Property in Spain is receiving a boost in areas popular with Russian and French buyers. Despite prices falling across the country, it seems certain locations are bucking the trend, albeit slightly. Property Wire reported figures from the Public Works Ministry showing that 8,803 houses were bought by foreign buyers in Q3 2012. This is a rise of 18 per cent from 2011 and is helping to drive demand in certain areas.
For the market as a whole, this is good news, as the country continues to suffer from an oversupply of real estate and a wealth of distressed assets. In a bid to encourage more transactions, the Spanish government has already turned to drastic measures, offering foreign buyers from Russia and China residency permits in exchange for investing in a home worth over £130,000.
According to a recent market study from estate agents and developers, recounted by the news portal, activity will continue to centre on Girona, Barcelona, the Balearic Islands, Malaga and Alicante, which are already proving popular with Russians and the French. Ramxn Coromnas told the press that coastal resorts like Lloret de Mar, Blanes and Roses have witnessed slight price increases as a result of this demand. Resorts like Alt Emporda are also popular with the French, as they are close to the border.
However, there is a fear that activity will slow once again once VAT increases on new homes on January 1st 2013. The removal of mortgage tax benefits for families could also have an effect on sales of properties bought for residential purposes only, opposed to holiday rentals for example.
Nevertheless, as property prices continue to fall in much of the country, the interest of foreign buyers in obtaining bargain real estate shows little sign of abating. The latest figures from Instituto Nacional de Estadistica have revealed that prices dropped by a further 15 per cent in Q4 2012, continuing the country’s downward property spiral.
Article by +Peter Mindenhall on behalf of Propertyshowrooms.com News Desk (http://www.propertyshowrooms.com/news/)
