Experts of Alfa Inmobiliaria claim that property in some areas of Spain will start to increase in prices in the nearest future. This is due to three reasons: high-income from renting out cheap apartments, a significant decrease in prices in several regions, and easing of rules of lending, according to ee24.com citing noticia.ru.
There are cities in Spain where apartments can be purchased for €60,000 and rented out for €450 per month. Since in this case the yield is 9% per annum, such apartments attract a large number of investors and will go up in value. In particular, this is true for the northern suburb of Madrid, San Sebastian de los Reyes.
In those places where housing became cheaper by more than 65% during the crisis, i. e. almost in three times, it is time for prices to make a rebound. This situation can be observed in the town of Arganda del Rey to the south-east of Madrid.
Finally, another factor is the easing of bank lending as banks began to provide loans of up to €150 thousand at rates less than 3% per annum. To meet the conditions clients have to earn at least €1,100 per month, while in 2007 this figure was €4,845.