Foreign Investment in Housing Market Continues to Rise in Spain

BARCELONA, Spain - April 30, 2015 - PRLog -- Foreign demand for housing in Spain has gradually increased year after year since 2009. According to a recent report from the Spanish Statistics of Property Registration, in the fourth quarter of 2014 foreigners represented 13.88% of the total property purchases in Spain, not only surpassing the overall figure of the previous quarter, but reaching a new record high.

These figures signify five years of solid growth, leaving well behind the 4.24% of the year 2009, to give way to a period of intense recovery, especially over the past two years.

Aleksandra Vassiljeva, sales manager at SBL International, states that, ‘This growth shows a new stability in the once precarious Spanish real estate market, which has now become an excellent opportunity for investment due the price levels of the last few years.’

The study conducted by the Statistics of Property Registration also reported that the nationality of the property investors from the fourth quarter of 2014 is quite varied. Heading the ranking by almost double are the British, who represent 18% of foreign investors and 2.58% of the overall purchases in Spain. They are followed by the French (9.39% of foreign investors and 1.30% of overall purchases), who are closely followed by the Germans, the Belgians, the Italians, the Russians, and the Swedes. Then come the Chinese and the Norwegians, while the rest of the nationalities represent less than 3% of the total purchases of foreign investors.

Aleksandra goes on to say that, ‘It should be taken into account that the order of the nationalities heading the ranking has suffered very little variability throughout the quarters. This factor further shows the growing stability of the Spanish real estate market because once a nationality decants towards a certain market they will not suddenly drop out collectively, but will continue to increase the level of demand.’

So, once again it is the British who lead the purchases of housing in Spain, followed once more by the French. The Germans have snatched third place from the Russians who are down to sixth place. This is notable because they had previously occupied second position on the ranking, reaching up to 9% of foreign investment. Without a doubt, this is down to Russia’s current exchange rate with the Euro which is causing Russian citizens to think twice before investing in Spain.

It is also interesting to note that the sale of new build property has descended in the real estate market, dropping below 30% in the overall property sales during the fourth quarter. It looks like this will become the norm, since there is very little activity in the construction sector, and the remaining stock of new build properties will progressively dwindle.

In the fourth quarter of 2014 the purchase of resale housing reached the figure of 70.35%, in contrast to the fourth quarter of 2013 when it represented 45.60%. Moreover, the purchase of used housing, as stated previously, is increasing with every coming quarter and will remain rising throughout the foreseeable future.

‘One of the effects of the economic crises was the almost complete disappearance of the real estate construction sector in Spain, which shortly beforehand, had reached historic heights of activity. Therefore, it would appear that the sales of new build housing will continue to decrease, and the only residential option in most areas will be resale housing’, finishes Aleksandra.