Golden visa sparks investment in spanish property
Photo credit: Pepe Rodmon
The scheme, which offers residency to non-EU buyers who spend more than €500,000 in Spanish real estate, has previously thought to be something of a flop, attracting just 81 buyers in its first seven months, far below the pace set by other European countries, such as Portugal, which recorded 772 sales in its first 18 months.
"People coming here are not coming here for a visa, they are looking for a home in the sun," Markus Thoene of Sotheby's previously commented.
Now, though, new data from fotocasa.es shows that demand from foreign buyers has risen 21 per cent, helped by the appeal of the golden ticket. Buyers are mostly interested in property in Madrid, Catalonia, Andalucia, the Balearics, the Basque Country and Valencia, explains Cinco Dias, all of which are popular places for non-residents to settle.
Foreign buyers spent an average of €381,860 on apartments, led by Russians, who spent €678,424, ahead of Germans (€338,716) and other European nationalities.
Whether the scheme is having much of an impact or not, though, there is little doubt that demand is increasing from all overseas investors.
"Interest has definitely been re-ignited in the Spanish market," Sheena Campbell-Royle, Chief Executive Officer of Strategic & Buy, tells OPP Connect.
"The high-end residential market has maintained its attraction throughout the crisis within the core sales areas such as Madrid and Barcelona. The upper end of the coastal market, such as the Marbella area and the Balearic islands has also remained popular."
British buyers are also reported to have returned to the country's popular Costas, with Taylor Wimpey España previously telling TheMoveChannel.com that they have enjoyed a strong rebound in sales, accounting for almost a quarter of activity.
Estate agency Mercers, meanwhile, reported a record of 16 sales in July alone, while Sotheby's International Realty, based in Ibiza, recently announced that hit its sales tarets for 2014 six months early.