Foreign buyers flooding back into the Spanish property market

property in Calella, Costa Brava

Calella, Costa Brava, Catalonia, where foreign buyers doubled last year

Foreign demand is the only dynamic segment of the Spanish housing market, and non-resident foreigners now make up a third of all buyers in the Valencian Community.

The number of non-resident foreigners who bought holiday property in Spain last year rose by 28.4pc to 38,312 buyers, according to figures from the General Council of Notaries, reported in the Spanish press.

Some buyers may have bought more than one property, so the actual number of properties sold to foreign non-residents last year is likely to have been even higher.

House purchases by foreign non-residents are now almost back to their pre-crisis levels of 41,787 in 2007, when the market was already showing signs of cooling.

Foreign buyers are being lured back to Spain by lower house prices and fewer town-planning and property related scandals that so blighted Spain’s reputation at the tail end of the boom.

The surge in foreign demand last year was not evenly spread, however.

Foreign purchases doubled in Catalonia and increased in the Valencian Region, but fell in Murcia and Andalusia, according to the Notaries. There were 204 foreign buyers in Madrid last year, an increase of 200pc on 2007.

Nowhere are foreign buyers more important than the Valencian Community, home to the Costa Blanca and Costa del Azahar. Said Vicente Dómine, head of the Housing and Public Works Department of the regional government “the purchase of homes in the Valencian Community by foreign citizens was 29pc of the total, representing a rise of 32pc on 2011, and income of 1.6 billion Euros,” in comments to the press. “The property market of the Valencian Community is recovering thanks to purchase of homes by foreign citizens,” he said.

The Russians are coming

Russians are now the second group of buyers behind the British, and ahead of the French, whilst the Norwegians and Belgians have overtaken the Germans, who have fallen into sixth place. Italian demand collapsed, reflecting economic problems at home, whilst the number of buyers from North Africa has ticked up, as the Arab Spring turns to winter.

Lower Spanish house prices

Foreign non-resident buyers spent an average of €230,000 on Spanish property last year, down 28pc from €320,000 at the end of 2007, and 42pc above the €160,000 mark the Government has floated as the price for getting a residency permit thrown in with your house-purchase.

Update

05/04/2013
I imagine the press reports cited in this article were wrong. They must have been talking about expats or foreign buyers (expats plus non-residents), not just non-residents. For more information see Foreign buyers are vital to the Spanish property market.

Comments

comments

3 thoughts on “Foreign buyers flooding back into the Spanish property market”

  1. david miller

    hi natalia

    I have a large detached villa for sale in dehesa de campoamor for 1.2 million euros,it has 8 bedrooms and is 80 mts from the beach,could you market it for me ??

    regards

    00441708220185
    00447973329190

  2. Alan Newbold

    Hi Natalia

    I have been looking for an agent actively engaged in the Russian real estate market. My home has much to offer Russian families wishing to settle permanently in Spain as we have an excellent international college just 5 mins from home and two excellent hospitals -one social security and 1 private – almost on thecdoorstep. Located In a stunningly beautiful orange valley with spectacular views of the mountains, we are just 30 mins away from Valencia City/airport and 15 minutes from the beautiful Valencian coast.

    Would you be interested in marketing my property? If you think you might be able to help, or need more information, please don’t hesitate to get in touch. Regards, Alan

  3. Stephen

    Hi Natalia,

    We are a UK based overseas property investment company and are currently offering Spanish investment property on a Intercontinental Golf resort and Spa in Murcia near the coast. It is an established resort already benefiting from good all year round occupancy levels and we are working directly with the banks that own this resort to offer clients up to 100% LTV mortgages.

    Please get in touch because I am very interested in tapping in to the Russian market and perhaps we can do something together.
    My email address is stephen@primepropertyone.com

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About Mark Stücklin

Mark Stücklin is a Barcelona-based property market analyst and consultant, and author of the 'Spanish Property Doctor' column in the Sunday Times (2005 - 2008). He can be reached by email on ms@spanishpropertyinsight.com.