Scandinavians swoop on spanish property
Photo: Bert Kaufmann
According to Knight Frank´s Global Property Search, online searches for properties in Spain increased by 29 per cnet over the first three months of 2014 compared with the same period in 2013. With more than a fifth of all Spanish residential sales - 55,187 transactions - made by foreign buyers.
The figures follow a low ranking for Spain in Knight Frank's Global House Price Index, which placed Spain in 49th out of 54 markets tracked by the firm's report. Indeed, according to Knight Frank, prices dipped 1.8 per cent in the first three months of the year and 4 per cent year-on-year.
Nonetheless, sentiment is starting to turn positive in the country's housing market. Unemployment remains the biggest hinderance to a recovery, with 26 per cent of people still out of work, holding back domestic demand. Overall, though, the Spanish economy has now "turned the corner", according to the IMF, which says it is now growing at the fastest pace since 2008.
Figures from the Spanish Property Registrars, meanwhile, show that property sales jumped 14 per cent in the first quarter of this year compared to the previous three months; a glimpse of a positive turnaround, despite prices remaining down compared to the previous year.
Average national home prices increased 0.84 per cent quarter-on-quarter, marking the first time since 2006 that prices and sales have both improved at the same time.
Indeed, a real estate report, including a detailed analysis of the data made available from the Association of the Property Registries and the General Council of the Notary Offices, has confirmed strong growth in the percentage of home purchases by foreigners: purchases reached 11.15 per cent in 2013, a stark contrast to the 4.24 per cent of sales recorded in 2009.
The report also reveals that the 10 principal countries purchasing homes in Spain (Britain, France, Russia, Belgium, Germany, Sweden, Norway, Italy, Algeria and China) remain stable in their activity.
Spanish house builder Taylor Wimpey España attributes a large part of the rise in activity to Scandinavian buyers.
Marc Pritchard, Sales and Marketing Director: "The interest from Scandinavian markets continues to boom as buyers take advantage of favourable exchange rates and reduced Spanish house prices to purchase their dream second home abroad. Scandinavians, particularly those from Sweden and Norway, now make up over a fifth of our buyers in Spain - a huge increase on previous years."