The increase of foreign investment in real estate contrasts with the continued fall in Spanish investment
. Spaniards have fled from immovables in their own country because of the recent bubble; they don’t trust the sector anymore. Moreover, most of them even avoid the real estate in other countries.
Now, the Spanish investor is focused on equities and fixed income, while the international one sees more possibilities on the Spanish real estate. In 2013, foreign investment picked up for the fourth consecutive year and reached up to €6.5 billion, the highest amount recorded in the last 9 years and up to 16% more than barely a year before.
What is going on?
Well, the purchasing power is utterly different: Spaniards find it difficult to make ends meet economically so they have become more cautious, thus investing in safer actives such as fixed income or equities. Meanwhile, for international investors Spain is now a land of opportunities where they can buy and invest at very low prices.
In 2013, housing prices in Spain dropped by 7.8% on average. The Official Association of Property Registrars pointed that 11.15% of the home sales that year were made by foreigners, with the British (15.1%) and French (9.84%) at the head.
According to the Bank of Spain
, foreign investment in the Spanish real estate hadn’t exceeded €6 billion since 2004. Even though it is the highest amount reached since the crisis began, figures are below the ones recorded 10 years ago by 8.7%, when they exceeded €7 billion