Get to know the profile of foreigners investing in Malaga’s real estates
The current trend is increasing in favor of Nordics, Russians and Chinese
During the past year, taking advantage of the sharp correction in the real estate sector recorded since the bursting of the bubble in Spain foreigners bought more houses than ever. In particular, international investors bought about 48,000 homes, representing an increase of over 13% and over 13% of total purchases, according to the statistics shown by Ignacio Acosta.
This is evidenced by the price index Housing repeat sales that produce the Property Registrars, and which also shows that the citizens of UK are by far the most houses bought: 21% of the total. This implies that some 10,000 homes were acquired by investors or tourists of this nationality at a time when he is in doubt what the relationship of the United Kingdom with the European Union (EU) will, something that could certainly be of great relevance and an event like Brexit and its consequences significantly hamper trade and trading relationships.
Far from the British are the French, Germans or Swedes, who accounted for between 6% and 7% of purchases. Chinese citizens with the Golden Visa and Entrepreneurs Law, who are increasingly looking for investments in Spain, made just over 4% of the total.
The foreign buyer still found in the Spanish residential market a great investment opportunity, especially now with housing prices lower. This interest is even more tangible in areas such as the Costa del Sol, where foreign demand has registered an excellent performance last year according to the Report of the Residential Market of the Costa del Sol 2014, compared with a stagnant domestic demand for economic context, unemployment and difficulties in obtaining financing.
The study highlights this interest by foreign investors in the Costa del Sol (Malaga) for cash acquisitions of second homes and vacation housing, with 90% of their purchases without funding. Very different from domestic buyer, which requires 75% of cases of financial aid to buy a villa or house on the Costa del Sol and 85% when it comes to flats.
About the prospects of the real estate sector in Costa Malaga, despite the factors affecting demand will remain during the current year, improvements in socioeconomic conditions and access to funding improve the number of sales . It is also estimated that the volume of housing stock and the slow recovery in demand will lead to new adjustments in housing prices this year. This price adjustment on the Costa del Sol allow, to remain an attractive market for the buying and selling of property by foreigners.
In this way, both in the western Costa del Sol and in the eastern Costa del Sol (La Axarquía), reductions of more remarkable prices will occur in homes that are located in delocalized areas, i.e. away from the center or in areas less attractive market for holiday home. Meanwhile, in promotions located in exclusive areas of cities and in holiday housing developments, in general, the price adjustment will be appreciated not so obvious.
Financial institutions, banks and SAREB will be the main players in the property market in the Costa del Sol, both through direct sale of housing to individuals and the sale of large residential portfolios to investors, either finished product or debt credits promoter. As for the volume of new developments, the results will be limited and will be focused on specific market niches, says our real estate specialist.
The study also analyzes the market for homes for rent in the Costa del Sol, which continue to rise and will be the first beneficiary of the situation, especially by the young age of emancipation for whom it is impossible to access home ownership .
However, each nationality has its own different characteristics and meeting their needs and criteria depending on the use, location and type of housing demand.
The British are still the most are packing bound Spain to buy a house, followed by the French and the Russians. Others, like Belgians, Germans, Swedes, Norwegians, Chinese and Arabs continue to swell a list that has remained stable in recent quarters. Specifically, the British, who accounted for 15% of home purchases from abroad in 2013, are what they know best our country and most knowledgeable about property investment in the Peninsula.
The houses they buy are distributed throughout the Spanish coast and islands, with the particularity that choose to complete developments for them, and even whole villages, such as El Capistrano in Nerja (Málaga).
UK citizens often demand apartments and townhouses, small, practical, cheap and able to enjoy during their stay villas. In addition, during the months they spend in their home country, they choose to give up their homes for rent to national operators.
Besides being the foreign community that housing purchase in Spain, the British are also more leave. According to the National Statistics Institute (INE), the number of British residents in Spain fell by 90,000 people during the last year, from 385,179 to 297,229.
Meanwhile, the French made in 2013 nearly 10% of all foreign individuals operations carried out. Usually, they buy small apartments to (with exceptions of some who buy luxury goods) the lowest possible price, and centralize your search, driven by the good climate and gastronomy in the coastal areas, especially in Catalonia, most recently in Almeria. Despite constituting the second nationality in purchase volume, the number of citizens 12.7% was also reduced in 2013 to 100,000 residents.
Alternating with the French in the ranking are Russian citizens. Take 8.58% of total foreign purchases. They are characterized by demand luxury housing, especially detached large houses and penthouses in Costa del Sol, Catalonia, Alicante and. Most seek proximity to international schools, in cases of change of residence, or proximity to the sea, in cases of purchase a second holiday home.
According to the specialist to deal with estate agents, the Russians have the peculiarity that they need to feel comfortable and confident before buying. To do so, often require the services of other countrymen to make their intermediaries.
The Russians like properties of high standing. Rarely they buy homes that require reforms and pay close attention to the neighborhood, views and privacy. A curious fact for Russians ceiling height is very important, the higher the better.
