Foreign Purchases of Spanish Homes Rises By 27.2%
Sharp Increase In Foreign Property Sales Indicates the Market Has Bottomed
The first quarter of the year has been an extremely active one for foreign purchasers of homes in Spain. Sales have risen by 27.2%, according to the latest statistics. This rise in demand has been partly attributed to an increase in the number of Chinese buyers, and is indicative of a new trend in the Spanish property market.
Buyers from abroad completed almost a fifth of all property transactions in this quarter. These statistics take into account purchases across Spain, although the majority of these foreign property purchases occurred in Madrid or coastal areas.
Property market analysts have suggested this extremely sharp increase can be seen as an indication that the Spanish property market has finally bottomed out, with prices set to rise significantly in coming years. For many years, the majority of foreign buyers of property in Spain have been British, and the latest figures show this has continued. British buyers complete 13.8 of foreign sales. The French, who buy 10.5% of properties sold to foreign buyers in Spain, and the Russians, who complete 8.4% of foreign property purchases, follow them.
The biggest change, other than the sheer number of sales, is the rise in interest from the Far East. Spanish property sales completed by Chinese buyers rose by a staggering 83.1%. This is undoubtedly down to the Spanish government’s “Golden Visa” scheme, an initiative that makes it easier for Chinese citizens to visit the country. Property prices are continuing to fall but, significantly, they are falling much more slowly than before. Overall, the price of property has dropped by 4% in the 12 months before May 2014, a huge difference from the 10.4% drop observed in the previous 12 months. This isn’t just significant when compared with the previous year. It is, in fact, the slowest drop in four years. Many high profile financial analysts are taking this as a clear sign that the market has finally bottomed out.
Accounting giants Price Waterhouse Cooper have released a report recommending Spanish property as a profitable investment vehicle, and the CEO of house builders Taylor Wimpey España has publicly expressed his confidence in the Spanish property market and outlined his company’s plans to push ahead with major development schemes.
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