The number of homes bought in Spain by foreigners increased for five successive quarters between 2011 and 2012 as they benefited from falling bargain prices.
The 3rd quarter of last year saw the biggest rise in home sales to foreigners, 18 % more than the comparable quarter in 2011 and a total amount of 8,803 transactions, official housing figures have revealed today.
This followed a 15.3 % growth in the 2nd quarter of 2012 and a 16.2 % rise in the first three months of the year.
Costa Blanca region holds top spot for buyers in 2012
The demand was focused around the popular coastal areas with Malaga on the Costa del Sol, publishing the second highest number of house purchases by foreign nationals, beaten by The Costa Blanca region.
Nevertheless, the popular rise in interest could possibly lead to a lack of the kind of homes that people actually want to purchase. ‘With the residential market in hibernation, some of the responsibility for recovery has actually fallen on to international shoulders however, certainly in the southern Costa Blanca area, they usually tend to want “the best property” on the market and these are in short supply,’ said Conrad A. Bedford, partner of estate agents and constructors Group Uno.
‘There are very few quality “modern build” villas or frontline beach apartments readily available and the old fashioned Spanish style finca’s have lost all the appeal that they offered back in the heady days … these kind of properties do not have the same appeal any even more…’ he added.
Bedford clarified that because 2010 there has only been a handful of developers on the Costa Blanca actively building contemporary brand-new build apartments and residences these have been snapped up quicker than anticipated.
He has actually likewise found that particular buyers still expect to discover rock bottom prices that really don’t exist in the top end of the market. ‘Prime homes in a Prime areas hardly ever discounted as consistent demand puts pay to that… ‘ he mentions – ‘albeit prices are nearly at 2005 levels, with savings of around 40% from the original prices are the norm’.
New demands from worldwide property buyers are now getting ready to enter into Europe – with new plans outlined last year by the Spanish government to offer residency to non European Union buyers.
‘We are really excited about the foreign ownership possibility – since this was mentioned last year we have actively designing and creating properties that fit the criteria — we have plans in place for our new developments of apartments and villas’.