More overseas buyers pick up property in Spain, bank figures reveal

Foreign investment in Spanish property grew in 2011, claims report

Foreign investment in Spanish property grew in 2011 according to figures from the Bank of Spain.

After increasing by 27.8% through to the end of September compared with the same period in 2010 which experienced a mere 2.6% growth, overall transactions reached €3.6 billion.

The Bank of Spain reported that these investments exceeded €1 billion for three consecutive quarters, something not seen since 2008.

‘Foreign investment into Spain has been very changeable in recent years. It progressively declined between 2003 and 2006 only to increase in 2007 however, the upward trend was cut in 2008, during the economic crisis seeing foreign investment fall,’ said Marc Pritchard, sales and marketing manager of Spanish house builder Taylor Wimpey España.

‘However, the news that foreign investment in once again up is a sign that property market conditions are improving with property purchases in the third quarter of 2011 increasing by 19.2% over the same period of 2010, amounting to €1.1 billion,’ he explained.

‘The increase in Spanish property sales seen in the last quarter of 2011 has spilled over into 2012 as international bargain buyer’s hunt down the best Costa deals with Germany and Nordic countries outspending the Brits, who have been a little slow in spotting new opportunities,’ he added.

Currently the euro’s depreciation against the pound could mean that there will be numerous opportunities for Brits to buy in Spain, Pritchard believes.

‘As Spanish property seems more affordable in the eyes of British buyers there now seems to be a slow but sure increase in the demand for villas and apartments along the coasts,’ he said.

He pointed out that prices are reasonable, such as the new Lagunas del Sol development close to the heart of Ciudad Quesada /Rojales which has townhouses on two floors with two or three bedrooms, a garden, private parking and views towards the swimming pools and gardens which start at €114,920.

At the Calpesol development in Calpe on the Costa Blanca three bedroom houses with gardens, communal swimming pools, a roofed sun terrace and private parking start at €165,000.

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