The ancient city of Granada is one of Spain’s most visited tourist
destinations and a great place to invest in buy-to-let property. The Granada
province offers investors excellent choice of winter sport resorts with ski
apartments and all year round holiday lets at the Costa Tropical and the city
of Granada itself.
Holiday lettings soon justify the initial outlay – a week’s
stay in a four bed, 2-bath apartment with pool located within a short walking
distance of La Herradura’s historic village centre for example costs starts at
EUR 370 – in a house that will have cost perhaps as little as EUR 45,000 to buy.
Close to amenities like shops, tapas bars and restaurants
and within a short distance of the sea, this type of property also benefits
from the Granada province’s close proximity to Malaga Airport, which is just an
hour’s drive away, and Granada International Airport, which can be reached
within 45 minutes’ drive from most inland holiday destinations.
Leisure time activities in the area included sightseeing in
the city of Granada with the amazing Alhambra Palace complex, but there are
plenty of outdoor pursuits holidaymakers can enjoy: tennis, horseback riding,
mountain walks and rock climbing, hiking, mountain biking as well as water
sports like diving, sailing and water skiing are all offered in Granada’s
immediate surroundings.
Brand new property can be as little as EUR 140,000 for a
2-bed apartment, while newly refurbished town houses with mountain views in
inland locations such as Las Alpujarras can be even less. A typical town house
that is yet to be restored and in need of modern creature comforts will cost
around EUR 45,000, however, there are also small country properties around that
have already been refurbished and are on the market for a similar price. A modern
finca will cost from EUR 150,000 upwards, depending on number of bedrooms,
proximity to the city of Granada and how size of the plot.
Typical country homes in Freila, Canilles, Cuevas Del Campo
and Cortes de Baza range from EUR 49,500 to EUR 160,000. Small mountain
villages like Huescar and Castillejar attract less attention from large scale investors
and more interest from private individuals looking for a holiday home. Here prices
may be as low as EUR 35,000 or EUR 40,000 for a traditional cave house that’s
already been restored and is sold with a pool.
For a change of scenery there are always the resorts at the Costa
del Sol, which can be reached in less than 1.5 hour’s drive. Glamorous Marbella
offers not just amazing beach clubs for day time fun but also bars, nightclubs,
live entertainment and restaurants for a nightlife that’s second to none.
The Spanish property tax system is still undergoing adjustments
and anyone looking to invest in Granada province should obtain expert advice on
all taxation matters before making an investment in the buy-to-let market.
While maintenance and running costs are lower than they would be in the UK or
Germany for example, tax on the property itself and the income it generates
must be taken into account, as it can be a considerable outlay every year.
While making a purchase of a country home may be more risky,
investing in the city of Granada is less so. Here a vibrant year-round student
population provides a strong, on-going demand independent of the vagaries of
tourism and holidaymakers’ tastes.
And there are plenty of bargains to be had – it doesn’t
always have to be a brand new apartment in the EUR 250,000 bracket that
overlooks the Mediterranean Sea!
Spain’s resale market is seeing a resurgence now that
homeowners are far more realistic in their asking price expectations. This
allows would-be landlords to negotiate on price, thus avoiding the sting of
recently increased VAT on property purchases.
Provided the resale property is in good condition and
excellent location, there is no reason why a EUR 175,000 resale apartment in
Realejo, a district of Granada city, should not make for an excellent student
home in the future. Offered with 2 bathrooms and 2 bedrooms and views of a
lovely traditional church, apartments like this one are suitable for both
holiday letting and long-term rentals.