The Spanish market is increasingly attractive to foreign investors due to the low prices and fast capital growth available.
New figures in the Bank of Spain and the Real Estate Registry’s yearly report found that foreigners are propping up the country’s troubled property market following a long-standing recession.
It exposed that foreign investment in Spanish property increased by 17 % 2012 compared to the year before - and British property investors are topping the polls.
UK residents accounted for more than 16 % of the share of the foreign investment market of 2012, which equates to around 1.35 % of the total property market.
France came second with investments in Spain totaling 10% of the foreign purchase market, and Russia made up the 3rd spot with 9.6 %.
However, there has been much talk of interest from China and Germany, with these two countries contributing 4.3 per cent and 7.9 per cent respectively.
According to Spanish Property Insight, foreign investors bought 26,871 residential estates in Spain last year, accounting for 8.12 % of all home purchases.
This is a extreme uptick from 2009 when foreign buyers made up only 4.2 % of total purchases.
However, split by region, some areas are seeing their property sales significantly propped up by foreign investment in Spain.
This is mainly the coastline which is famous for its holiday and pension homes among north Europeans. The information resource revealed that as a percentage of buyers, foreign nationals accounted of 33 % of total sales in Alicante on the Costa Blanca, 27 % in Tenerife and 25 % in the Balearic Islands.
It is expected that the boom of foreign investment in Spain will accelerate following the passing of the new residential visa regulations.
Coming into effect in July, the rules state that non-EU nationals who buy property in Spain worth more than €500,000 will get the automatic right to residency in the country in a bid to boost investment.
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