It is a well known fact that sales of property in Spain are at historically low figures at the moment when compared with other years. However the figures themselves are skewed somewhat by the fact that they do not tend to distinguish between the diminished internal demand (due to lack of credit and the ongoing crisis meaning that Spain has effectively been in a crushing recession since 2007) and the soaring international demand for Spanish property that has now reached or even exceded 2007 levels in many areas due to the low prices, favourable exchange rate and the fact that many other countries are now exiting their own recessions.
The largest number of sales to foreigners was made in the Valencia region (Valencia, Alicante and Castellón) in 2013. The figures for this area are quite astounding and now they make up over 20% of all sales in the market. See the table below.
From the table we can see that sales of Spanish Property to foreign buyers have increased markedly in the last five years and they are now back to pre crisis levels in many areas. The biggest market in Spain for foreign buyers is the Valencian Community. Sales have increased in the last 5 years by just over 100% in total with a total of 17,908 transactions last year comparing favourably with 2007 figures of 17220. Another interesting facet is the number of sales made to other nationalities other than the traditional Spanish property markets of the UK, Ireland and Scandinavia. More Russians, Chinese, French and Belgians are moving into the market along with previously unknown purchasing countries such as Canada, the USA and Australia. Sales to South Americans also increased markedly in the last year which goes against expectations as immigration figures from those countries have been falling consistently and many South Americans have moved back to their countries of birth.
We expect the gross figures to grow this year too although the percentage of sales to foreigners may drop as the local market picks up too due to banks starting to offer mortgage deals for some qualified clients. Already the first quarter of this year has seen more deals agreed, more visits made and more interest shown than the corresponding period last year. Hopefully this will continue now we are getting into the traditionally busy spring period as temperatures warm up nicely and the sandy beaches of Spain start looking extremely attractive to those in Northern Europe and beyond.
If you want to know more tell us exactly what you are looking for by mail to firstname.lastname@example.org. We will get back to you and hold your hand through the process of buying property in Valencia or even throughout the rest of Spain.