Reasons for buying property in Spain
28/09/2018
Ignacio de la Torre, a professor of finance and economics at the Institute of company lists three reasons why you can bet on housing in 2014. He believes that the price will stabilize in the new year. The professor argues his view of the market indicating the liquidity injected by central banks (the property prices are directly affected by this magnitude), the interest rate of the liquidity and price attractive to foreign investors.
According to Ignacio de la Torre, three factors explain that prices will stabilize at a higher level than historical ratio: a) the liquidity injected by central banks, would be above 20% of GDP, which would exceed three times the historical (note that asset prices are directly affected by the magnitude of the indicated liquidity);
b) the price of the liquidity (the interest rate) at a much lower level than the historical average;
c) arbitration between property prices and income, which is generated when the price is attractive for foreign income. This causes massive influx of foreign investors, which is clearly the case since 2013. A study shows that the demand for property in the Costa Blanca, in the provinces of Alicante and Valencia, is continuously growing. Always more and more foreigners make the decision to buy property on the Costa Blanca, or invest in a business in Spain.
