EU Published Data Shows Spain Leads Construction Above All Member States
EU Data published shows that Spain leads the way in 2016 as predicted in terms of new property construction. There was a 20.6% rise compared to a year ago. January figures state that the EU generally saw a rise of 4.4% meaning Spain is well ahead of rest. Only Sweden are close with 18% rise.
I am sure many of you are reading this thinking that Spain still has a stack of bank repos so why are they building more property! The simple answer is that unbeknown to most people it is a fact that foreign hedge funds mainly from USA and Canada have purchased entities set up by the banks to hold stock. These hedge funds have no desire to cash in quickly and can wait for the recovery period to repair the market. They will of course sell along the way but not like a couple of years ago when banks were open to any realistic offer!
Banks are no longer under any pressure to sell so get that notion out of your head if thinking of investing!
If you are looking to invest or purchase in Spain let our award winning experts give you free advise based on your individual requirements and desires.
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Spain Coastal Properties Rising Fastest. 6.1% a year TINSA Spain’s Premier Valuation Report
TINSA are Spain’s leading valuation company, they recently published figures stating that the average property on the coastal areas fell by 48.1% during the crash. Prices have now increased in one year 6.1% as stated by TINSA. This is not surprising to any local experts because reputable agents and developers are seeing unprecedented sales as demand is higher than ever.
Supply versus Demand; Let’s take demand first; Who is buying in Spain and what are they buying? A few years ago pre the global financial crash Spain was all about lifestyle which is not unexpected given the average temperatures, endless golden beaches and fine cuisine. Prices were driven up by demand and in many areas like for example Marbella the prices paid were impulsive, reactive and in no way offered value for money to the buyer. In contrast locations such as the Costa Blanca and Costa Calida (Murcia) were on the rise but not fully peaked which of course meant when the crash hit properties in these regions never had so far to fall before offering real genuine equity based on land value, build value etc.
No wonder then that investors looked further than Malaga when looking at investment over lifestyle. Leading Spanish Property web portals have shown for the first time enquiries and searches are as high on Blanca/Calida than on Costa del Sol. It is fact that buyers are now investing in Spain from all over the world not just from EU which was pretty much the case before generally. These canny investors from China, Canada, USA, Middle East, Far East and Asia are not looking for lifestyle. They are looking at opportunity and placing emphasis on capital appreciation and investment holding over 5 years for example.
If you are looking to invest or purchase in Spain let our award winning experts give you free advise based on your individual requirements and desires. Our tax experts can advise on the best way to buy, if you are buying for investment not personal use then buying via your company or setting up an SPV, Special Purpose Vehicle company may more efficient and easier on exit.