As a result of the economic crisis, Spain’s luxury property market is
attracting wealthy foreign buyers on the lookout for quality homes that
are being sold at a discount of almost 20 percent.
Aside from its
climate, foreign buyers are especially drawn to the country following a
change in government policy that allows investors to apply for
residence permits provided they purchase property worth at least
€500,000, media reports said.
Ignacio Fiter of
luxury real estate firm Engel & Völkers said close to 85 percent of
the buyers, majority of whom are foreigners; pay in cash while the
remaining 15 percent take out mortgages for tax reasons.
The
majority of sales took place in the Mediterranean islands of Ibiza and
Mallorca, as well as Puerto Banus on the Costa del Sol in southwest
Spain.
Approximately 80 percent of buyers are foreigners, as
Spaniards have turned cautious or are still coping with the impact of
the economic downturn, said Jordi Puig of property consultancy CBRE.
Knight
Frank also revealed that the country’s property market saw strong
interest from buyers hailing from the United States, Venezuela, Colombia and
Mexico.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@allproperty.com.sg
Recent stories you may have missed:
THB45 billion worth of Bangkok projects on hold
Bangkok serviced apartment rents and occupancy declines
Industrial property demand on the rise
Jakarta still top of the world for prime property price rises