The high-altitude Teruel province near Valencia has some of Spain’s most affordable real estate.
High Demand for Restored Historic Homes in Spain’s Rural Areas
The mountainous community of Aragon is tucked in between Spain’s most populous cities – Madrid, Valencia and Barcelona. Medieval villages, recognized by UNESCO for their Mudejar structures, are sprinkled among Aragon’s community.
Teruel province is home to many of Spain’s quaintest rural towns – Albarracin, Bronchales, Nogueruelas and the neighboring villages of Mora de Rubielos and Rubielos de Mora – that are favorites of foreign buyers.
Quiz:
Please choose one answer:
1) I am ready to join EXP Realty.
2) I am interested in EXP Realty and need more info.
3) I am not interested in EXP Realty.
Key:
* If you answered “#1” congratulations. You are about to join the fastest-growing real estate company in the world. Tim and Julie Harris are inviting you to join them at EXP Realty. Text Tim directly for the next steps: 512-758-0206. (text only please)
* If you answered “#2” please watch the videos and check out the other intel on this site. http://whylibertas.com/harris .
* If you answered ‘#3’ no worries. You will want to check out whylibertas.com/harris so you can at least know what EXP Realty is and why so many agents are moving to EXP.
Citing data from Spain’s National Statistics Institute, Elena Elias, CEO of Xplora Inmobiliaria, an agency in Teruel, said that this past March was the busiest on record since 2007 with sales transactions increasing +26% y/y. In Aragon, sales increased +23% y/y during March.
Prices Rising
Across Spain, according to BankInter, a Madrid-based Spanish financial-services company, prices rose an average of +6.6% in Q1 2022. Housing prices in the city of Teruel have increased approximately +10% so far in 2022.
As of May 1, according to RealAdvisor, a Swiss-based property valuation firm that specializes in analyzing the Spanish housing market, the average apartment in Teruel cost 1,071 euros/square meter or $105/square foot. Prices in the neighboring provinces of Zaragoza and Valencia came in at $155/square foot and $123/square foot respectively.
The average purchase price in Q1 2022 of a property in Valencia, Spain’s third-largest city, was 635,000 euros or $670,000, according to Karen Muninos, the sales manager of the Valencia branch of the luxury agency Lucas Fox. Closing costs increased +9% y/y in Q1 2022.
Muinos noted that prices in Valencia are half of what they would be in Barcelona and Madrid. “For investors looking for high profitability, this is a key factor.”
Who Are the Buyers?
Elias said that the majority of Teruel buyers are locals looking to either reside or invest. The same is true for buyers in rural Aragon.
Muinos said that approximately half the buyers in Valencia during Q1 2022 were Spaniards. The next largest buyer segment in Valencia came from the US. Her firm also had buyers from Germany, Italy, Lebanon, Mexico and Holland, along with a few rental inquiries from displaced Ukrainians.
Ana Vela, co-founder of The Singular Space, an agency specializing in unique Spanish properties, said that foreign buyers interested in Spain’s rural-home market segment are coming from France, Germany, Denmark, Latin America and the US, specifically from Miami. Vela said, “For some, the ideal scenario is to spend half of the year enjoying the house and (renting the house) while they are not there the other half.”
Market Basics
There are no restrictions on foreign buyers in Spain. Closing costs, totaling approximately 15% of the purchase price and paid by the buyer, include taxes, agent’s commission, property registration with the government and the notary’s fee.
Foreigners can get mortgages in Spain but borrowers from outside the EU are typically limited to a loan size of 60-70% of the property’s purchase price.
URGENT! Exclusive Invite: Join Premier Coaching for FREE! You read that correctly, Premier Coaching for the first 30 days is 100%, no strings attached FREE. Here is what you get: DISC Personality Test, Seller and Buyer Scripts, Presentations, Lead Generation Systems, Market Shift Plan, Real Estate Treasure Map, Members Only Community Groups (and a ton more). The best part is you will have a DAILY Live Coaching Call with a Harris Certified Coach. Yep, you read that correctly….every weekday you will attend a semi-private coaching session with your coach. All of this is 100% FREE. Of course, you want to join Premier Coaching. There is Zero Risk and joining costs you nothing. This is the Real Estate Success system you need in this quickly changing market. Join Premier Coaching NOW.
Thanks to The New York Times.
