markets at the moment is student accommodation purpose-built for the growing population of students choosing to live away from the family unit while they are studying. Good rental returns virtually guaranteed to owners are the most attractive part of these properties.

Local life

The diversity and colour of life in the Spanish cities ensures that each of the regions takes its individual identity from its capital city. From the earnest Basque regions to the laidback and relax southern cities, there is something to attract everyone.

Conclusion

Although buying a property in one of Spain's cities is not the traditional dream of people looking to buy their overseas property in Spain, the realities of the market both from the point of view of price levels and market security make cities an ideal option for many.