There’s no questioning the attractions of the Spanish Costas. With sea, sand and sunshine, they make the perfect location for everything from a quick weekend break to a permanent move overseas. While Brits and Germans have been heading to Spain for decades, Russian property investors and tourists have been a more recent addition.
Russian buyers in the Costa del Sol are nothing new. For several years now Russians have been scouring the area for upscale properties, so much so that the luxury market is flooded with them. In fact, recent data from the General Council of Notaries has shown that buyers from the former Soviet Union are now at the top of the ranking of investments in property costing €500,000 or more in three Spanish provinces.
Figures from the Tourism Board Malaga-Costa del Sol have shown a 17% year on year increase in Russian visitors arriving at the Malaga-Costa del Sol airport, with visitor numbers this year up to 42,861 from 36,610 the year before. Clearly the Costa del Sol continues to tempt Russian buyers, but the real story at present is the Costa Blanca.
At the same time as the Spanish Tourism Office in Moscow is reporting a sharp upturn in the number of people wishing to travel to Spain, based on visa application numbers, Marc Pritchard, Sales and Marketing Director of leading Spanish homebuilder Taylor Wimpey España, is experiencing a boom in Russian buyers looking to be part of the Costa Blanca property scene. He explains,
“We’ve noticed a definite increase in demand from Russian buyers of late. While interest in the Costa del Sol still exists, it’s actually the Costa Blanca that is attracting the majority of our Russian purchasers. Front-line properties that are well located for international airports, such as Alicante, are top of the shopping list, so developments such as La Recoleta III, Montesol and La Vila Paradis are all extremely popular.”
According to Eye on Spain, the Costa Blanca is becoming so popular with Russian buyers that they have overtaken even the British when it comes to foreign investment in the Spanish property market. While Russian buyers represented less than 5% of the foreign purchasers in Alicante just four years ago, they now account for half of the 7,000 sales made to non-Spaniards last year.
Taylor Wimpey España’s Costa Blanca developments showcase the high spec accommodation that Russians are seeking. Just two minutes from Punta Prima beach, La Recoleta III is a tranquil development of two and three bedroom apartments, including luxurious penthouses with solariums and outstanding sea views. Prices start at €142,000. Montesol in Calpe, one of the Costa Blanca’s most beautiful locations, has townhouses for sale from €252,000, while La Vila Paradis combines both apartments and townhouses, starting at €265,000. In line with Taylor Wimpey España’s reputation for delightful design, all three developments include prettily landscaped grounds and generously sized swimming pools.
Spain has experienced a country-wide improvement in air passenger numbers so far this year, with data from Spanish airports network AENA showing a 4.6% increase in air passenger traffic during the first nine months of 2014. The increase took the total to more than 153.2 million passengers, many of them travelling from Russia for inspection trips or to make cash purchases.
As well as visitors, investment capital has also been flowing into Spain. According to a report from Money Market UK, Spain is positioned first in Europe in terms of the amount of foreign investment received during 2013, equating to some €28,755,000.
Much of the investment has been in property and a recent report from Knight Frank Russia & CIS has placed Russians fifth for total investments in Western European real estate. As the Spanish market stabilises, thanks to both an increase in foreign buyers and strengthening domestic demand, rating agency Fitch has observed in a recent statement,
“The house price and mortgage market stabilisation reflects Spain’s macroeconomic recovery and banks’ increasing willingness to lend.”
With Russian interest continuing to drive forward property sales in the Costa Blanca, developers such as Taylor Wimpey España are feeling positive about the signs of the property market’s reinvigoration within the area. Marc Pritchard concludes,
“Russian buyers are not only providing a strong boost to the Costa Blanca’s property market, they are emphasising the desirability of high end developments across the Costas. The attractions of Spain’s golden visa programme mean that many of those purchasing property here have serious cash to invest, which is helping to ensure a healthy and stable property sector once more.”
For more information please contact Taylor Wimpey España today on 08000 121 020 or visit www.taylorwimpeyspain.com. Those residing outside of the UK should call 0034 971 70 69 72.
