Things appear to be looking up in the Spanish property market, which is good news for any clients thinking of buying property there
Spain remains the EU’s top holiday destination, despite the tough economic climate, according to new figures from Eurostat, the Statistical Office of the European Union, which has found that in 2011, 13 per cent of all outbound trips within Europe where made to Spain, with Italy and France coming in joint second place. These figures don’t include holidaymakers outside of the EU, however, so total visitor numbers are likely to be much higher.
With almost 10 per cent of the nation’s GDP deriving from tourism, this news will no doubt be welcomed by Spaniards. Furthermore with buoyant tourism sectors often driving local property markets, it’s no wonder that ever more foreign nationals are looking to purchase Spanish property. According to statistics from the Bank of Spain international property investment in Spain grew by 17 per cent to more than €5,445 million in 2012.
Spanish house builder Taylor Wimpey España says that Marbella in particular is one of the most popular places for foreign nationals to buy property in Spain. The company has experienced a 300 per cent year-on-year increase in sales in the area, proving that demand for Spanish real estate shows little sign of abating anytime soon, with non-residents of the country increasing their market share for six consecutive quarters.
Regional estate agents and tourism board have been making big efforts to improve Spain’s tarnished image among prospective investors, and this together with falling property prices has been contributing to the increased levels of investment the country is seeing from overseas buyers. The growing strength of the pound against the euro over the last few months has also been helping in terms of what you can get for your money.
For example, in February this year when the pound to euro rate was 1.1345, a €250,000 property would have cost a client £220,361. Since then, the exchange rate has improved to around 1.185, so it would now cost £210,970 for that same property – a reduction of £9,391, or 4 per cent, in the sterling cost of the property in just three months. Not bad.