Hordes of overseas buyers including British and Germans are showing increasing interest in Spanish real estate as the market begins to flatline in what many property experts believe is signs of it bottoming out, hopefully leading to an increase in prices towards the beginning of 2015.
More and more evidence is beginning to emerge from property professionals of vastly improved foreign demand for real estate in Spain.
OPP Connect reported yesterday that the real estate market is showing early signs of picking up in certain regions, with many Spanish agents reporting record sales and hitting targets earlier than was thought possible.
Spanish property consultancy Strategic & Buy and Taylor Wimpey Espana developers have both recently confirmed that overseas interest is on the rise.
What do people think?
Chief Executive Officer of independent property sourcing and purchasing specialist Strategic & Buy, Sheena Campbell-Royle, told OPP Connect that: “Interest has definitely been reignited in the Spanish market.
“The high end residential market has maintained its attraction throughout the crisis within the core sales areas such as Madrid and Barcelona. The upper end of the coastal market, such as the Marbella area and the Balearic islands has also remained popular.”
The ‘Golden Visa’ property and residency scheme recently introduced in Spain has also helped boost foreign demand as it lures overseas investors from countries outside of the European Union.
“We have noticed increased interest from private individual buyers searching for both long term investment opportunities or retirement properties as well as properties purchased to reflect a lifestyle change.
“British buyers top the ranking in Ibiza and British and German buyers do so in Mallorca. The Marbella area is more international, in that, although popular with the Brits, it also attracts the Russian, Chinese, Arab and American markets. These buyers are also attracted by the ‘Golden Visa’ option which allows buyers spending over €500,000 on real estate to acquire residential status in Spain.”
According to Ms Campbell-Royle, who was president of the British Chamber of Commerce in Spain for over 10 years, in general, buyers tend to be searching for good value for money, a stable investment and solid title, with more affluent UK investors showing serious interest.
“A lot of high net worth companies and individuals coming through the London market are coming back to invest in Spain. Fully rented out residential properties in the smart areas of Barcelona and Madrid are very popular but in much demand and difficult to secure, often going to locals ‘in the know’.”
Ron Wilkinson of Alta Vista Property, a Spanish property specialist based in Marbella and the Costa del Sol, says that the increased foreign interest could be the lifeline needed to start the ball rolling for Spanish economic recovery.
“Once people see that there is value in the market, we will have a huge surge in enquiries, leading to sales, both domestic and foreign. All it takes is a small amount of investors to get the ball rolling, and it has seemingly already begun with the influx of foreign buyers,” he explained.
“We would expect to see some sort of positive increase in the number of sales and the average cost of properties in the country by the beginning of 2015,” he concluded.
Bradley Shore is an experienced travel and investment author. He has been writing for a number of years for a number of different online blogs and websites.