Viva Espana! Brits boost the Spanish property market.
05 June 2013
Spain was one of the worst hit in the global economic recession for overseas property investment, but is now starting to see a renaissance of its vacation home construction industry and demand for holiday property. New figures released in the Bank of Spain and the Real Estate Registry’s annual report state that non-Spanish national investments in the country were up 17% in 2012 – their highest levels since 2004. Britons accounted for more than 16% of the share of the foreign market last year – which is around 1.35% of the total Spanish property market.
In an article titled “Return of the Cranes” published by OPP (Overseas Property Professional, May 2013) John Howell reports that new cranes have arrived at various site locations across Spain, and others that have been standing idle for years are now back in use – indicating that construction is commencing once again. Speaking to Des Rowson from DLR Properties he reports that “buyers are back, particularly at the lower end of the market. Prices are creeping up. We are finding it difficult to find good inventory at the right price.” These early indicators imply that there is increasing demand for investment in the country – which is driving developers to start and indeed re-start once forgotten projects.
Split by region, it is mainly the coastline areas such as Costa Blanca and the Costa del Sol that are seeing a resurgence in overseas investment as Brits migrate to Spain for holiday and retirement homes in the sunshine.
Overseas investment in Spain is only expected to increase, as in July new rules will come into effect that state non-EU nationals that spend more than €500,000 will get the automatic right to residency in the country in a bid to boost investment.
Pauline Bonnani has noticed the change: “We’ve always loved Spain as an investment country – it’s a fantastic location for Brits looking for a bolt-hole in the sun, but we’ve definitely seen an increasing number of enquiries for our investment opportunities on the Costa Del Sol.
“It’s interesting to see that big players such as Taylor Wimpey are returning to the market – which indicates a cautious confidence in the country and its future. Only time will tell if these early indicators show a genuine confidence in the market – but we’re hopeful it’s a sign of things to come.”
We are currently offering for sale a number of large 2 & 3 bedroom apartments on the new La Floresta Sur La Mairena development on the Costa Del Sol. Launched in April 2013 we have seen an impressive number of enquiries from foreign investors looking to purchase in high-quality and well-managed developments. Facilities include use of the El Soto Golf Club and prices start from €178,000.