There has never been a better time for Indians to invest in international property markets. Due to the stagnation of the Indian real estate market, investors are looking at new avenues to invest. The strength of the Rupee and relaxation of rules that permit Indian residents to invest overseas have further created an investment climate favourable for international real estate investment, and Spain’s Costa Blanca has seen an increasingly high level of this inward investment.

Indians are increasingly looking for good realty investment opportunities abroad. A recent wealth report created by a reputed London-based real estate consulting firm, India’s high networth individuals are heavily investing in real estate in other countries; and their numbers have grown by 166% in the last 10 years. Almost 50% of all India’s UHNWI & HNI have foreign real estate in their portfolios, which is the highest in the world.

Indian residents are investing in international properties for appreciation in capital value, end use or rental earnings. Whilst the UK, Singapore and Dubai were traditionally the preferred destinations for Indian property buyers, according to property analysts, Spain is quickly catching up.

More Indians and NRI’s are buying property in Spain

A growing number of Indians and NRI’s are keen to buy property investments in Spain.  A strengthening economy, rising property market, a stable and well established legal system, coupled with a favourable tax environment and straightforward buying process all contribute to the popularity of Spain as a destination for Indian property investors.

According to Andrew Straw, head of global residential services at realty consultancy Knight Frank, “Indians probably represent a broadest purchaser base of any incoming nation.”

He said that in comparison to customers from the Middle East or Russia, who are just interested in owning “trophy assets,” or the ones that are priced anything between 2 million to 20 million euros, Indians are also buying relatively cheaper assets, which they would prefer either to be their residence, or a second home.

“Interestingly, the Indian purchaser base is much broader. Although there are some Indians buying trophy assets and iconic buildings and hotels, the vast majority are buying investment properties between €300,000 and €500,000 in different parts of Spain” said Straw.

At least 70 percent would be for their own accommodation, he added. Straw also said that the phenomenon is not just restricted to Madrid, but is being witnessed across the country.

Indians and NRIs Buying Property in the Regions, not just in Madrid and Barcelona

Another trend that we are seeing is that investors from India are generally looking towards the regions for added value, higher rental yields, and potential for significant capital appreciation.  A recent report revealed that whilst in Madrid, in terms of numbers, Indian buyers made up just 5% of purchasers, in other Spanish areas, such as Alicante, and the surrounding Costa Blanca, Indian buyers make up a much larger part of the market.

The prime reason for this is that property in Alicante, and the broader Costa Blanca, represent much greater value for money, and also the fact that there is much greater scope for capital appreciation and higher rental yields. The economy in Alicante is going from strength to strength, and the COVID pandemic is actually fuelling this growth, as opposed to most other countries, where the pandemic is having a catastrophic affect on the local hosing markets. One of the reasons for this is the realisation that workers no longer need to be tied to their desks, and the consensus that remote working is not only an option for most companies’ workforces, but actually increases productivity, and reduces fixed overhead costs. And with Alicante boasting hundreds of flights each day across the whole of Europe, makes it an ideal location for remote working, and for people seeking a second home or a ‘Plan B’, to escape tightening COVID restrictions.

Spain Invest has helped dozens of buyers seek second homes and permanent residences in the Alicante region. They have recently introduced their new, pioneering ‘Buy – Renovate – Live’ model, whereby the company uses their market knowledge and network throughout the city to source properties at below market value, but which require refurbishment. The company project manages the refurbishment process in accordance to the specifications of the client, and at the end of the process, the client has a built in equity in the property, in addition to a high specification apartment in which to live in, or to rent out as an investment. Alternatively, investors who do not wish to reside in the property either on a full time or part time basis, can rent the property out on either a short term or long term basis, and earn an investment yield significantly higher than if they had bought a property in Madrid or Barcelona.

For more information on either the ‘Buy – Renovate – Live/Rent’ Model, or for more information on the property market in Alicante in general, please no not hesitate to contact us to schedule a free consultation.