Lucas Fox International Properties, which operates in Spain’s most popular cities and coastal destinations, established offices in Madrid and Valencia in 2014 due to growing demand from overseas buyers in recent years.
Spain’s capital, Madrid, is currently undergoing a revival following a rocky ride during the last seven years. Its regional economy is forecast to grow well above the national average (2.8% according to Spanish bank BBVA), unemployment is falling and the property market is reactivating. Official figures show that the number of transactions was up 17% in 2014 over 2013 and have also signalled the first property price rises since 2007.
“Five years ago, Madrid was a city in decline due to the meltdown of the financial sector and bursting of the property bubble, two sectors upon which the Spanish capital was very much dependent ” comments Rod Jamieson, Director of Lucas Fox Madrid. “Today, following several key structural reforms and an important price correction in the property market, Madrid is back on the map as one of the best places in which to invest. The last year has seen a large increase in foreign investment from many different parts of the world.”
In the past few years Valencia’s position as a key tourist destination and business and investment hub has been aided by a government cash injection of nearly €4million, the success of hosting the America’s cup in 2007 and the transformation of the City of Arts & Sciences. Latest figures suggest that the number of property sales has increased by as much as 30% compared to 2013 figures.
Partner of Lucas Fox’s Valencia office, Juan Luis Herrero, comments: “Valencia has developed into one of Europe’s most exciting and progressive cities. It is known as the ‘California of Europe’ thanks to its long stretches of coastline, balmy temperatures all year round, renowned gastronomy, rich cultural heritage and beautiful architecture. It is no wonder that Valencia is increasingly becoming a target for opportunistic overseas property investors.”
Both Madrid and Valencia have seen property prices fall by as much as 40% in some areas since the start of the crisis and both cities now offer some attractive opportunities to overseas buyers, particularly in areas such as the Old Town and coastal areas in Valencia and the Salamanca, Chamberi, Justicia and Chamartin districts in Madrid. Lucas Fox is also collaborating on some key new developments situated in the heart of the city, geared towards residency clients and second home buyers.
“Madrid and Valencia offer foreign property investors three key things: value for money, an excellent quality of life and a safe long term investment,” adds Lucas Fox founding partner, Alexander Vaughan. “We believe that the desirable coastal areas of Barcelona city and province, the Costa Brava, Marbella and Ibiza will continue to prove popular for overseas investors during 2015 and beyond but this year we also feel confident that Madrid and Valencia will be attractive investment hotspots, appealing mainly to northern European, Chinese and Middle Eastern buyers.”
More information can be obtained at: www.lucasfox.com