14/04/2014 – Expansion
In 2013, foreign investment in property in Spain has marked the fourth consecutive year of growth and reached €6.453 million. This is the best score in 9 years and 16% greater than in 2012.
The increase stands in contrast with the fall in Spanish investment in the property abroad which represented €355 million, the smallest amount registered over the past 12 years. It fell by almost 90% in comparison to golden times when Spaniards spent more than €3.3 on property outside of the country, and by 41% in reference to 2012 values.
According to data provided by the Bank of Spain, since 2004 when the foreign investment showed €6.5 billion, those purchasers have never crossed €6 billion. Still, the disbursement is by 8.7% lower than 10 years before when it was greater than €7 billion.
In the face of the Spanish purchasing power loss and difficulties in obtaining a credit, the appetite of foreign investors has been growing over the past 4 years. Especially, if the price adjustment taken into acount, as it puts Spain in privileged position among other European countries.
Moreover, the Bank of Spain reveals that Spanish families intended 34% of their gross annual earnings for purchase of a home of 90 square meters, to pay in 5.8 year, on average. New mortgage signing fell by 27.8% and recorded 197.641 deeds.
In 2013, housing prices in Spain declined by an average of 7.8% that was much less compared to 2011 and 2012 with 11.2 % and 12.8% respectively, as the National Institute of Statistics or INE, informed.
However, housing sales decreased 2.2% in comparison with 2012 and showed 311.414 transactions.
In regard to property purchase in 2013, foreign investors represented 11.15% of all buyers, lead by the British (15.1 % of these), followed by the French (9.84%), Russians (8.58%) and Belgians (7.26 %).
Original article: Expansión (by Cora Serrano)
Translation: AURA REE