SPAIN has scooped two prestigious prizes in the property investment category of Knight Frank’s Global Wealth Report 2016.
Madrid has been voted one of the top two cities in the world for property investment while Ibiza is in the top three for second-home purchases.
The well-respected report advises powerful investors how to pick the right ‘residential property inv
estment location in this higher-interest and lower-growth environment’.
The shortlists were influenced by ‘growing requirement for market performance led by economic and employment growth, new infrastructure, regeneration, quality of education, environment and lifestyle’.
Madrid came below Los Angeles but above Shanghai for the best city to invest in, after prime sales volumes were up 25% last year, ‘outperforming many neighbouring European cities’ according to the report.
Knight Frank predicts steady growth over this year, although supply constraints are still being felt in Salamanca, Jeronimos and Chamberi.
Meanwhile Ibiza was placed third, behind only the Gold Coast of Australia and France’s Cote D’Azur, as the best place in the world to invest in a second home.
The report highlights areas of San Jose, the marina and Ibiza Old Town as generating strong interest. ‘Year-round flights, good international schools and strong 4G internet connection have persuaded many young professionals in northern Europe to either relocate or commute long distance,’ the report stated.