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High-End Property Sales Hit Best Since 2007

30/09/2014 – Cinco Dias

Spain’s real estate market recovers. This is a fact supported by such arguments as creation of more jobs, fall in prices, shy return of lending and more property sales. Even construction pulled up with new housing developments.

When sales go up, usually the luxury market reflects it as one of the first. High-end properties are defined as those which cost more than €500.000. According to the data published by the General Council of Notaries, such an amount was crossed in 2.345 real estate transactions sealed in the first half of the year. It means a 10% rise in comparison with H1 2013.

Thus, it turns out that this year will see the best luxury home sales volume since 2007, when it post 2.659 properties changing hands. Experts reckon that the advance shall be associated with better tourist flow and general recovery of the Spanish economy, as now the country has become one of the most desired investment destinations in the world.

However, so-called Golden Visa, the permanent residency given to foreign buyers who purchase real estate properties for over €500.000, has had none or very little impact on the overall sales. The Ministry of Economy informed that during the first half of the ongoing year, only 260 visas have been issued, representing mere 11% of the high-end house sales. Still, if compared to their number (43) in the first quarter of 2014, the exponential growth went through the roof with 504% more.

Who Buys the Homes & Where?

The British lead in the ranking with 400 transactions and an average expenditure of €981.000. Second come the Russians, who buy less (321 properties) but pay more (€1.06 million on average). The German take the third place with 288 purchases and a mean of €1.14 million. The French, the Chinese and the Swedish close the list of top nations that sealed more than 100 deals.

When it comes to investment destinations, 99% of all sales are concentrated in only six Spanish regions: Andalusia, the Balearic Islands, the Canaries, Catalonia, Madrid and Valencia. The British poach homes in Andalusia, while Russians would rather pick dwellings in the Canaries, Valencia and Catalonia. Madrid is very popular among the French and the Chinese.

 

Original article: Cinco Días (by Raquel Díaz Guijarro)

Translation: AURA REE

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