Rising overseas property sales fuel spanish real estate revival

Photo credit: Kevin Poh

Data from the property register shows that foreigners bought 36,226 residential properties in the country, 35 per cent higher than the previous year and a staggering 82 per cent higher than in 2010.

Local demand, on the other hand, fell 4 per cent and has declined 31 per cent since 2010, marking the importance of international demand in driving Spain's property market forward. Indeed, foreigners accounted for 4.2 per cent of the market in 2009. In the final quarter of 2013, that share soared to 12.85 per cent.

According to the register, the biggest increase in demand came from Finland, up 90 per cent, followed by Sweden (65 per cent), while Chinese sales declined, despite the introduction of a new residency scheme designed to attract non-EU buyers into the country. Nonetheless, it is possible that, as the visas are only just being issued, any positive impact from the scheme may only be evident in 2014.

Estate agent Mercers confirms that Spain's recovery is building momentum, with its total sales for 2013 outstripping 2012 by a substantial 60 per cent. The surge in sales was driven by overseas buyers, with Brits making up almost two-thirds (64 per cent) of deals.

As buyer confidence continues to grow, the company predicts 2014 sales will eclipse those of 2013 by a further 30 per cent, although it doesn't expect any price rises in the first three quarters of the year.

Chris Mercer, Director of the Murcia-based agent, comments: “There's no question that Spain has had a tough post-bubble ride. In many regions, including ours, prices have fallen by half, and confidence took a tumble – along with Spain's economy. But now the Spanish Government expects an upgraded forecast of 1% economic growth for 2014 and the property revival is gathering momentum. Informed investors, in particular from overseas, are snapping up the bargains and traditional buyers are following in their wake – bringing life to this cherished property market.”