New Property Investment Visa Attracts Foreign Buyers To Spain

Spanish real estate is being snapped up by international buyers with non-residents making up the biggest chunk of foreign demand, according to a report published by the General Council of Notaries. Foreigners purchased 14,593 homes in the second quarter of 2013, which is a 23% increase compared to the same period the previous year.

Non- resident buyers in Spain made up 43% of the total residential property sale the previous year, while foreigners resident in the country registered only a 4% increase in real estate purchases.
New investor visa category

This boom in the Spanish property market is attributed to the nation's new residency investment visa program. The new law enables non European Union nationals to obtain residency status in Spain if they invest in real estate. At present the threshold of such investments is 500,000 euros. This amount can be distributed across multiple properties.

The new visa program is retroactive. Therefore, non-EU nationals who have already spent 500,000 euros or more should be able to obtain a residency permit, provided their paperwork is correct. The lure of a Spanish residency permit and the ability to travel visa-free in Europe are attracting investors from outside the Eurozone like China and Russia. Property sale is brisk also for the reason that real estate in Spain is now selling at bargain basement prices.
New buyers replace traditional ones

The buyers of Spanish properties are traditionally the British, Germans and the Dutch. But real estate agents are reporting an increase of interest and buying from investors in the Middle East, China and Russia. According to Lucas Fox, a real estate consulting firm, there has been a healthy boost in sales of real estate located along the Spanish coastline. Buoyed by the new demand, the company has already established a new concern, Residency in Spain, to meet up inquiries from non-EU potential buyers.

The new visa category has attracted buyers not only from India and China, but also from Brazil, South Africa and the Middle East. Spanish real estate firms hope that these new buyers will stimulate the Spanish real estate market in places where high quality property is available. This in turn will encourage developers to build new properties particularly with overseas buyers in mind.
Popular places to invest

The most popular location of overseas buyers is found to be the Costa del Sol. The place is famous throughout the world for glamor and glitz and is the place to be seen in for investors from the Middle East. According to Taylor Wimpey Espana, a real estate firm, Marbella is the most popular choice. The resort town has always seen higher demand than the rest of Spain, with Middle Eastern scions investing in Marbella for years now.

But, according to Chris Mercer, director of real estate firm Mercers, not all regions of Spain will benefit equally. This is because average prices in other areas of the country are much lower and will not reach the minimum 500,000 euros requirement. For these areas, he said, an investment in the range of 250,000 to 350,000 euros would suffice. This also would attract more potential investors.

Source: www.property-abroad.com/