Introduction
Welcome to our exploration of the remarkable growth in American demand for property in Spain. While the US market for Spanish real estate is still relatively small compared to major players like the UK, Germany, and France, recent figures reveal a rapidly increasing interest among Americans. This surge in demand can be attributed to several key factors, making it one of the most dynamic segments of the Spanish property market.
In this blog post, we'll delve into the factors driving the growth of American interest in Spanish real estate. First, what makes purchasing real estate in Spain different from doing it in the United States?
“The number of Americans living in Spain grew by 13% from 2019 to 2021, and home sales to Americans jumped 88% from the first half of 2019 to the first half of 2022, according to a report by the General Council of Notaries in Spain”. (Source CNBC JUL 17, 2023)
A Diversified Investment Landscape
One of the primary drivers of the growing US demand for property in Spain is the desire for diversified investment portfolios. As American investors seek to reduce their exposure to domestic markets and financial assets, they are turning to international real estate as a stable and potentially lucrative option. Spain's property market, post-recession, has been on the rise, and it provides a fresh opportunity for American investors to diversify their investments while enjoying the Mediterranean lifestyle.
Quick Search Results
Find below some quick search results for Properties For Sale on the Costa del Sol in Spain:
Properties for sale for over 1 million Euros on the Costa del Sol
Properties for sale for under 150,000 Euros on the Costa del Sol
Villas for sale on the Costa del Sol
Rural properties for sale in the South of Spain
Favourable Economic Factors
The post-pandemic economic landscape has brought about a surge in remote work, enabling individuals to choose their ideal locations for living and working. Spain's attractive real estate prices, coupled with the country's beautiful landscapes and pleasant climate, have made it an appealing destination for American professionals looking to enjoy a high quality of life while continuing their remote work or establishing new business ventures.
Spanish Healthcare
The most notable contrasts between the healthcare systems in Spain and the United States. The clearest reference to the medical system in Spain can be found here “Spanish Healthcare - Quality Care That Won't Empty Your Wallet”!
Strong Cultural and Historical Ties
The deep cultural and historical ties between the United States and Spain cannot be overlooked. Many Americans have familial connections to Spain or have experienced the country's rich culture through travel and study abroad programs. This connection makes Spain an attractive choice for vacation homes or retirement destinations, adding to the growth in demand for Spanish property.
America and Spain share a deep and intricate web of cultural and historical ties that have evolved over the centuries. These connections have left an indelible mark on both nations, shaping their languages, art, cuisine, and traditions. To appreciate the strength of these ties, it is essential to explore the historical and cultural interplay that has defined their relationship.
Colonial Legacy
The most significant historical link between America and Spain is the period of Spanish colonization in the Americas. Christopher Columbus's voyage in 1492 marked the beginning of European exploration and conquest in the New World. Spain established a vast empire that encompassed much of North and South America, leaving an indelible mark on the indigenous cultures they encountered. This colonial legacy profoundly influenced the languages, religions, and traditions of the Americas, as well as the architecture of cities, such as Mexico City and Lima, which still bear the imprint of Spanish colonial style.
Language
The Spanish language, which originated in Spain, has become one of the most widely spoken languages in the Americas. Spanish is not only the official language in 20 countries across North, Central, and South America, but it has also heavily influenced regional dialects, such as Mexican Spanish, Argentinian Spanish, and Cuban Spanish. The presence of Spanish in the Americas is a testament to the enduring linguistic bond between the two regions.
Whether you are interested in investing in the Spanish real estate market or merely planning to relocate there, it is essential that you are familiar with the local banking and real estate jargon, with this in mind we have written a post on our blog that we are sure you find very helpful. “Common Spanish Property Terms, Translated to English”.
Religion
Spanish colonization also brought the Catholic faith to the Americas. The impact of Catholicism on the Americas is profound, with many of the region's most important religious landmarks and festivals rooted in Spanish traditions. For example, Day of the Dead (Dia de los Muertos) is a unique blend of indigenous and Catholic beliefs, and the Basilica of Our Lady of Guadalupe in Mexico City remains one of the most visited religious sites in the world.
