Spain will this year experience an influx of foreign investors taking advantage of cheaper residential property, and nationalities seeking to invest are likely to include some from countries such as Egypt, Iran and even Vietnam, says UK-based realtor Inmoaction.
Spain has been traditionally popular with the British, Germans, Scandinavians and the Russian, but more and more countries not already present are expected to arrive. “In the last quarter Inmoaction has been contacted by investors from Egypt, Iran and even Vietnam,” El Mundo quoted the agency, which specialises in marketing to foreigners, as saying. The different nationalities wish to exploit the sharp downturn in prices following the collapse of property sector which began in the nation prior to the global financial crisis.
The expected influx will be boosted by possible moves by the Spanish government to provide residency visas to foreigners who buy properties worth more than €160,000, the agency said. This is especially encouraging foreign investment interest and should boost demand. “Buying cheap to rent, buying very cheap to renovate and buying for tourism development will all be on the rise in 2013,” Inmoaction said. In one month, it received two enquiries from investors seeking hotels in Spain, with other enquiries interested in mansions or small palaces to convert into hotels.
Property valuer Tinsa reported recently that foreign home buying in Spain rose 18% in third quarter over the prior 12 months, with the most popular regions being the south as prices there continued to drop. Nationwide, house prices fell l1.3% in 2012.
Separately, El Confidencial reported that Russians have now overtaken Germans as the second largest foreign buyer on the Costa del Sol in southern Spain, and now make up 9% of all foreign buyers in the area, ahead of German buyers at 7%. British purchasers continue to lead at 35%, according to the Association of Developers and Constructors of Málaga located in southern Spain. “Russians are very elitist clients, and thanks to them, as well as the British and the Germans, you could say we are surviving,” association president José Prado said. Russians are very interested in buying property from banks, who now own 80% of the 10,000 newly built homes on the Costa del Sol.
