Moroccans and Romanians Among the Biggest Foreign Buyers of Homes in Spain

20 August 2019

The profile of foreign home buyers in Spain is changing as traditional European countries are now accounting for a diminishing percentage, according to a report by the Spanish College of Registrars.

Between January and March, foreign buyers acquired more than 16,000 homes in Spain, approximately 12% of all operations. The British accounted for 13.79% of the total, down from a high of from 37% in 2008. The French also fell from 10% in 2014 to 7.5% in the first quarter of this year. Germans fell to 6.89%, and the Italians dropped to 4.91% from 5.77% in 2017.

Moroccans are now the fourth most active buyers (6.14%), while Romanians are the fifth (6.12%), followed by the Belgians (5.41%), Italians (4.91%) and the Chinese (4.49%).

Original Story: Idealista – Ana P. Alarcos

Adaptation/Translation: Richard D. K. Turner

International Buyers Now Account for Just 20% of Luxury Home Sales in Barcelona

20 August 2019

Luxury homes in Barcelona are attracting fewer foreign buyers than just a few years ago. At that time, they accounted for 50% of all transactions, while now that has fallen to one in five.

Several factors have combined to lead to the decline. According to Barnes, a real estate agency, Spanish buyers have become more prevalent, while foreign buyers have increasingly turned their attention to other places like the Balearic Islands, Greece, and Portugal. Geopolitical factors such as the independence movement in Catalonia have also taken a toll.

Original Story: Idealista

Adaptation/Translation: Richard D. K. Turner

Qatar’s Emir Acquires Property in Granada

28 July 2019 – Richard D. K. Turner

The emir of Qatar, Tamim bin Hamad al Zani, has just acquired an at least 6,000-m2 carmen, a Granada-style home, overlooking the Alhambra and Sierra Nevada. The emir paid 15.3 million euros for the property, acquiring the house in a personal capacity. The estate has two gardens, several buildings and excellent views.

The carmen belonged to the late businessman Rafael Pérez-Pire, founder of the Puleva dairy company, who acquired the property in 1943. The word carmen comes from the Aramaic kermel, meaning mountain with vineyards and water.

Original Story: Periodista Digital – Manuel Trujillo

New Construction Permits Soar on Malagan Coast

18 April  2019 – La Opinión de Málaga

New construction permits soared by 655% on Spain’s Costa del Sol over the past four years, reaching a high of 9,195 new construction permits in 2018, according to data compiled by Sonneil, a real estate brokerage, using figures from the Ministry of Development. To the north, the issuance of new construction permits rose by 31% y-o-y in Alicante to 6,331, an increase of 166% compared to 2014.

Acquisitions by international buyers boosted growth in both coastal cities. In 2018, Alicante and Tenerife marked a sales record for international clients with a percentage of home purchases of 41% and 38% respectively, followed by the Balearic Islands with 31% and Malaga with 28%. Foreigners buyers accounted for 28% of the total in Málaga and 41% in Alicante. 80% of the acquisitions by foreign buyers were for second-hand housing.

Original Story: La Opinión de Málaga

Translation/Summary: Richard D. Turner

E&V: The Costa del Sol Enjoys a New RE Boom

12 March 2019 – Europa Press

According to a report about the real estate market for 2018-2019 compiled by Engel & Völkers (E&V), demand is growing along the Costa del Sol from domestic and international investors alike.

The improvement in the economy, better financing conditions, high rental yields and the reactivation of new construction projects all confirm that there is a boom underway on the Andalucían coast once again.

The real estate agency forecasts a moderate increase in prices and transaction volumes of around 7%-10% during 2019. Málaga is the driving force, thanks to its cultural offering and robust infrastructure, but new build projects have resumed all along the coast in recent years.

In this climate, in 2018, 60% of operations were closed by foreigners looking for second homes, with average prices of €3,000/m2 in Málaga capital and maximum prices of €8,000/m2 in the city centre.

Marbella has also re-emerged as an investment destination after years of paralysis, where overseas buyers account for 80% of all purchases. There, clients seek modern villas equipped with the latest technology, which have views of the sea or are located close to a golf course.

Original story: Europa Press  

Translation/Summary: Carmel Drake

Taylor Wimpey España will Launch 6 New Developments in H1 2019

7 December 2018 – Eje Prime

Taylor Wimpey is going to continue betting on second homes in Spain. The British property developer is going to launch six new developments in the country during the first half of 2019. The projects will contain 330 homes in total and will be located in three main areas: the Balearic Islands, the Costa del Sol and the Costa Blanca.

The real estate company, which celebrates its 60th anniversary this year, will start work on the three projects in the Balearic Islands, two on the Costa del Sol and a sixth on the Costa Blanca next year. “As always, our priority is to look for locations on the beachfront with access to golf facilities”, explained the company in a statement.

Specialising in international buyers, Taylor Wimpey España has received reservations from 37 different nationalities this year. Of all the countries, Germany stands out, where 27% of its clients have come from, and the United Kingdom, which has accounted for 12% of all the reservations made.