Art and Architecture
Spanish influence on the art and architecture of the Americas is evident in iconic structures like the Mayan pyramids of Chichen Itza in Mexico and the Baroque churches and cathedrals found throughout the continent. Spanish painters, such as Diego Velázquez and Francisco Goya, also left their mark on the artistic heritage of the Americas. The blending of indigenous and European artistic styles has given rise to unique and captivating works of art.
Cuisine
The culinary exchange between Spain and the Americas, known as the Columbian Exchange, transformed the global food landscape. Spain introduced ingredients such as tomatoes, potatoes, and chili peppers to Europe, which later spread to other parts of the world. In return, the Americas received Old World ingredients like wheat, rice, and livestock. This exchange revolutionized diets on both sides of the Atlantic, leading to the creation of beloved dishes such as paella, chocolate, and tacos. The varied Mediterranean cuisine of Spain includes dishes from every corner of the country. Fortunately, in Andalusia, we can indulge in both regional and non-regional delicacies, including those that are indigenous. The following article contains several timeless classics that never cease to amaze! “Typical Spanish foods are a must”!
Literature
Spanish and Latin American literature have made significant contributions to world culture. Spanish literature, from the works of Cervantes to contemporary authors, has had a profound impact on literature globally. Latin American literature, with writers like Gabriel García Márquez and Isabel Allende, has produced some of the most celebrated and influential works of the 20th century. These authors often explore themes related to identity, colonialism, and the fusion of cultures, reflecting the rich tapestry of the Americas.
Diaspora and Immigration
Spanish immigration to the Americas, particularly during the late 19th and early 20th centuries, has left a lasting imprint on the culture and identity of countries like Argentina, Uruguay, and the United States. In the U.S., Spanish-speaking communities have grown significantly, contributing to the country's cultural diversity and language diversity.
As you can see, the strong cultural and historical ties between America and Spain are a testament to the enduring legacy of Spanish colonialism and exploration in the New World. These ties have created a rich, complex, and diverse cultural tapestry that continues to shape the Americas today, forging a connection that spans centuries and continents.
Golden Visa Program
Spain's Golden Visa program has also played a significant role in attracting American investors. This initiative offers residency to those who invest a certain amount in Spanish real estate, making it a compelling opportunity for individuals looking to reside in Europe or spend extended periods of time there. The simplicity and attractiveness of this program have fuelled interest from US citizens. This program allows American investors to enjoy the benefits of living in Spain while also owning and renting out property.
The Digital Nomad Visa in Spain
What is a Digital Nomad? A digital nomad is an individual who travels and uses technology to conduct remote work from locations other than their country of residence.
Tourism and Rental Potential
Spain is one of the world's leading tourist destinations, and many American buyers are also considering the rental potential of their Spanish properties. The prospect of generating rental income through short-term vacation rentals or long-term leasing adds an extra layer of appeal for American investors.
Let us explore the key factors that make Spain an attractive choice for property investment, including its thriving tourism industry and rental opportunities.
Vibrant Tourism Sector
Spain has consistently ranked among the world's top tourist destinations, attracting millions of visitors each year. With its diverse attractions, from pristine beaches along the Mediterranean and Atlantic coasts to historical landmarks, world-renowned cuisine, and vibrant cities, the tourism industry in Spain is flourishing. This consistent influx of tourists provides an excellent opportunity for American investors to tap into a growing market by owning rental properties that cater to tourists.
Favourable Climate
Spain's Mediterranean climate, characterized by mild winters and hot summers, makes it a year-round destination. The weather attracts tourists during all seasons, ensuring a steady flow of visitors and rental income. Whether you're interested in coastal properties or those in the picturesque Spanish countryside, the climate will be in your favour.
Want to know the difference in climate between the coastal areas and inland areas in the South of Spain? Click on the image below.
Diverse Property Options
Spain offers a diverse range of properties, including beachfront villas, city apartments, rural retreats, and historic homes. Your choice of property can cater to different preferences, allowing you to diversify your investment portfolio. Popular regions for property investments include the Costa del Sol, Costa Blanca, and the Balearic Islands.
