House Sales To Foreigners Soar By 30% In Málaga

13 March 2015 – Diario Sur

In 2014, in the province of Málaga, 9,140 homes were sold to citizens from other countries, a figure that comes close to levels last seen before the crisis. This means that foreign buyers accounted for 38% of all real estate transactions in the province last year.

Foreign demand continues to be high in the Malaga property market, which recorded an increase of 28% in house sales last year, according to data published today by the Ministry of Development. Of the 23,929 homes sold in the province in 2014, 9,190 were to foreign buyers, which represents a percentage of 38%.

And the volume of house sales to foreigners has almost doubled in two years: from 5,140 in 2012 to more than 9,000 last year, representing a growth rate of almost 80%. Transactions involving Spanish buyers also increased in 2014, specifically, by 29%. However, according to the Chairman of the Association for Builders and Developers, José Prados, demand for primary residences, i.e. demand from buyers from Malaga itself, continues to be “very static”.

In terms of the foreign nationalities that are buying homes in Malaga, the ranking is led by the British, Scandinavians, French, Benelux, Germans and Russians, in that order, according to Prados. “Demand from Russian buyers, which peaked to compete with that shown by British buyers at one point, has cooled off significantly as a result of the internal problems facing the country”, he adds.

The vast majority of the foreigners that buy homes in Málaga (8,010 out of 9,190) are resident in Spain. The number of non-resident buyers has not increased significantly, despite the incentives introduced by the Government to grant residence permits.

Original story: Diario Sur (by Nuria Triguero)

Translation: Carmel Drake

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