Looking to buy investment property in Bilbao? It’s a sound choice, yet one that must be executed correctly. This article tells you about buying investment property in Bilbao, the types of deals available and the likely returns. Remember, buying property in Bilbao has, on average, yielded in excess of 8% returns per year, and significant capital asset growth.
Buying investment property in Bilbao with cash outright is also a sure fire hedge against any rise in interest rates. Some investors look to buy properties in need of renovation or a change of purpose. They then renovate those properties and rent them out on a long term or short terms basis. Many investment properties in Bilbao are purchased by non Spanish Nationals and are either used as a holiday homes or straightforward by and hold investments in Bilbao.
Once these properties have been renovated and rented then investors in Bilbao may refinance the property by taking a mortgage over the property at a higher value, using the income to pay the mortgage and reinvesting the profit from the deal into more property in Bilbao or elsewhere.
How easy is it to buy investment property in Bilbao?
Buying an investment property in Bilbao might be more complex, but Spain is a very welcoming country for foreign buyers as foreign ownership of properties in Bilbao has really helped lift and stabilize the local economy.
The procedures for buying a property in Spain as an expat are relatively straightforward. Before buying, you’ll require a financial number, which can be obtained by visiting a police station with your passport. This is typically processed on the same day for Spanish or EU citizens, but may take a little longer for other nationalities.
Financing an investment property in Bilbao can be done by cash or mortgage charge. It is often easier for expats to finance the purchase from their home country. Pre 2008 many Spanish banks in Bilbao would lend to international investors although they have been reluctant to do again, so even now.
What is the average price of investment property in Bilbao?
Average property costs per square meter in Bilbao are €1,722 per square meter, representing a solid, year on year growth trajectory of 8%.
Map of Bilbao
Bilbao (, also US: /-ˈbeɪoʊ/, Spanish: [bilˈβao]; Basque: Bilbo[bilβo]) is a city in northern Spain, the largest city in the province of Biscay and in the Basque Country as a whole. It is also the largest city proper in northern Spain. Bilbao is the tenth largest city in Spain, with a population of 345,141 as of 2015. The Bilbao metropolitan area has 1,037,847 inhabitants, making it one of the most populous metropolitan areas in northern Spain; with a population of 875,552 the comarca of Greater Bilbao is the fifth-largest urban area in Spain. Bilbao is also the main urban area in what is defined as the Greater Basque region.
Bilbao is located in the north-central part of Spain, some 16 kilometres (10 mi) south of the Bay of Biscay, where the economic social development is located, where the estuary of Bilbao is formed. Its main urban core is surrounded by two small mountain ranges with an average elevation of 400 metres (1,300 ft). Its climate is shaped by the Bay of Biscay low-pressure systems and mild air, moderating summer temperatures by Iberian standards, with low sunshine and high rainfall. The annual temperature range is low for its latitude.
After its foundation in the early 14th century by Diego López V de Haro, head of the powerful Haro family, Bilbao was one of the commercial hubs of the Basque Country that enjoyed significant importance in the Crown of Castile. This was due to its thriving port activity based on the export of wool and iron commodities extracted from the Biscayan quarries to all over Europe. Throughout the nineteenth century and the beginning of the twentieth, Bilbao experienced heavy industrialisation, making it the center of the second-most industrialised region of Spain, behind Barcelona. At the same time an extraordinary population explosion prompted the annexation of several adjacent municipalities. Nowadays, Bilbao is a vigorous service city that is experiencing an ongoing social, economic, and aesthetic revitalisation process, started by the iconic Bilbao Guggenheim Museum, and continued by infrastructure investments, such as the airport terminal, the rapid transit system, the tram line, the Azkuna Zentroa, and the currently under development Abandoibarra and Zorrozaurre renewal projects.
Bilbao is also home to football team Athletic Club, a significant symbol for Basque nationalism due to its promotion of only Basque players and being one of the most successful clubs in Spanish football history.
On 19 May 2010, the city of Bilbao was recognised with the Lee Kuan Yew World City Prize, awarded by the city state of Singapore, in collaboration with the Swedish Nobel Academy. Considered the Nobel Prize for urbanism, it was handed out on 29 June 2010. On 7 January 2013, its mayor, Iñaki Azkuna, received the 2012 World Mayor Prize awarded every two years by the British foundation The City Mayors Foundation, in recognition of the urban transformation experienced by the Biscayan capital since the 1990s. On 8 November 2017, Bilbao was chosen the Best European City 2018 at The Urbanism Awards 2018, awarded by the international organisation The Academy of Urbanism.
Making Money on Investment Property in Bilbao
The best way to make money on Bilbao Property is via an expert international investment fund.
