Investment projects

Investments and business 

Construction business is the most effective business at Spanish Mediterranean Coast because of:

Favorable climate and nature, which promote hight demand for real estate. For example, provident English people migrate to Spain in winter time, so as not to pay for expensive public utilities at home. Everybody prefers to spend holidays at the sea side, and most Europeans of pension age select Spain as a place for constant habitation at all. As a result – stable demand for realty in Spain and especially high in resort zones of Mediterranean coast. Such zone is a coastal line, 1-3 km wide, not far from resort towns with advanced infrastructure and number of historical, cultural-entertaining and turistic objects. As an example – resort zone of Benidorm (Nothern Costa Blanca). Realty here has been and will always be in demand, regardless of changes on mortgage market or economical situation in Spain or other countries.

Favorable tax legislation

• 7% VAT (IVA) for living real estate, 16% for everything else.
• Annual real estate tax – 0.65% from cadastral cost (about 500-2000 euro/year).
• Notary expences and fees – 1.5-2% from cost of purchase.
• Mortgage – Euribor +1% (about 5-6% per year)

Favorable investment climate

• Land is in free turnover
• Easy procedure of taking out bulding licence (it takes about 1-3 months)
• Easy procedure of taking out credit or mortgage.

Investment projects

 
1. The largest profitability of investments give “urbanization” projects. Agricultural lands (average cost 10-50 euro/m2) are brought out from agricultural use with the subsequent providing with water-supply, electricity, sewage system and roads – lands receive urban status. Urban land is divided into plots and is sold for construction. Such projects take about 4-6 years. Profitability 100-500%.

2. High yield of investments is reached when lands for golf-fields are developed with dwelling construction at nearby territories. These investments cost hundreds million euros. But it is possible to take part in such projects, cooperating with the developer and obtaining right for share building. Construction of dwelling complexes and hotels on such lands give 80% profit and more. Time for realization is about 3-5 years.

3. Good profitability gives building up of urban lands. Cost of such lands starts from 100 euro/m2 and depends on location of the plot and building up norms in this zone. Plots with sea view cost 200 euro/m2 and more. Plots for construction of high-rise living buildings as well as hotels can cost 2000 euro/m2 and more. Construction period of small residential complexes is about 3-4 years. Profitability – 50% and more.

4. Satisfactory profitability gives acquisition of dwellings in complexes under construction with subsequent selling after completion of building process. Volume of investments is not big, and taking into account mortgage, starts from 100 000 – 200 000 euro. A lot of objects we offer, can be considered as such investements. Profitability reaches 30% and more. Time for realization – from 1 to 3 years.

Any product on the sea side finds its own buyer. But quality product located in a good place is sold more quickly, than a cheap one. It should be taken into account that to Costa Blanca come prosperous people, looking for quality dwellings.

If the budget is limited it is possible to look for a dwelling in inexpensive coastal regions, for example Torrevieja (Southern Costa Blanca). A lot of inexpensive living realty in central regions of Spain has appeared because of mortgage crisis. If the budget is quite small than you should look for a dwelling in other countries, such as Montenegro, Bulgaria or Turkey.