New Spanish government figures point to gentle housing market recovery
Figures released by the Housing Department within the Ministry of Public Works show that expats living in Spain spent 36% more on property in the first half of the year than they did in the same period last year.
According to the same source, foreign residents buying homes in Spain spent a total of €4.2 billion on Spanish property in the first six months, compared to €3.1 billion last year.
The majority of this expenditure, 88%, was on resale property, totalling €3.7 billion, up 43% compared to last year. In contrast, investment in new property fell by 2% to €469m.
According to Spanishpropertyinsight.com, the Valencian Community attracted biggest share of expatriate investment, around €1 billion, of which €889 million went to Alicante, home of the Costa Blanca. Next came Andalusia (home to the Costa del Sol) with €975 million, and Catalonia (home to the Costa Brava), with €817 million.
Amongst foreign buyers, those who were resident in Spain bought 25,602 homes, up 23% compared to the 20,839 purchased in the first six months of 2013.
Non-residents buying second homes increased by 12% to 2,065.This increase in demand is reflected in a slow but steady recovery in enquiries for international mortgage funding, with a spokesman for UK based international mortgage brokers Offshoreonline.org commenting, “We have certainly seen an increase in enquiries for Spanish euro mortgages, with buyers coming both from the UK and abroad, especially the Far East. Spanish banks are once again dipping their toes in the water and providing a buyer has a 30% deposit, some attractive financing deals are available.”
According to estate agents Lucas Fox, sales volumes are picking up both regionally and nationally in Spain, with areas such as Barcelona showing a more optimistic, former market. Nationally, transactions have risen from around 150,000 per annum to around 250,000 per annum. At least a third of offers are now producing sales, with buyers becoming far less speculative and more long term in nature.