2013 has also been a year with a lot of real estate activity in the hands of the Belgians. They have invested heavily and have acquired more than 3,800 homes (five times more than in 2007). Your purchases represent more than 7% of total operations.
Attracted by the sun and the beach, they go behind houses located especially in Andalusia, Barcelona and the Balearic Islands, looking to enjoy their vacation periods. During the rest of the year, they choose to monetize their holiday shopping by placing them available to other compatriots.
Those who usually choose our country to stay are the Germans, who besides choosing Spain for their holidays, they also make it as a destination to enjoy their retirement. As its president, Angela Merkel, who has been spotted enjoying free days in Mallorca, German citizens feel a special predilection for the largest of the Balearic Islands. Usually they choose apartments or small chalets indoors developments.
In 2013, purchases of Germans accounted for 7% of total foreign operations in Spain, although its volume of transactions not just rallying for tax planning and legal security perceived in the Spanish real estate product.
Despite being responsible for much of the purchases made by foreign hands, the Germans were the community that, in percentage terms, saw reduced its presence in Spain. Specifically, throughout 2013, the German community decreased by 23.6% to 138,917 members.
Citizens of the Nordic countries mainly buy homes in the Costa del Sol to enjoy during the winter. Often they choose more spacious houses with one bedroom and integrated into the village, and, if possible, well connected to not drive. Although in summer they return to their countries, they are not very supportive of your investment through rents when their houses are empty.
One of the most particular nationalities presents is Chinese. For these customers, Spain has become an important investment destination. Seek or settle in our country to become economically independent (every day have more business in Spain) or to get a residence permit under the Act of Entrepreneurs, in force since October 2013, and that allows a visa residence to non-EU foreigners to buy a property of more than half a million euros. As a result of this law, beneficiaries can travel through Europe and do business throughout the EU without restrictions.
The demand for housing by the Chinese is scattered throughout the country, especially in the interior and large cities, except in some coastal tourist areas, where businesses open. They claim all kinds of products and prices, but they do a great job market before buying and, like Russian citizens, they also like to have the trust and brokerage of his countrymen when conducting business.
Although quantitatively lack a great weight, foreigners from Arab countries and the Maghreb are the most active in the prime market segment and have an increased interest in buying in Spain, both in terms of investment as residential-holiday.
For example, the vast majority of Saudis demand houses and apartments in the most exclusive areas of Marbella and its surroundings. To a lesser extent, making purchases in coastal districts of Barcelona, in areas such as Diagonal del Mar. With regard to the purpose of housing, these properties are usually intended for your holiday use and in a small percentage, investment.
In addition to the Saudis, Kuwaitis represent other nationalities who handle more purchasing power for their purchases. Over 90% of them choose the prime areas of Marbella and its surroundings. On the other hand, the other customers in the Middle East: Lebanese, Egyptians, Iraqis, Libyans, Jordanians, etc., mostly opt for buying apartments in Barcelona. A market for their activity throughout the year and its proximity to the beach considered a safe investment.
The current trend in the country
In the opinion of the majority professionals, the most interest today to buy property in Spain are the Russians, the Chinese and Nordic. Faced with weak domestic demand, the foreign customer is an increasingly strong appeal. In Spain, the number of registered Chinese and Russian only accounts for 4.1% of all foreigners, but no one denies that have become active buyers in the Spanish real estate market since the crisis. The fall in housing prices has led and put into this growing investment tray.
The profile of Chinese buyers attending two ways. On the one hand, there are the billionaires who like to buy spectacular homes in the best areas, especially in cities like Madrid and Barcelona, as revealed some promoters, but also like to buy second homes in Mallorca and Marbella , regardless of whether there are more people of Chinese origin in the district or in the building. On the other hand, there is a part of Chinese middle class population that invests in the Spanish brick for work, showing a preference for houses between 60 and 80 square meters, or even lower. Registration data are in line with this growing interest. Autonomies with more Chinese empadronados are Catalonia, with 49.290, and Madrid, with 46,032, far from the figures presented by other coastal communities such as Valencia, with 19,344, and Andalusia, with 17,789. According to the National Statistics Institute earlier this year. in Spain there was a total of 175,813 registered Chinese.
As for Russian buyers, usually, both buyers with high purchasing power as middle-class citizens. Buyers average common purchasing power couples usually 30 to 50 years, who opt for second homes apartments of one or two rooms. In 2011, the Russians bought a total of 1,645 homes in Spain, it ie 7.86% of the purchased by foreigners, and did so mainly for tourism purposes. Unlike the Chinese, they tend to concentrate their real estate acquisitions on the east coast, on the Costa del Sol and Costa Almeria and unique properties in Madrid, Barcelona and Marbella. In fact, already it is beginning to say that they are displacing the traditional market of British buyers. According to INE, in early 2012 there were 57,275 Russians in our country.
Written by: CAPD
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