Spain has healed almost completely the wounds left by the Housing Bubble in 2008, and the property market is starting to grow faster than expected. Big part of this success is the foreigner property purchase in Spain, especially Great Britain. The prices of property in the UK have been touching ceiling in the past few years, and the British decided that Spain was a good option not only to invest, but also to retire or have their holiday homes.
According to the data collected by Bankia Studies Division 21,3% of the properties sold to foreigners in Spain were purchased by British buyers; this number is more than double of the following nationality: French, that bought an 8,7% of the properties sold to foreigners.
The most popular area among the British is Murcia: 9% of the overall properties sold in this autonomous community were bought by them. In total, there were 9.959 buying-selling transactions in Spain from the UK buyers last year. 38% of those took place in the cities of Alicante and Malaga, which shows that Valencia and Andalusia are also really popular among them.
The interest of foreign purchasers is one of the main cause of the increase on the prices in this areas and big cities, which grows the interest of national and international investment in Spain. The Balearic Islands have shown the biggest price increase in property in the first half of 2016, with a price raise of 2,8% in only 6 months. The following Autonomous Communities whose prices have increased the most are: Madrid (+2,7%), Cataluña (+2,6%), and Valencia (+1,1%).
The real estate market as an investment opportunity
The foreign investment is more popular in commercial properties and offices. According to the CBRE real estate consultant in 2015 60% of the money invested came from Spain, while this year, 3 of every 5 euros invested come from other countries. During 2016 6.400 millions of Euros were invested in the Spanish real estate market so approximately 3.800 million have come from international investors.
Housers gives the opportunity to Spanish and Foreigners to invest minimalizing their risk. It is a crowdfunding platform with different projects studied and analysed by professionals that allows investors to diversify their portfolio investing in different properties purchased below the market price. A budget is set and the property is renovated and rented until it reaches the target market price. The owners receive not only the final profit but also receive the profitability of the rent each month until it is sold.