With more than 6,000 homes constructed over its six-decade history, the property developer is listed on the London Stock Exchange and undertakes its developments using own funds, a fact that “influences” buyers, according to Marc Pritchard, the company’s sales director. “For buyers, it is a guarantee of the development’s success since the investment is not affected by possible fluctuations in the market”, said the executive.

In 2018, Taylor Wimpey arrived in Sotogrande as an extension of its presence on the Costa del Sol, as revealed by Eje Prime. In the four months since its project Pier Sotogrande has been on the market, the property developer has managed to obtained reservations for 30% of the 56 homes that will make up the promotion.

Original story: Eje Prime

Translation: Carmel Drake

Venezuelans Lead Ranking of Most Active Foreign Residential Investors in Madrid

5 June 2018 – La Vanguardia

Venezuelan immigrants lead the ranking of home acquisitions by foreigners in the Spanish capital, according to data from Redpiso’s Research Service.

This data represents an increase of 10% with respect to the previous year and places investments by Venezuelan immigrants above those made by the Russians and Chinese, who were, until now, the nationalities that purchased the most homes.

The typical investor profile are people with a medium-high purchasing power, educated and employed, who have lived in the country for no more than three years.

Above all, they are buying homes in the areas of Chamartín, Hortaleza, Salamanca and Retiro.

The average cost per home amounts to around €565,000 and purchases are mainly happening in the second-hand housing market, “given that the supply of new build properties is very low and even more so in these areas”, said Redpiso.

In terms of the rental market, the average number of contracts increased by 35%, with the average spend on rent by Venezuelans amounting to €1,700 per month with three-year renewable contracts.

To explain the factors driving this growth, sources at Redpiso allude “to the mass arrival of Venezuelan immigrants who are coming to Spain due to the controversial socio-political situation in their country, as well as the limited and increasingly more expensive supply of rental homes in Madrid”.

Original story: La Vanguardia 

Translation: Carmel Drake

Taylor Wimpey Enters Sotogrande & Strengthens its Presence in Ibiza

28 May 2018 – Eje Prime

Taylor Wimpey España is entering one of the most luxurious urbanisations in Spain. The Spanish subsidiary of the British real estate group is backing Sotogrande, synonymous with luxury housing, in its business plan for 2018, which also includes the launch of around twenty developments in the Balearic Islands, Costa del Sol and Costa Blanca, the three markets where it already has a presence and “in which we will continue working”, says Reyes Coll, Marketing Director at Taylor Wimpey in Spain, speaking to Eje Prime.

So far this year, the real estate company has launched eight new projects. Four of them are located on the Costa del Sol, three in Mallorca and the eighth is in Alicante. The aim of the company is to “launch between five and ten more promotions before the end of the year”, says Coll.

Taylor Wimpey’s main business in Spain is second homes for foreigners, which account for more than 90% of the company’s housing reservations.

In the Balearic Islands, where land is scarce and prices are growing rapidly, the company is finalising the requirements necessary to bring three new projects onto the market: Cala Lliteras, Cala Vinyes and Cala Gració. The latter is located in Ibiza, an island on which the real estate only has 22 homes to date, in Can Misses. The other developments in the Balearic region are located in Mallorca (…).

Almost twenty developments on the market

Without taking into account the aforementioned projects and those in the pipeline, the real estate company already has 19 developments up for sale in the country. Mallorca and the Costa del Sol are the two regions where most of its developments are located, with seven residential projects up for sale, whilst the company has five urbanisations on the market on the Costa Blanca.

Taylor Wimpey España’s business depends on foreigners interested in buying a second home in the country. This profile of buyer is growing again in line with the recovery of the economy. Indeed, the company recorded a 10% increase in its portfolio of international clients. “German, Scandinavian, British, Russian and Belgian buyers all stood out”, explains Coll. The General Council of Notaries explained recently in a report that those nationalities account for the fact that 20% of the homes purchased in Spain are acquired by foreigners. In 2017 alone, the company completed operations involving new homes with buyers from 32 different countries.

In the case of buyers from the United Kingdom, players in the Spanish residential market were fearful of the consequences that Brexit might have on sales. Nevertheless, sources at Taylor Wimpey explain that reservations from Brits have increased over the last nine months.

40% growth in post-crisis reserves

The end of the real estate crisis has also arrived for Taylor Wimpey España, whose reservations grew by 40% in 2015 and have continued to increase ever since (…).

According to its roadmap, the company is not planning any changes to the line of business that it has operated for sixty years. The property developer will continue to specialise in the construction of apartments and terraced homes in the most touristy areas of the country and will finance them solely using own funds.

Original story: Eje Prime (by J. Izquierdo)

Translation: Carmel Drake

Registrars: House Prices Rose by 7.6% in 2017

19 February 2018 – Eje Prime

All of the indicators are continuing to ratify the good health of the housing sector in Spain. In this vein, house prices recorded an increase of 7.6% in 2017, whereby continuing the rise observed in recent quarters. Moreover, they registered a quarterly increase of 19.8% between October and December, according to the Real Estate Statistics Register published by the College of Registrars of Spain.

