Foreign Investors Looking For Iberian Properties
News Posted On: 26 November 2013
Investors from the east are flocking to Spain and Portugal in large numbers as they look to make the most of the golden visas scheme and acquire fine properties for significantly inexpensive prices. People who purchase properties worth 500,000 euros or more claim that it is by far the best advantage of purchasing real estate in Portugal as they get free access to the European Union.
Prior to the recession, buyers from across the world visited Portugal and Spain because of the beautiful beaches. They would then purchase properties solely for the beauty of the location, but since the economic crisis left the Iberian peninsula stranded in debt, investors are now taking full advantage of low pricing and the visa scheme.
Asian investors are especially interested in the scheme as they can travel freely to any location in one of the 26 countries that form part of Europe’s Schengen zone. Both Iberian nations currently have around three million unsold homes, and the government of Portugal has revealed that 318 permits have been issued thus far following the country’s decision to lure investment through the golden visa scheme.
Over 200 million euros have been invested in Portugal in the past year, with residential property sales contributing a large percentage of that figure. It is anticipated that over 300 million euros will be invested by the end of 2013.
Other nations following Portugal’s lead
Real estate analysts in Iberia say that interest has been growing like clockwork since the golden visa scheme was announced, and many more interested investors are actually buying homes rather than merely declaring interest. The number of inquiries regarding real estate assets has increased considerably, especially from investors seeking the residency permits. Prices in Spain fell 35 per cent since 2008 when the market crashed, but the introduction of a similar scheme as its Iberian neighbours is now bringing back the investors.
Barcelona is one of the main destinations that is attracting a great amount of interest. Businessmen are keen to invest in properties in the Catalonian city, thus making purchases that are well over the minimum limit. Portugal’s strategy has also been implemented by other European nations such as Greece and Malta where visas can be acquired on real estate purchases worth 250,000 euros and 650,000 euros respectively.
Several Asian property portals have opened up selling in Portugal and Spain as both governments have identified the Asians as their main targets. Websites in Asian countries offer properties ranging from flats that are worth 80,000 euros to villas that cost 15 million euros touting Portugal’s and Spain’s cultural attractions, restaurants and bars, universities, beaches and excellent air links to some of the biggest cities in the continent.
Market insiders suggest that Spanish property sellers are interested in conceding their assets to the Asians. In fact, they are open to selling to anyone who is interested, but most of the current interest hails from Asia. Since real estate prices in Asia are booming, people are seriously considering moving to Europe and cashing in on some of the finest properties.
Written by Les Calvert
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