Due to inflation in Europe, the European bank has increased the Euribor interest rate several times in recent years, with the aim of curbing inflation.
In Spain, almost all mortgages are linked to it, which means that the interest is calculated based on the current Euribor + a variable percentage. This percentage varies, but typically ranges between 2% and 3.5%. With the current Euribor of 3.8%, this is equivalent to an average annual interest rate of at least 6%.
For this reason, many analysts predicted a contraction of the real estate market in Spain as a result of high interest rates. The monthly mortgage has doubled for many households as interest rates are typically reviewed annually.
However, this contraction has not occurred, especially in coastal areas such as the Costa Blanca and the Costa Cálida, where the demand for houses and apartments for second homes continues to be very high.
The reason for this demand and consequent stability? The influence of buyers who come from different countries, whether looking for a second home, a place to retire or even an investment (you can read more about tips for investors in the following article).
We are not just talking about the European Union. There are also more and more Americans and Canadians who are discovering this beautiful part of Spain, motivated by the price difference with their respective countries, and by the quality of life that is breathed in the Mediterranean.
As a result, the Spanish Mediterranean coast is and will continue to be an attractive area for investors and lovers of sun and the good life.