There has been good news for the Spanish economy this week as new figures reveal that foreign investment in Spanish real estate in 2013 rose by 16 per cent from the previous year to €6.45 billion. This is the highest recorded figure since 2004 and is a big positive for the Spanish economy.
A collective sigh of relief was released by the country’s housing market which is now having to rely upon foreign buyers for its recovery as the continued rise in unemployment and the unstable economy repels domestic investment.
For international investment, however, the appeal of Spanish property is at an all time high. The decline in prices has fallen to only 4.1 per cent annually and although prices are still currently 40 per cent lower than the 2007 peak, they are expected to turn around and begin rising once more within the next six to twelve months.
15.1 per cent of foreign investors are British, according to propertysecrets.net, significantly ahead of the French, Russians and Belgians who contribute 9.8 per cent, 8.6 per cent and 7.3 per cent respectively.
Spanish authorities are actively seeking new foreign investors and have recently launched the so called ‘Golden Visa’ scheme in order to attract buyers. This scheme offers residency to investors from outside the European Union in exchange for a significant investment in the country’s real estate market. Thousands of investors, mainly from Asia, have already received Golden Visas in return for their contributions to the real estate market, and most are reporting that it is a very worthwhile scheme.
After 6 years of recession, the increase in investment could be signalling the beginning of an economic resurgence in Spain, many will be looking forward to the prospect of emerging from the recession, and hopefully this will encourage more domestic buyers as well.
Ron Wilkinson, a property expert from AltaVista Property,thinks that this is definitely the start of a turnaround for the Spanish real estate market. “The figures speak for themselves” he says. “We have had the smallest yearly fall in prices since the recession began, and the highest amount of foreign investment in over ten years! It is clear for all to see that the market is going to turn itself around within the next 18 months at most”.
He also has some advice for people considering investing Spain, “my advice would be to get in there as soon as possible. If you’ve already decided you want to invest, the time is ripe and you shouldn’t wait any longer as demand will only increase. Trends suggest that prices are unlikely to fall much lower and an increase in price is just around the corner. If you are having doubts, don’t keep them to yourself, consult someone, they are highly likely to tell you the same thing themselves”.
Things are certainly looking like they will improve for the Spanish property market, and in turn, the entire economy. After years at the bottom, fortunes are beginning to look up and hopefully, things will continue in the same vein.
Bradley Shore is an experienced travel and investment blogger, his key focus in his writing is helping people to knowledge them about the world, as well as guiding people in the right direction when making an investment.