Home Purchase by Foreigners Shoots 31.5% Up by June 2013

27/01/2014 – Cinco Días

Will Spain become the European California? The question has been asked many times in the fever of the real estate boom as an attempt to explain why each year was marked by more than 600.000 started houses. The numbers exceeded the scores of France, Germany and the United Kingdom altogether. The developers claimed that Spain was popular due to its attractiveness in terms of climate, food, infrastructure and public services, among others, and especially loved by the retired from the northern and the central Europe.

Now, once the bailout threat overcome, the perception of the country by the foreigners returned to be positive, mainly because of the cut in property prices (ranging from 40% to 50% in regard to their maximum levels). Spain becomes their favourite destination for buying the second house again.

11.000 Visas per Day

In the first half of the last year,  24.552 houses were sold to foreigners, according to the data provided by the General Council of Notaries. The volume points at an increase of 13.6% in regard to the same period last year, (…). More than a half of the transactions (53.8%) have been conducted on request of a non-resident (total of 13.233 adquisitions, 31,5% more in annual terms). They buy more flats than the foreigners residing in Spain. The same happened in 2008 when the crisis loomed. (…).

In the non-resident nationality ranking, all the countries disposing of noteworthy data show annual growth, with an exception for the Italy that hardly reached 292 transactions by June 2013, 7,8% less than in the same month in 2012.

In absolute terms, the British continue to lead in the house purchase in Spain, with total of 2.076 transactions from January to June last year, 15% more than 12 months before. They are followed by the French with 1.641 properties and an increase of 43%. The Russians follow thick on their heels, registering during the first six months 1.338 transactions, 13% more than in the same period in 2012. Moreover, their activity is predicted to grow in intensity. (…). José Manuel García-Margallo from the Ministry of Foreign Affairs revealed that the Spanish consulate in Russia issues 11.000 visas each day. (…) Behind the Russians, there are the Belgians, the Swedish and the Norwegians.

Original article: Cinco Días (Raquel Díaz Guijarro)

Translation: AURA REE