Some encouraging news about the Spanish property market – foreign investment was up by 17 per cent in 2012 to its highest level since 2004, according to the latest figures from the Bank of Spain.
Article written by Buy Association
The figures show that foreign nationals spent €5.54 billion on Spanish property last year, compared with €4.7 billion in 2011, and €3.6 billion in 2009. In the final quarter of last year alone, overseas investors spent €1.8 billion, up by 56 per cent compared with 2011, and by 92 per cent compared with 2010, showing just how much confidence seemed to increase as the year progressed.
Spanish property expert Mark Stucklin of Spanish Property Insight says that this is still some way off the high of €7 billion spent by foreign investors in 2003, however. “Foreign demand has been growing in response to lower Spanish property prices and political unrest in competitor destinations in North Africa, making Spain look like a safe bet,” he says.
The latest figures released by the GCN (General Council of Notaries) also confirm that the buyers are back in Spain. Its data shows a substantial 28.4 per cent increase in the number of foreign and non-resident buyers of Spanish property in 2012, with a total of 38,312 foreign investors purchasing real estate assets, which is close the pre-recession levels recorded in 2007. The British are the biggest buying group, followed by the Russians.
Analysis of figures from the Department of Housing by Spanish Property Insight shows that foreigners now make up 12 per cent of the Spanish property market, and could be ‘crucial’ to any recovery.
A combination of falling property prices (some prices are down by 50 per cent since the peak) and efforts being made by regional real estate agents and tourism boards to improve Spain’s image among investors has contributed to the increase in investment, but the strength of the pound against the euro last year also helped in terms of improving affordability.
Right now, however, property in Spain can be acquired on better terms than have been seen for quite some time. If investors do their homework, seek proper advice, and are willing to be in it for the long term, it’s still possible to buy with confidence.
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