The Comunitat Valenciana accounts for a third of all foreign purchases in Spain
According to the regional government 16,619 properties were bought by foreigners in the Comunitat last year, 17% more than in 2012, although in fact the general council of notaries figure published in March was actually even higher, at 17,908. This meant a total spending of 1,731 million euros, 11% higher than the previous year, and it comes as no surprise to learn that almost 83% of the purchases (and 87% of the money spent) were in the province of Alicante.
It is also worthy of note that bargain hunters are finding more joy on the second-hand market than among new-builds, and that the amount of interest from non-resident foreigners has increased significantly: in 2008 resident and non-resident foreigners accounted for 25.4% and 14.3% respectively, but in the last quarter of 2013 these percentages had risen to 31.4% and 36.6% respectively.
In overall terms this contributes to the Comunitat Valenciana now accounting for a third of all residential property sales to foreigners in the whole of Spain, the other leading regions being Andalucía (20%), Catalunya (15.5%), the Canaries (11.3%) and the Balearics (6.5%).
The nationality of the buyers has also changed over the last few years: it would appear that many of the non-resident buyers are Russians, who are now the leading puchasers in the region having overtaken the British (although in the first months of 2014 the Russian market has decreased due to the weakness of the rouble). Only six years ago UK purchasers accounted for 40% of the market, but this proportion slipped to 13% in 2013. Scandinavian buyers have also become an important sector, accounting for 19%, while Algerians and Belgians made up 9% and 8% of the total respectively.
Many harbour concerns about the fact that property in the Comunitat is being snapped up by foreigners while natives are unable to take advantage of low prices, but it has to be admitted that this resurgent market, alongside the rental market, provides economic activity and employment. In the light of this, next month the regional government will be holding a meeting in Madrid with estate agents to explain how they promote the sector, with a view to both opening up new markets and strengthening those which already exist.
Courtesy :http://spanishnewstoday.com/
