Spain can be considered a country of property owners, where far fewer people rent than those who own a residence.
This is due to it being very profitable to be an owner in Spain. Nevertheless, there must be no confusion: there is a very dynamic seasonal or vacation rental market. This is not a contradiction; it is due to the great activity of the population, the huge flow of tourists from around the world, the privileged geographic location, economic and political stability, and the ease of making a profit on medium-sized investments in the most dynamic market in the world.
Residences in places with high tourism potential, such as the southeast of Spain, the Costa Blanca, are a safe haven with better profitability and greater security than investing in the Nasdaq or American Government Bonds; more so than other European or United States markets. Nothing moves with the force and guarantees of the residential market in the Costa Blanca.
INVESTING IN THE COSTA BLANCA.
The Bank of Spain, the regulatory body that acts as the Federal Reserve, although bound by the decisions of the European Bank, estimates that profitability in the Spanish property sector – especially on the Mediterranean coast – has remained at over 7% for the last 20 years.
The profitability of a residence in the rental market is over 3.4% (data from the second quarter of 2023), as well as property values increasing by over 4%. This generates the gross profitability of over 7% mentioned. In comparison with other assets, investing in the Costa Blanca is not only a safe, but also a profitable choice.
In recent years, investments in the North American stock exchange, the Nasdaq, reached over 17%, but there were also losses of almost 4%. Investment in the Dow Jones index generates sustained profitability, but always over very long periods.
Stock market investment has the characteristic of being more profitable, but also of suffering greater risks and being less secure than investing in a residence on the Costa Blanca. The same occurs with the profitability of 10 year American Government Bonds, placed at 7%, values that the property sector in the Costa Blanca offers annually.
The appeal of the Costa Blanca as an investment has to do with the strong potential for tourism and second residences in a destination with high demand throughout the European Union, but also with its capacity for attracting residents from other continents, who seek quality of life, social peace and political stability. Why? Because what the Costa Blanca offers is the perfect combination of citizen safety + political stability + public services + tourist appeal + ancestral culture and leisure for everyone.
