Foreign investors are kick-starting the Spanish property market with about one in six homes being snapped up by non-Spaniards.
Article written by Girasol Homes
The Alicante region, which includes the ever-popular Costa Blanca resorts, is the most popular destination by far followed by Malaga – home to the Costa del Sol – Barcelona, Tenerife and Girona. From April to June this year, foreign residents bought 3,543 homes in Alicante. This was twice as many as in Malaga, the next popular destination, with 1,771 properties sold to foreigners, according to Spanish government figures.
House sales rose in five regions – Valencia (3% rise), Canary Islands (16.2%), Catalonia (12.1%), Murcia (9.5%) and Andalucia (0.1%). Throughout Spain 13,632 properties (16.9%) were bought by non-Spaniards, which is the highest proportion since 2006. Transactions by foreigners have been increasing for the past two years with coastal areas still being the favourite destinations. They also tend to be bigger spenders than residents and are interested in properties of above average value.
English buyers are still the main investors and buyers and make up 16.6% of the foreign total, although the Russian, Dutch, Belgian and German markets are increasing. There has been a clear increase in buyers from Russia, who tend to be high-spending visitors and now account for 13% of sales to Europeans. Secondhand property made up for 82.6% of sales while new-builds accounted for 17.4%.
Last year, foreign investors accounted for 40% or €1.6 billion, of the Spanish real estate turnover. This includes foreigners who reside in Spain and those who are looking for a second home or investment.
Nigel Salmon, managing director of the professional Spanish property finding company Girasol Homes, said: “We have been very busy showing clients the great range of properties for sale in Spain, especially in the popular Alicante, Murcia and Malaga regions. The Costa Blanca, Costa Calida and Costa del Sol beach resorts are still favourite places for a holiday home or for people looking for a permanent move. We have also added to our team with a new team in the popular Canary Islands to cope with demand.
“The sharp decline in property prices is a major attraction and there are some lovely bargains to be had, even in the most popular resorts. We are also finding a lot more interest in newly-built villas, townhouses and apartments for sale in Spain. There are some amazing modern-style homes on golf and beach complexes which really have the Wow factor. Add to this the special offers for our own customers and we really are seeing the market moving in the right direction.”