A recent article in the Spanish daily El Mundo analyses foreign demand for property in Spain.
Adaptation and translation of an article published by El MUNDO.
Following the trend of the last seven years, the average property price dropped 0.3 per cent in 2014, according to data from the Spanish Ministry of Development. Predictions for this year are for prices to remain the same, and for a degree of stability in the Spanish property market, a stability generally caused by the growing number of foreign property buyers. In general, the majority of these foreign investors are tourists who come to spend their holidays in Spain, and after discovering the country, invest in a second home.
According to the study carried out by TM Grupo Inmobiliario, based on standard buyers of properties on the Mediterranean coast, the main reasons for purchasing in Spain are the high standard of living, the sun and good air transport connections with home. As regards the nationality of buyers, the British remain in first place with 18.6 per cent of purchases made by foreigners, followed by the French (9.4 per cent), Germans (7 per cent), Belgians (7 per cent), Italians (6 per cent), Russians (5.8 per cent), Swedish (5.8 per cent), Chinese (4.1 per cent) and Norwegian (3.7 per cent).
As per the data compiled by TM Grupo Inmobiliario, the buyer profile depending on their origin is as follows:
BRITONS: men and women over 60, retired or about to retire. Married middle-class couple, with an annual income over €36,000, with children and grandchildren. Seeking a relaxed and laid-back environment. Main reason for purchase – climate, good air connections with their home country and the good health service found in Spain.
BELGIANS: men and women over 50 with a university education, company managers with an average annual salary over €60,000. Usually married with children and grandchildren, keen on outdoor activities and eating out. The privileged climate in Spain, proximity to the sea and good quality of services are what most appeals to them when it comes to investing in a second home.
RUSSIANS: usually men between 35 and 45, with a university education, married with children. Businessmen with an average annual salary of €80,000. Keen on the beach, shopping, trips and water sports. Their main reason for buying is the high standard of living in Spain and the residence permit is another incentive.
SCANDINAVIANS: married couples between 45 and 70, with a high standard of living with over €90,000 a year. Mostly retired people looking for a retreat to play golf, ride bikes or relax on the beach. Their main reasons for buying in Spain are the sun, healthy climate and good air connections with their home country.
The areas with most demand are on the Balearic and Canary Islands, Madrid, and the Mediterranean coastline, particularly attractive for residential and touristic reasons. The buyers, with high purchasing power compared to Spaniards, are making the most of the fall in property prices to buy second homes in Spain at affordable and attractive prices.
Spanish Property Insight adapts and translates selected articles from the local press for the benefit of non-Spanish speakers.
This translation is based on the following article (in Spanish): ¿Por qué compran vivienda los extranjeros en nuestro país?