“Foreign buyers are being lured back to Spain by lower house prices and fewer town-planning and property related scandals that gave a big slap to Spain’s reputation at the tail-end of the boom in 2008. “The surge in foreign demand last year was not evenly spread, however.”
There was a significant increase in the number of overseas nationals buying property in Spain last year, thanks mainly to a sharp decline in property values.
The number of non-resident foreign buyers who purchased a property in Spain last year rose by 28.4% to 38,312 buyers, according to figures from the General Council of Notaries.
Residential property purchases by foreign non-residents are now almost back to their pre-crisis levels of 41,787 in 2007, although the Spanish property market was already showing signs of slowing at that stage.
Foreign purchases doubled in Costa Blanca and increased in the Catalunia Region, but fell in Murcia and Andalusia, according to the Notaries. There were just 204 foreign buyers in Madrid last year – however this is an increase of 200% on 2007.
According to Vicente Dómine, head of the Housing and Public Works Department of the regional government, almost a third of all homes in the Valencian Community were acquired by foreigners in 2012, marking a solid move forward for the real estate industry – this should carve a positive flow to continue in 2013 and beyond.
Although the Dutch and Scandinavians remain the largest group of foreign property buyers in Spain, there has been a sharp rise in the volume of Russians purchasing property in Spain – they are now the second largest group of foreign buyers.
Average property sales in the Costa Blanca region last year worked out at €230,000 (approx £200,000) – this was down around 25% from €320,000 in 2007 – This said with all the news and soon to be realeased information from the Spanish Government allowing foreign investors to gain residency for property purcashes over 160,000€ these figures give another positive move forward.