Luxury real estate in Spain attracts attention of investors

In spite of the crisis, premium real estate in Spain keeps developing, according to “20 Minutos”.

Investment funds and individual entrepreneurs understanding that now it is the best time to buy luxury real estate for a reduced price are expressing more and more interest in Spanish premium real estate. The cost of such properties has been reduced by approximately 20% during the crisis. Investors use this opportunity in order to find and profitably purchase high-class properties.

According to Jones Lang LaSalle, an advisory company, during the first six months of 2013 the demand for luxury real estate in Spain has grown by 170% in comparison with the same indexes of the previous year.

Luxury real estate in Spain has become even more attractive and cost-competitive, now is an object of intense interest of foreign investors. Their share amounts to 80% among the purchasers of luxury real estate. This points to the fact that the purchasing power of the Spaniards themselves still has not been restored since the economic recession.

Foreigners are attracted by warm, mild climate, the famous Spanish lifestyle, local food and wine. An extra motivation for purchasing premium real estate in Spain is the decision of the government to give residents permits to foreigners who have bought real estate at a price amounting to 500,000 euros or more. You can read about this topic in detail in our article “Spain will give residence permits for real estate purchases”.

Apart from an increase in the quantity of deals with the presence of foreign funds, experts note an influx growth of the foreign investment funds.

As a result, the most interesting real estate objects in Spain are being sold quite fast. Moreover, 85% of the purchasers prefer to pay the entire sum at once and only 15% recourse to mortgage services, but normally it happens due to Spanish tax system peculiarities.

The main group of investors interested in premium real estate in Spain is formed by citizens of U.S.A., Mexico, Venezuela and Colombia. The most frequent purchasers of real estate in Barcelona are investors coming from Russia. As a result of a price fall for this type of real estate, splendid villas have become available not only for millionaires, but for middle class representatives as well. Now, the share of Russian investors in the luxury real estate sector on the Spanish peninsula amounts to 15% and experts say this index will keep growing.

Potential luxury real estate purchasers are mostly interested in location, living space and materials employed when constructing villas.