Ten per cent of Spaniards buying property today invest in holiday homes on the coast as part of their retirement plans, claims the chain of estate agents Alfa Inmobiliaria.
The low price of holiday homes on the coast compared to property in city centres, plus the need to save for retirement, are the main reasons behind the decision to buy a second home on the Spanish coast, say Alfa.
Spaniards with limited budgets see coastal homes as the safest bet for long-term pension planning, given the current level of prices on the coast. Their investment plan, typically, is to move to a holiday home upon retirement, and sell the family home in the city.
“Some things haven’t changed,” says Jesus Duque, VP of Alfa. “For the average Spaniard a home is the traditionally favoured method of saving. For retirees, who see a pessimistic future for their pensions, investing in property looks like a good option.”
Budgets start as low as €35,000 or less, with investors more interested in consolidated surroundings than beachfront locations. Proximity to amenities such as shops, medical facilities, transport and leisure facilities is more important to Spanish pensioners than sea views or walking to the beach.
“House prices are at the bottom of the curve, whilst there is still a wide range of homes for sale on the coast, and mortgage financing is getting more accessible, including fixed rate mortgages that appeal to risk-averse investors,” says Duque, explaining why a growing number of Spaniards are investing in holiday homes for retirement.