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Spanish Property Market
Spain offers relatively cheap real estate for anyone wishing to live in inviting Mediterranean climate and it relaxed lifestyle. With great beaches, fun nightlife, many cultural regions and historic cities, Spain makes a great destination.
The Spanish property market is in the recovery mode since from the crisis that effected many parts of Europe. Spanish home sales are on track to return to pre-crisis levels this year, with half a million properties being sold, according to a study by Madrid-based BBVA Research. That would be the highest level since 2008, when the housing market was crashing. Citing improved economic and financing conditions, BBVA predicts the total number of transactions to rise 10% this year while prices increase by around 3%.
Accordingly prices are relatively cheap, especially for foreign investors. Spain has an ‘open door’ policy for foreigners to buy property with over 13% of total home sales over the past year. Beside the traditional European investors, there has been an increase in Russian and Chinese investors.
Today, growth rates are nearly back to levels during the pre-crisis boom years, with increase in exports, as Raymond Torres, chief economist at Funcas, Spain’s savings banks foundation said, “For the first time in recent history, we have a recovery that is not associated with a deficit in the current account. The economy has been growing strongly for more than two years and still we have a significant surplus.”
The improvement in the Spanish economy has also been reflected in the Spanish commercial real estate market. This new trend has been particularly evident in the market for foreign investment in second homes on the Spanish coast and in office space in Madrid. New financing to acquire shares and assets of Spanish banks and financial institutions has helped support prices. Spain has ceased to be a risky alternative for real estate investment. It is now a market of genuine opportunities in real estate and business in which investors are starting to compete.