Who and why?

Spain has always been one of the most popular holiday destinations for many foreigners, particularly those from other parts of Europe. A great number of them have also invested in property here at one time or another.

Many felt the pull of the fantastic quality of life, the weather, the beaches, the food and, not to mention, the excellent transport links between this country and their own country of origin, all of which were determining factors when it came down to deciding to buy their own home here.

Property purchases increased by 21.6% in 2014. According to the Department of Public Works, a total of 365,594 transactions took place last year, and part of the reason that the Spanish real-estate sector has initiated its recovery is due to the continued interest of foreign buyers.

During the last couple of months, the number of property purchases carried out by foreign residents who already live in Spain has continued to grow.

They are still predominantly swayed by the economical prices of some of the properties on the market.

Out of the total of 365,594 transactions, more than 72,000 involved foreign residents. The average cost of each purchase was around 152,000 euro.

But who are these foreign buyers? According to a report from TM Grupo Inmobilario, many of them are foreigners that have frequently visited Spain on holiday and, who after getting to know the country, or an area, have decided to buy a holiday home in their favourite location.

The report describes the typical foreign investor as a 53-year-old man with children. On average, this family has an annual income of around 66,000 euro.

Additionally, a large percentage of these buyers eventually end up settling down here permanently, or at least semi-permanently.

The Brits are still the nationality that purchases the most property in this country. They took part in 18.62% of all transactions made by foreigners.

They are followed by the French (9.39%), Germans (7.25%), Belgians (6.90%), Italians (6.13%), Russians (5.83%), Swedes (5.83%), Chinese (4.14%) and the Norwegians (3.74%).

A few years ago, the Russians were snapping up property in Spain faster than you can imagine, but since the devaluation of the rouble and the fall in petrol prices, their interest in Spanish property has lessened.

It must also be noted that Mexicans and Columbians are buying more property here than before, although not in the same amounts as the top nationalities at the moment.

The majority of buyers have a high purchasing power, money saved up, and invest in a second home rather than a main residence.

Although property prices have not been reduced at the same rate across the country, the foreign buyers are mainly interested in three areas: the Mediterranean coast (Barcelona, Alicante, Girona and Malaga), the Islands (especially Mallorca, Ibiza and Tenerife) and Madrid.

Source: www.expansion.com

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