1. Security: political uncertainty more often than not leads to stock market instability but demand for real estate in Spain is strengthening especially inland – areas away from the overpriced costas and their history of boom and bust.
2. Rental yield: bank interest rates are at an all time low and some reports indicate they might even edge lower. Interest in the rental market however is surging ahead both for short-term tourism and long term rentals with yields of 10% or more easily achievable for a low entry level investment.
3. Tangible asset: over and above the financial aspects of investing in Andalucian property let’s not forget the tangible benefit to investors of having a holiday home in one of the most beautiful areas of Europe with the most benign climate.
4. Capital growth: prices are only now beginning to recover from the 2008-9 economic turbulence and demand for the most attractive properties is beginning to outstrip supply with the obvious impact on prices.
5. Inheritance: protect your family wealth – Andalucia passed a new law earlier this year which drastically reduces and often completely eliminates inheritance tax.