[SPI News]

The real estate market in Spain is receiving ever higher levels of investment from savers, foreigners and investors.

This surge in demand has been caused by the continuing drop in the country’s property prices as well as the sector being seen as a safe haven investment.

Its status as a safe haven investment has come about due to the crisis in Cyprus where those with bank deposits had their money put at risk.

Spain’s shaky economy and the general atmosphere of economic uncertainty has therefore pushed increasing numbers of people into the property market.

For this reason the positive sales data that the Instituto Nacional de Estadistica (INE) released for April, which showed a 10.8% annual increase in purchases, came as no surprise to many in touch with what’s happening at street level in Spain.

Miguel Ángel Sebastián a consultant at Alfa Inmobiliaria says that “there has been an increase in activity and you can sense that buyers have a different attitude, especially since May and so far in June. People are more positive, they are more willing to buy, the data from the INE didn’t surprise me.”

Many analysts, however, urge caution when interpreting these figures as the market is at such a low level that any changes can be blown out of proportion.

A flat in Madrid with a Sold Sign on its balcony

[katy]

Mark, have you been cloned 😆

[angie]

A man on a mission perhaps 😯

Another article from an agent although one has to agree with it’s last para ‘many analysts, however, urge caution when interpreting these figures as the market is at such a low level that any changes can be blown out of proportion’ investors take heed 😉

[Anonymous]

Statler & Waldorf from the Muppet Show. That’s who you two remind me of 😆

I have brought in some outside help to do the news.

[DBMarcos99]

Interesting article on the rise of the foreign investor wanting residence in Spain, particularly Russians and South Americans. Will those small numbers at the top really influence the rest of the market?

http://cincodias.com/cincodias/2013/06/12/economia/1371050593_717680.html

[Anonymous]

@DBMarcos99 wrote:

Interesting article on the rise of the foreign investor wanting residence in Spain, particularly Russians and South Americans. Will those small numbers at the top really influence the rest of the market?

http://cincodias.com/cincodias/2013/06/12/economia/1371050593_717680.html

Not a chance. It’s a futile gesture that’ll do nothing to help the Spanish property market in general.

One thing it will do is distort prices in the €400k to €499k bracket. All the prices of that bracket will reset to €500k or more because people will be paying for the residency not just the property. That is if the Russians and Chinese really value Spanish residency with strings attached. I’m told they will…..

Anyway, we still have to see what the final amount is when the law is passed. It’s still in doubt.

[angie]

@ Kermit, even I had a chuckle at that, would have been funny if you’d got the gender right 😆 , a bit off topic though 😆

[katy]

Why would Russians want to take up residency in Spain when Russia has a generous tax regime? There are lots of places in the world where you can buy residency on more favourable terms.

[Anonymous]

@katy wrote:

Why would Russians want to take up residency in Spain when Russia has a generous tax regime? There are lots of places in the world where you can buy residency on more favourable terms.

I don’t doubt it, but can you give any specific examples?

[katy]

http://www.theaddressmagazine.com/2012/06/buy-property-get-residency/

We actually looked at St. Kitts. for me it was the smallness of the Island and health facilities. However, for the super rich who can afford to leave on a helicopter it wouldn’t be a problem.

Then there is Gibraltar, Jersey, Belize. probably more.

[angie]

We considered Brazil,and Turks and Caicos some years ago. I believe Brazil is currently R$150k investment in real estate or a business, in the Ts & Cs $500k in RE or business, used to be a lot less when we looked, and annual fee of $1k to renew. Work permits are cheap a few $1000k depending on job, then no huge outlay. 😉

[Anonymous]

Russia is a “tax haven” and that’s not the reason why any rich russian would look at moving abroad.

[Anonymous]

My last information is that in Italy non residents do not get charged Inheritence Tax and that is a great help. I wonder if the Chinks and Ruskies know the full extent of Haciendas greed !

[Author]

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