Russian buyers move into number two spot on the Costa del Sol

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Russians have overtaken the Germans to become the second-biggest foreign group of house buyers on the Costa del Sol, behind the still-dominant British.

Russians now account for 9pc of the market on the Costa del Sol, ahead of the Germans on 7pc, but still a long way behind the British on 35pc, according to data (from the Association of Developers and Constructors of Málaga province) reported in the Spanish press.

“Russians are very elitist clients, and thanks to them, as well as the British and the Germans, you could say we are surviving, although the expression isn’t totally accurate,” said José Prado, President of the Association, in comments to the Spanish press.

Russians are also reported to be big buyers from the banks, who now own 80pc of the 10,000 newly built homes in the area (98pc of which is now for sale key-in-hand), and half of all properties currently on the market.

The Russians are also making their presence felt in other popular areas like the Costa Blanca, with sales to Russians in Alicante province up by 34pc in the first quarter of last year, according to data from local notaries.

If the Spanish Government goes ahead with plans to give residency permits to Russians who spend more than €160,000 on a house in Spain, the number of Russians investing in Spanish property could surge.

Meanwhile, Spanish demand on the Costa del Sol is now “very weak” says Prado. “Very little is sold and it has practically collapsed.” To make matters worse, the regional government of Andalucia hasn’t paid bills to the tune of 148 million Euros it owes to local builders.

SPI Member Comments

Thoughts on “Russian buyers move into number two spot on the Costa del Sol

  • Charles Hancock says:

    Well if Spain’s tourist industry needed a final nail in its coffin the news that the Russians are coming should be it.

    I have experienced Russian tourists in several parts of the world, and they are without exception the most obnoxious, boorish, rude people on earth. Like peasants who have won the lottery they have no concept of how to behave, and treat both the local people and their fellow tourists with contempt.

    I feel truly sorry for anyone unfortunate enough to own property in a development where the Russians are buying in.

    • Deborah Adams says:

      My experience of the russians in Spain involved witnessing a shootout in the marina of Sotogrande, where an innocent boat cleaner narrowly missed getting a bullet in the head at 11 am one morning. The scene was nothing short of an extract from a James Bond movie, as one russian proceeded to chase the other in a spirited boat chase. This incident was quickly covered up by both the local police and the press and if my scottish neighbour and I had not witnessed it with our own eyes, we would have thought we were going mad. The incident was 100% denied by every spaniard we spoke to.

  • Alan Tavender says:

    What right does Spain have to issue a Residence Permit to non-EU residents (Russians, Chinese, etc.) thereby granting them free access to the rest of Europe for the paltry sum of 160,000 Euros?? I understand that Cyprus is doing this, or contemplating doing so as well? Essentially anybody who can raise the cash gets to travel freely in all 27 countries regardless of who they are and where they come from. Is this what we signed up for, to sell nationality rights to get us out of a self-inflicted property crisis, and to hell with the rest of Europe’s security?

  • Anthony Redpath says:

    Well I need to sell, and if any Russians have a spare 270,000€ cash buyers most welcome and want to buy my Townhouse in Cancelada, Estpona, near Los Flamingos Golf, I am selling for what debt I have in Spain. No offers, need to clear what I owe then I can get the hell out of here and never to return.

    Cannot wait

  • Anthony Redpath says:

    Sorry but I forgot to add its opposite the Barcelo hotel just off the Cancelada roundabout on the left on the way up to Los Flamingos Golf, Townhouse No10 , my mobile is 677060622, quick sale please no time wasters

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