Foreign Buyers Being Tempted By Spanish Bargains
News Posted On: 07 January 2012
Sales of residential property to foreigners living in Spain increased by 24.7% during the third quarter of last year when compared to the same period in 2010. The areas which showed the largest increases were the Balearics, Barcelona, Alicante, Malaga and Santa Cruz de Tenerife. Experts expect this trend to continue due to continuing low interest rates on savings and tax breaks.
But it's not just residents who have been tempted by bargain prices, the number of people buying properties to rent out is also increasing. Last year saw sellers knock a further 8.2% off their asking prices on average, and the average sale price also fell from 2,270 Euros per sqm in 2010 to 2,084 Euros per sqm in 2011. This is definitely a factor in the increasing demand.
Some experts are predicting these price falls will continue in 2012. A lot hinges on the banks, which still have millions of Euros worth of properties on their books.
However the Spanish government is keen to continue attracting foreign buyers and the regional government in Valencia has already set up a commission to assess ways of selling more homes to foreigners.
Valencia has proved to be particularly popular with overseas buyers during the last few years, with 23% of homes sold being purchased by foreigners and 30% of all sales to foreign buyers taking place in Valencia. However Alicante remains the most sought-after region for foreigners as they account for 85% of all sales there.
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Written by Les Calvert+
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