August 2017 Update: Massive Increase in Foreign Interest in Spanish Properties
Do you have a property for sale in Spain? The fact is, the Spanish real estate market is at an all time high, with interest from foreign buyers reaching a peak this year.
Foreign buyers have purchased properties worth €888 million in Spain in just the first half of 2017. And this is only the start. Britons, Russians, Germans and other foreign nationals have purchased close to 14% of all the homes that were sold in Spain in 2016. That story is repeating itself in 2017.
A JLL report on the 2017 property market in Spain suggests that 2017 will be the eighth consecutive year when foreign buyer interest in Spain is likely to get even higher than before.
There’s a huge demand for bargain property in Spain or cheap property in Spain right now, and homes don’t stay on the market for more than 2 weeks at the most. The bidding process is highly competitive. So who is buying Spanish properties?
Britons have purchased 19 percent of the homes sold to foreigners so far, and continue to be the most dominant players in the Spanish property market, both on the buying side and on the selling side.
The French have been prominent buyers as well responsible for 8 percent of the sales. But it is the Germans who are the new force among foreign buyers.
There seems to be a great new interest among German investors to buy properties in Spain and other popular overseas property destinations, which wasn’t seen before. As of now, Germans are responsible for 7.6 percent of the purchases made by foreign buyers.
Swedish buyers are prominently positioned as well and are responsible for 6.7 percent of the property purchases. Swedish buyers have been holidaying in Spain and buying properties here since the 1970s. It is a tradition in Sweden to spend the winter in Spain, as weather conditions in Sweden are horrible around this time. The Swedish love affair with Spain continues even today.
Just as big on the Spanish property market are wealthy Arab or Middle Eastern buyers. There is an ever increasing demand for Spanish properties from wealthy investors from Israel, Lebanon, UAE, Kuwait and Bahrain, to name just a few countries.
Mexicans are big buyers of Spanish properties as well. Mexico is a fast growing country with a booming economy and rising disposable incomes. So we have more Mexicans than ever buying a dream house in Spain that they have always wanted.
The Chinese are the biggest buyers of overseas properties. They have invested hundreds of billions of dollars in buying overseas properties since 2010, and Spain remains one of their favourite destinations. Chinese buyers generally look for properties for sale in Barcelona, Spain and Madrid.
Russians continue to be heavily invested in the Spanish property market, though not as much as before, because of the problems with the Russian economy. Overall, the Spanish real estate picture looks very good indeed and we do expect things to simply take off from this point onwards.