Your Financial Advisor or Accountant won’t bring you the opportunities because of course they won’t receive their greasy commissions.
Investment funds are not even allowed to advertise so you’ll never hear of them unless a friend recommends them.
You will need at least some experience with previous investments to be eligible and of course these funds are extremely picky about the investors they accept. They can afford to be. They don’t need your money, but they can put your money to work for you like never before.
Costs of buying a property in Bilbao
Fees for buying a property in Bilbao vary from area-to-area. There are no fixed fees for lawyers or estate agents. Buyers must pay the costs:
Property transfer tax in Bilbao: 6–10% (existing properties) / VAT (or IVA) at 10% (new properties in Bilbao)
Notary costs, title deed tax, and land registration fee in Bilbao: 1–2.5%
Legal fees for buying investment property in Bilbao: 1–2% (including VAT)
The seller usually pays the estate agent fees in Spain. Estate agents usually charge their fees as a percentage, typically around 3% of the final sale price.
Who is the Best Real Estate Agent in Spain?
Physis Realty estates is a multi-award winning Luxury Real Estate broker in Bilbao, with a 18 year track record the agency has been directly or indirectly responsible for the largest volume of transactions in Bilbao in the past two decades.
Types of investment property in Bilbao
It is important to understand the main types of Investment Property in Bilbao
The Most Successful Property Investment Fund 2020 : Click Image to Download Prospectus
Buy to hold in Bilbao
Long-term rental property in Bilbao is widely considered one of the best ways to diversify your property portfolio. So buying and owning property means much more than just investing in a single property, it can bring you a variety of benefits, such as access to a variety of investment opportunities and the benefits of long-term ownership.
While some investors in Bilbao may be confused or intimidated when they start, buying and owning property can be one of the best investments you can make if you do your due diligence before you start.
The rental income from investment property in Bilbao generates short-term income that can be used to pay off a mortgage or to invest money. The strategy of buying and holding property is one of the most common investment options.
The value of the Bilbao property will increase over time and the investor will benefit if he is willing to sell it later. The investor benefits from being bought in the expectation that the value of the property will rise over time.
Investors considering a Bilbao property purchase and holding strategy should do their best to calculate the potential income from renting out the property. The bottom line is that monthly income should exceed the cost of rent in the first year of ownership and annual rental income over the next five years.
If the investor plans to sell the Bilbao property later, possible profits should also be taken into account. Finally, any losses from taking out a mortgage or other type of property financing must be taken into account, as well as any gains from the sale.
Convert Bilbao property to Holiday Accommodation
For property investors in Bilbao, converting a home into a serviced apartment would mean higher rents than the normal rent increase. As a result, many people are buying investment property in Bilbao and then converting these homes into serviced apartments to maximize yield.
The types of property used for serviced accommodation in Bilbao are often the same as those you would use to buy to let. Where you have a guaranteed short-term rent, it’s not as rigid as renting out a property.
Lease Bilbao property to the Worlds Best Rehab
Remedy Wellbeing is a bespoke, luxury treatment center with a significant corporate footprint in Spain. This means they treat just one client at a time in luxury 6* accommodations. All properties used by Remedy Wellbeing are as unique as they are inspiring. If you own or represent some of the most exceptional, unique and luxurious accommodations in Spain, Remedy Wellbeing can be contacted via their dedicated property management company, Property Secured Investments.
Disadvantages of investing in Serviced Accommodation in Bilbao
Holiday accommodation is more of a business strategy than a property strategy, and the workload is far more intensive.
You’ll need to furnish your holiday rental accommodation in Bilbao
You’ll need to clean the rooms and change the sheets every time your guests leave.
Who does all the laundry?
Who does all the cleaning?
Who’s going to do all the work for you in Bilbao
How are the guests actually going to get in?
Are you going to have somebody to do a meet and greet?
Buying investment property in Bilbao to convert into serviced accommodation or holiday lets is not really considered an investment, because the amount of work involved make it a full time job.
Alexander Bentley leads Remedy Investments™ a private equity fund specializing in operational real estate. Remedy Investments™ has significant expertise in developing Luxury ApartHotels across Europe and the wider APAC region.
Alexander Bentley is the creator & pioneer behind Remedy Wellbeing Hotels & Retreats. Under his leadership as CEO, Remedy Wellbeing Hotels™ received the accolade of Overall Winner: International Wellness Hotel of the Year 2022 by International Rehabs.
Because of his incredible work, the individual luxury hotel retreats are the world’s first $1 million-plus exclusive wellness centers providing an escape for individuals and families requiring absolute discretion such as Celebrities, Sportspeople, Executives, Royalty, Entrepreneurs and those subject to intense media scrutiny.
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