It doesn't matter whether you already call Spain home or you're just thinking about making the move there: it's always interesting to learn about the experiences of others and get a glimpse into the lives of some of the locals. Because of this, we are conducting brief interviews with coworkers, clients, friends, and acquaintances lasting only ten minutes each to give you an idea of the kind of people that live here as well as the way people go about their daily lives in Spain.
In the following brief interview, the American couple Jos and Mary-Ann Pluijmakers from Maryland share their thoughts on their experience selling and buying property in Spain.
You can read what Jos had to say here. "10 Minutes with Jos Pluijmakers"
Strong Rental Income Potential
Tourism and short-term rentals are on the rise in Spain. Platforms like Airbnb and Vrbo have gained popularity, making it easier for property owners to rent out their homes to travellers. The potential for high rental income is particularly attractive in tourist hotspots like Barcelona, Madrid, and the Costa del Sol. A well-managed property can provide a lucrative income stream.
If you are considering investing in a buy-to-let property on the Costa del Sol to rent out as a holiday let to tourists, we highly recommend you to read our Guide to Vivienas Vacacionales (Tourist Licenses) in Spain.
Strong Real Estate Growth
Spain's real estate market has been growing steadily since the global financial crisis of 2008. Prices have become more stable and competitive, making it an attractive option for both investors and those seeking a second home. The recent growth in property values has piqued the interest of American buyers who see the potential for a return on investment.
The surge in demand for real estate in Spain among Americans can be attributed to several factors.
According to industry insiders who were interviewed by the property portal Idealista, the elements that are driving the surge in demand for real estate in the United States are standard concerns such as the climate in Spain, legal security, minimal political risk, favourable property tax rates, and a decent quality of life. It is also beneficial to have direct flight connections to the United States from popular places such as Barcelona, Mallorca, and Malaga.
“United Airways to triple number of direct flights between Malaga and New York with new daily service” The American airline has chosen the Costa del Sol as the only holiday destination in Spain where it will fly every day during the peak season, with the new schedule being rolled out a month earlier than expected. (source SUR in English Friday, 27 October 2023)
The investment potential of Spanish property is another element that is driving demand growth in the United States. Compared to real estate in other European countries, Spanish real estate is considered to offer good value.
The numbers driving Spain's newfound stability are encouraging after a lesson in boom and disaster according to an article in the Financial Times "Why Spain is probably one of today’s most overlooked residential markets".
Conclusion
The surge in US demand for property in Spain is a testament to the various factors driving this trend. A desire for diversified investments, favourable economic conditions, cultural ties, the Golden Visa program, rental potential, and a robust real estate market are all contributing to the increasing interest from American buyers.
Investing in Spanish real estate not only grants you a slice of the beautiful Spanish landscape but also opens the door to a thriving tourism and rental market. As an American investor, you can leverage the attractive climate, diverse property options, and strong rental income potential. Spain's tourism industry, combined with investment and residency incentives, makes it a compelling destination for property investment.
While the American market for Spanish real estate may still be relatively small compared to other nations, its rapid growth indicates that Spain is becoming a preferred destination for American investors and individuals seeking a new place to call home. As this trend continues, it will be fascinating to see how it shapes the future of the Spanish property market and strengthens the bonds between these two nations.
Lastly, as a real estate agency established in Spain, we believe it is extremely important to give our audience in the United States information that is both informative and reliable. The time difference that exists between Spain and the various time zones in the United States is an important factor that must be taken into consideration. In the following article, you will discover the “Time Difference Between Spain and the USA”.
So, why wait? Explore the opportunities and consider making your dream of owning a piece of Spain a reality.
Buying or Selling Inland Country Property on the Costa del Sol
Contact us, your local rural Spanish property experts with over 30 years of experience selling proeprty in the Guadalhorce Valley located in the inland areas of the Costa del Sol in Spain.
Email: [email protected]
Call us: +34 951 242 157
Here's some advice for people buying inland country properties on the Costa del Sol... Work with a specialist rural estate agent with a proven track record and plenty of experience dealing with rural properties. There can sometimes be paperwork and fine details that only an experienced estate agent can guide you through sorting out... and even making you aware of in the first place!
We take great pride in providing a customised, personal service. We are a family-run business specialising in rural Costa del Sol properties, our aim is to help you find your ideal country property in our region of Spain.
