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Golden Visa Beginning To Attract Non-EU Buyers

 July 15, 2014  /  Comments Off on Golden Visa Beginning To Attract Non-EU Buyers

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According to newly published data from the Spanish General Council of Notaries, non-EU buyers from the US, China and Russia were the most active international buyers in Spain in the first quarter of this year.

Compared to the same period last year, in the first quarter of 2014, property purchases by these nationalities increased 88.9, 83.1 and 62.6 per cent respectively.

Nearly 20 per cent of all Spanish property sales in the first quarter were accounted for by foreign buyers, and non-residents accounted for 48 per cent of these transactions.

Golden Visa Beginning To Attract Non-EU Buyers

Regional Differences

Some of the regions witnessing the strongest rise in foreign buyers include Basque country, with an increase of 43.3 per cent, Catalonia, up 41.1 per cent, the Balearics up 36.4 per cent, Asturias up 34.8 per cent, Andalucia up 32.5 per cent and the Canary Islands, up 23.8 per cent. Madrid has also experienced a significant jump and is up by 42.5 per cent year on year.

International property purchases in Spain have been increasing for a while, with Brits now accounting for 13.8 per cent of all foreign purchases, the French are slightly behind at 10.5 per cent, followed by Russians, Germans and Belgians with 8.4, 7.5 and 6.9 per cent of total foreign property purchases.

The average price of a Spanish property purchased by a foreign buyer continues to drop and currently sits at €1,486 per square meter, a 3.8 per cent year on year fall.

Golden Visa Beginning to Work

According to propertywire.com, Kate Everett-Allen, head of international residential research at real estate firm Knight Frank thinks that “the growing presence of US, Russian and Chinese buyers is a sign that the Golden Investment Visa initiative, introduced in September 2013, may be starting to have an effect.”

The Golden Visa scheme, which was devised to attract non-EU buyers by offering a two year residency permit in exchange for a minimum €500,000 investment in Spanish real estate has already proved itself effective in neighbouring Portugal but until these latest findings, there has been little to suggest a positive impact in Spain.

The General Council of Notaries’ report also highlights which nationalities pay the most for their Spanish properties. Norway and Sweden topped the list in the first quarter of 2014, paying an average of €1,935 and €1,732 per square metre respectively.

The report also showed that irish buyers paid more than British buyers, although both countries sat somewhere in the middle of the list. Romanian and Moroccan buyers paid the least initial purchase prices, averaging €800 and €795 per square meter respectively.

Experts Opinion

Ron Wilkinson, Spanish property expert at Alta Vista Property said that the influx of foreign buyers is just the start of the Spanish property revival.

“The increase in the number of property sales to foreign nationals could be the catalyst for far greater things in the Spanish market,” he said.

“Once people begin to see that a huge amount of people are investing in the country once more, they will become more optimistic regarding the market, and hopefully that will encourage them to invest themselves.

“One of the main reasons property sales in Spain have fallen so much is the negative perception that many people have caused by the crash in 2007. Once people begin to alter their views, I am confident that sales will begin to return to their pre-crash peaks.”

Bradley Shore is a talented writer who specialises in real estate and investment blogging. He enjoys to provide information and tips to his audience and like sto hear feedback regarding his work.

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  • Published: 3 years ago on July 15, 2014
  • Last Modified: July 15, 2014 @ 5:32 am
  • Filed Under: Home Improvement

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