As 2017 draws to a close, the immigration policies and prospects for Spain in 2018 have become a focal point for many individuals looking to immigrate to the country. Whether through the €500,000 property investment visa or the non-lucrative visa, a key factor involved in Spanish investment immigration is real estate: the property investment policy requires purchasing a home (generally, as property prices rise, rental income also increases). Therefore, housing prices have become a critical consideration for investors looking into Spanish immigration.
Spanish Housing Prices
In 2017, Spanish housing prices generally showed an upward trend. According to the latest Housing Price Index released by the National Statistics Institute of Spain, the average price of vacant properties for sale has risen for 14 consecutive months. Among these, new homes increased by 6.5% compared to the same period last year, while prices for pre-owned homes rose by 6.7%.
Overall, housing prices across almost the entire country of Spain are rising. According to research reports from professional institutions, apartment-style residences in Spain have increased by 9% compared to 2016. However, as in previous years, the regions with the highest growth remain Madrid and Barcelona.
Furthermore, with the continuous recovery of the Spanish economy and the growth in employment, 2018 will mark the fifth year of a rebound in Spanish property prices, reaching levels not seen since 2011. Professional institutions predict that housing prices in Madrid will rise by approximately 10%.
Spanish Immigration Policy
Regarding immigration policy, in May 2017, Spain suddenly announced that the €500,000 property investment visa would cancel the eligibility for two categories of accompanying persons (parents of the spouse and children of only one spouse), signaling a clear tightening of policy. Although there is currently no explicit information indicating that the €500,000 property investment policy will be further tightened in 2018, based on precedents from other European countries and Spain's sudden policy tightening this year, further restrictions or a sudden closure of the policy are not impossible. Therefore, those who wish to immigrate should cherish the current opportunity.
Currently, clients immigrating to Spain still primarily choose the €500,000 property investment route. As the cost of purchasing property in popular immigration cities like Madrid and Barcelona continues to rise, the location and size of properties purchased for the same price in these two regions in 2018 will be significantly affected.
Given the current development of the Spanish real estate market and the rapid growth trend of immigration, it is recommended that investors interested in immigrating to Spain make preparations early. Once Spanish housing prices return to pre-economic crisis levels and the economy continues to improve, the current relaxed immigration policy will inevitably become more expensive, be tightened, or possibly even be terminated. By then, it will be too late to decide to invest!