Cash-rich pensioners to offer boost for Spain property market

The obvious attractions of Spain are even more appealing to cash-rich British retirees.

New data has revealed just how much British wealth is tied up among the over 50s, prompting speculation that a growing number of British retirees are preparing to invest in Spanish property…

According to Silver Travel Advisor, a travel agency that specialises in holidays for people aged 50 and over, this group of Brits hold 80% of the UK’s private wealth, and more and more are looking to Iberia – Spain in particular – as a safe and attractive investment haven.

Spain is home to 14% of all Brits who live overseas, expat portal Brits Abroad has calculated, which means that the property market could well be in for a summer boost as soon-to-be retirees take stock of their nest egg and look at their options.

“Retirees these days have more funds behind them to explore the world with, but a considerable number look no further than Spain when it comes to deciding where they want to live during their golden years,” said Kyero Director Martin Dell.

“When you consider Spain’s advantages, it’s easy to see why,” he continued. “There’s the great weather, healthy cuisine, delicious wine, pristine golf courses and beautiful beaches, for a start. Spain also has a rich history, with plenty of cultural attractions and inspiring architecture for those who move there with discovery in mind. The cost of living is also a factor, as well as the cost of property. Those on a fixed income can get more for their money in Spain.”

And with the relative strength of the pound versus the euro, British pensioners are getting more bang for their buck. Figures from UK building society Nationwide show that the average home in Britain now costs £200,251, which equates to €255,000 – enough to snap up a substantial property in most parts of Spain.

While the EU Referendum issue remains a concern, many Brits are keeping one eye on the Spanish property market thanks to its affordability, both in terms of transaction costs and living costs – the Costa del Sol remains one of the cheapest holiday destinations in Europe, which means living there is also much easier on the wallet than the UK.

Indeed, many real estate professionals working on the Costa del Sol are bracing themselves for something of a July rush in enquiries for Spanish property once the EU debate – either in or out – has been put to rest.