In November alone, the country has so far accounted for 43 per cent of enquiries received at Conti, higher than any other country including France which has held the coveted top spot for several years. The story was similar in September and October, with Spain outperforming any other destination.
This is the first time since 2008 that Spain has accounted for so many of our enquiries over so many months. It was very popular over the summer period, but there’s been a definite shift over the last six weeks in particular.
A number of factors are pulling buyers in. Tourism is booming, access is easy and the culture is familiar, but it has also become much more affordable - mortgage rates are very low, the pound has been getting stronger, and prices are still bottoming out in some areas.
According to figures from the General Council of Notaires, the first six months of 2013 saw international purchases of property in Spain grow by 13.6 per cent compared with the same period in 2012. In addition, the Bank of Spain has reported that foreign investment in Spain reached more than €2,834 million in the first half of 2013, the largest amount recorded since 2004. And the British are still the biggest buying group.
Estate agents in Spain are also reporting increased activity. According to Property Repossessions Spain, prices are starting to creep back up in some areas and people who have been watching the market are putting their plans into action in case they end up missing out on the best deals. The company has recently sold properties to British buyers who have been holding out for the last three years, but the current market conditions have convinced them to make the purchase. It currently has a two bed, two bathroom property in Almeria on its books with a sale price of €65,500, down from an original asking price of €298,000, but bargains like this won’t last forever.
Despite the recent boom and bust nature of the market, Spanish lenders are still willing to provide finance to foreign nationals, particularly if they can prove that they have a sound financial profile. Clients can generally borrow up to 65 per cent of the value of the property, and rates currently start from just 3.23 per cent.
As ever, it’s vitally important for people to seek the right advice. Bitter experience has taught many Spanish property buyers that scrimping on independent legal advice can effectively cost them their holiday home. Buyers should always go through the same process that they would follow if they were buying a property in the UK.