Between October and December, 111,921 house sales were recorded in the property registers, down by 6.1% compared to the previous quarter, which made Q4 the quarter with the fewest house sales in 2017. Nevertheless, all four quarters of the year saw the number of house sales exceed 110,000 operations, something that has not happened since 2008.

The distribution of house sales by type was stable in terms of its structure, with 82.73% of total sales relating to second-hand homes and 17.27% to new build properties. During the last quarter of 2017, 19,325 new build homes were sold, representing a decrease of 7.47% with respect to the previous quarter, and 92,596 second-hand homes were sold, down by 5.77% compared to the third quarter.

Meanwhile, sales volumes increased by 19.8%, in total, compared with the last quarter of 2016. Over the last twelve months, 464,233 operations were registered, the highest annual figure recorded since 2008, up by 15% YoY.

All of the autonomous regions saw increases in the number of house sales in 2017 with respect to 2016. In the lead, Castilla-La Mancha saw a 23.1% rise, Asturias, 20.7%, Madrid, 19.1%, and the Community of Valencia, 17.8%. Moreover, the rates of growth reached double-digits in thirteen of the autonomous regions.

In terms of homes purchased by foreigners, the fourth quarter of the year closed with the highest percentage of purchases by foreigners in the last eight quarters, accounting for 13.6% of all house purchases. In absolute terms, they represented around 15,300 operations, slightly below the almost 15,600 transactions recorded in the previous quarter.

In addition, in cumulative YoY terms, the number of purchases by foreigners accounted for 13.1% of the total, continuing at record highs, with annual figures of almost 61,000 house purchases, compared to 59,200 in the previous quarter.

By nationality, the Brits retained their usual position as the most active buyers, accounting for 15.6% of the total purchases by foreigners, followed by the French (8.2%), Germans (7.8%), Swedes (7.1%), Belgians (6.8%), Italians (5.2%) and Romanians (5.1%).

Original story: Eje Prime

Translation: Carmel Drake


Servihabitat: 9 out of 10 Non-Resident Buyers Prefer the Beach

18 December 2017 – Eje Prime

17% of the homes purchased in Spain today have a foreign accent. During the first half of 2017, 83,675 homes were acquired by foreign buyers, which represents an increase of 10% with respect to the same period last year. Nevertheless, that increase weakened slightly if we look at the previous quarter, according to the Servihabitat Trends report published by the national servicer.

The reason for this annual increase is found in the climate: 83.7% of non-resident buyers in Spain during the first six months of this year focused their attention on just seven provinces, all of which offer sun and sand. Málaga leads the ranking, exceeding even Alicante according to the latest figures. According to data from the Ministry of Development, 30% of all house purchases by foreigners were recorded in Málaga, compared to 23% in Alicante (…).

The data is clear. Almost nine out of every ten foreign buyers in the Spanish market values the quality of life offered by the Mediterranean climate. Another factor to take into account is the reason for the purchase. In this sense, the Government reports that 95.8% of new foreign house buyers in Spain are resident in the country, which accounts for 80,191 properties in total (…). ,

Besides Málaga and Alicante, the other most sought-after provinces by these investors are: Almería (9.6%), the Balearic Islands (9.2%), Las Palmas (5.2%), Tenerife (4.7%) and Murcia (3.5%). Beyond these coastal areas, the remaining 12.7% is spread over the rest of the country, with large cities such as Madrid and Barcelona accounting for a large share.

Influence in the regional market  

As well as the growing number of international investors, their influence in the regional markets where they are interested in buying homes is noteworthy. In regions such as Alicante and Tenerife, overseas investors account for almost half of all residential property purchases in the regions. Similarly, in the Balearic Islands, Málaga, Las Palmas and Girona, the figure exceeds 30%.

In Cataluña and the Community of Madrid, house purchases by foreigners account for 15.9% and 8.8% of the total number of operations, respectively.

At the other end of the spectrum, the regions where fewest foreign investors are active are Extremadura (2.2%), followed by Galicia (2.5%) and País Vasco (3.3%).

Brits lead the investor ranking

In terms of the country of origin of overseas investors in Spain, British buyers continue to constitute the largest community of house buyers in the country, although their market share decreased during the third quarter of this year, from 19% to 15.13%, according to data from the College of Registrars.

The collateral damage from Brexit may have led to that decrease, although the loss in the purchasing power of UK households will have also played its part, due to the depreciation of the pound against the euro, according to the servicer’s report.

After Brits in the ranking of foreign investors in Spain, come the French and Germans, although neither group manages to account for 10% of the total market. The Swedes, Belgians, Italians and Romanians, all with a percentage market share of around 5%, buy similar numbers of homes in the Spanish residential market, which is speaking more languages every day.

Original story: Eje Prime (by Jabier Izquierdo)

Translation: Carmel Drake