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Engel & Völkers Licence Partner Spain > Blog > 7 reasons to buy a property in Zaragoza

7 reasons to buy a property in Zaragoza

In recent months, Zaragoza has placed itself as a benchmark in the recovery of Spain's property sector. Besides Barcelona, Madrid, and coastal towns, the capital of the Autonomous Community of Aragon offers some excellent advantages when buying a property. In this article, we are going to give you seven top reasons why you should not miss the opportunity offered by the property market in this place.


1. The price of resale homes rises rapidly

The last time house prices fell was back in 2015. Compared to the previous twelve months, they fell by 1.6%. From there, growth has become extremely steep in the capital of Aragon. In fact, during the year 2017, prices rose by around 5%, a figure that is expected to be repeated in 2018. Specifically, the forecasts suggest that the increase in property prices will be 5.6%. Therefore, any financial expert would advise you to take advantage of the upward market situation and buy a home now.


2. The price of land is relatively cheap

At this moment in time, the price per square metre for land in Aragón is €1,255. If the prospects are fulfilled, this figure will reach €1,325 by the end of the year. However, it is a considerably low figure compared to the other large Spanish cities. This means that the growth margin is greater and, therefore, the future benefits that can be gained from such investment will be much higher.




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3. Rental prices are skyrocketing

In Zaragoza, the same situation is being experienced just like the other large Spanish cities. At the moment, demand for rental flats far exceeds the existing offer. This obviously means there is a strong price increase in flats for rent. Specifically, only during the twelve months of 2017, the average monthly rent price for properties within the city grew by 7%. The conclusion is that it is becoming easier to make quick profits by buying a property and renting it out. 


4. Attractive mortgage rates

Credit has started flowing again and, as a result, it is possible to find attractive mortgages that facilitate the purchase of homes. In fact, taking into account the current interest rate situation, the difference between the monthly payment of a mortgage and the monthly rent is very high. For example, an 80 square metre flat in the neighbourhood of San Jose that for example costs €125,000 can be obtained by paying a monthly mortgage amount of €400 for 30 years and rent it out for €650. If we talk about the historic centre, it is possible to get up to €900 in rent.


5. The options to buy are very varied

Just check the 'stock' of any estate agency to see just how many homes are currently for sale. This is mainly due to the fact that those who purchased during the most difficult crisis times are now taking advantage to sell their property and obtain high capital gains. Banks are also trying to take advantage of those repossessed properties that they took from families who could no longer cope with their mortgages during the economic crisis.



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6. Tax benefits for first time buyers

In case you want to buy your first home as your main residence rather than for investment purposes, you must know that right now the Autonomous Community of Aragon offers certain tax benefits, especially to young people. In fact, they can enjoy reductions in the payment of Transfer Tax on resale homes and AJD (mortgage tax).


7. No more suffering from fluctuations in rental prices

When the property rental market is on the up, it can result in property owners making good profits through renting their homes. However, in case of fluctuations, landlords can make losses on their rented property. Due to the increase in rental prices that have recently been experienced in the market, landlords have taken the opportunity to raise rent prices annually based on such situation so tenants end up paying more every month. However, if you buy a property rather than rent one, the mortgage amount that will be paid monthly will be much more stable and not subject to fluctuations. What's more, if you get a fixed-rate mortgage, you will know the exact amount that you will need to pay from the first year.


To sum up, if you want to buy a property in Aragon to either use it as a first home or to rent it out, now is the right time to do it. This is due to the positive forecasts regarding the increase in property prices.



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Property on offer in Spain

In recent years, the Spanish property market has become a sector particularly valued by international investors, and it's no surprise. Between 2009 and 2014, property prices in Spain underwent notable changes, and as a result properties are currently being sold at very competitive prices. This situation applies to houses both for sale and to let, as well as to more luxurious properties, making Spain a practically unique case in Europe. The best investment possibilities can be found in Spain's high-end properties.

The high-end sector is the most interesting to the international investor. Many people the world over consider property in Spain, especially in the larger cities, to be some of the best patrimonial assets in Europe (a good example would be a luxury attic in Madrid or Barcelona). And as for the exclusively residential market, those who wish to have a second home in Spain, or buy a main house can also benefit from this situation. Logically, all of these benefits also reach the proprietors who wish to sell their houses.

Living and working in Spain

The quality of life enjoyed in Spain is the result of a unique combination of climatic, geographic, and of course, human factors. Living in Spain is an option that is contemplated by more foreigners every day, and buying a house is the first step towards that. Acclimatisation tends to be fast, and those who move in with the objective of developing business ventures can also count on easier administration when buying a house. Spain's high quality property market paves the way forward.

The type of property which one moves into in Spain will obviously depend on the newcomer's aspirations. Those who head to Spain, whether to live or to work, can enjoy the wonderful surroundings, either in an apartment with a view (of the beach, mountains or the city) or in a house right on the coast. For more information, it can be very useful to seek the advice of an estate agent in Spain, who will analyse the most interesting offers based on the prospective buyer's criteria.

Selling your house in Spain

Selling your house is another option for foreigners who live in Spain. Whether you are coming to the end of your stay in Spain or you just want to get rid of one asset in particular, the services of a reliable and trustworthy Spanish estate agent are essential. These professionals will examine the qualities of the villas in Spain that they want to commercialise, reaching the most advantageous sales agreements possible and getting the luxury properties in question on the market. Little wonder: if anything indicates the current context of the market it's that the role of the agent is basically to close a good sales agreement.

How to arrive in and travel through Spain

Alongside the properties that Spain has available, the country also offers areas of great patrimonial and natural interest. It's worth highlighting the excellent connections by land, sea and air to all the European capitals such as London, Paris, Berlin, Rome, Brussels, and Geneva, and many other European cities are less than a three-hour journey from the main Spanish airports. Those who travel to Spain have airports at their disposal not only in the main cities but also in the majority of the provinces. Another alternative to get around the country is via the complete train network that, on a smaller scale, consists of commuter trains to the inland regions, creating easy access to almost any town and property in Spain.