Javea Property Rental Market
Spain has enticed Northern Europeans for decades with the promise of a more relaxed way of life in the sun. With over 60 million tourists visiting Spain every year the countries short term and holiday rental market is defying the property market downturn and continuing to grow.
The ownership side of the property market has cooled down since the worldwide recession after an impressive 10 year boom. However, it`s a different story with holiday and short term rental showing a healthy and strong market.
The decline of the housing market due to the economic downturn in Spain has affected the long term rental market, especially choice and availability. The Spanish government have however, taken steps to encourage the rental market and bring it up to speed with other European countries. Problems such as long eviction processes lasting years and other lengthy legal processes meant a more favourable option saw properties left empty rather than rented out. Thousands of square metres of apartment space have sat empty in previous years waiting for market conditions to improve or due to complex legal issues. Measures have now been put in place to speed up these processes and will see a steady rise in the number of rental properties available and increase rental popularity.
Choice and availability on the long term rental market in Spain has culturally been low due to the Spanish preferring to own their own home rather than rent and in the past this has contributed to a weak rental market. With mortgages harder to find and first time buyers finding it hard to pay inflated house prices the rental market has seen a surge in demand.
Javea long term rentals are hard to find.
There can be little doubt that Javea has a strong rental and sale market compared to other parts of the Costa Blanca and the other ‘Costa’s’. In fact the long term rental market is very much in favour of property owners at the moment, good quality rentals can be hard to find, and almost impossible for the six ‘summer’ months of the year. The reason is pretty simple, apartments and houses in the area can be rented out for more per week during the summer, than long term renters pay per month year round.
Javea, just like many areas of Spain, has always been a popular spot for UK holidaymakers and likewise has also enticed many people hoping to invest in property and enjoy the beginning of a brand new life in the sun. Once known for its widespread property bargains, Spain like much of Europe has also come under pressure from the changing economic climate and an unstable market created by the debt crisis.
Yet despite the worldwide recession the rental market is still seeing steady results and Javea property investors are choosing to be wise by renting out their property in a bid to reap the rewards. Renting a property either short or long term ensures an income and of course there is still the option to sell further down the road when the market is more favourable.
It may seem likely that the short term rental market is thriving due to the continued demand for Spanish holidays, but it is in fact saturated with locals who are often unable to secure finance or take that first step to getting a mortgage. As with other countries, banks are increasingly reluctant to lend and young people are renting either through necessity or through choice as they wait patiently for conditions to improve.
For those considering the risks and going ahead regardless, bargains are plentiful with lists of repossessed properties easily available outlining good options at affordable prices. The serious investor with money at their disposal will have first pick of a choice of desirable properties in the best locations both inland and along the glorious coastline.
In fact the more foreign investment is seen here, the stronger the market will become and the more rapidly things will improve for investors. While it`s true that the market is struggling in some areas, there remains a demand in particular for traditional villas in prime locations, which are more affordable than ever before and can be a sound investment if managed well.
The economic downturn has taken a lot of potential investors out of the market as spending cuts become necessary, but for an experienced investor with good skills and knowledge, there are still good opportunities to do well in the business.