• Foreign buyers delight in the glut of Spain’s cheap Costa properties

    As prices hit rock bottom in a depressed economy, overseas investors are scooping up prime City and coastal real estate

    Although hundreds of Spanish families are still being evicted every day for defaulting on their mortgages, foreign buyers have returned in force to the country’s depressed property market.

    New data from the Bank of Spain last week showed that foreign purchases in 2013 exceeded €6bn (£5bn) for the first time since 2004.

    According to Knight Frank’s Global Property Search, online searches for properties in Spain increased by 29% over the first three months of 2014 compared with the same period in 2013. More than a fifth of all Spanish residential sales – 55,187 transactions – were to foreign buyers.

    “Foreigners are the only dynamic segment of the market today,” says Mark Stucklin of Spanish Property Insight. “These are people buying on the coast and in cities like Barcelona.” And it is not just private buyers, he says: institutional investors are also in the market. “The likes of Goldman Sachs, JP Morgan, Blackstone, George Soros and Bill Gates are all getting into Spanish real estate.”

    Categories: General

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