Over Two Thirds of the Property Sold to Foreign Investors in Andalucía Are on Costa Del Sol

Over Two Thirds of the Property Sold to Foreign Investors in Andalucía Are on Costa Del Sol

The demand for the Costa del Sol keeps increasing

which good news for the whole region

A recent report from the Spanish Ministry of Development found that 7 out of the 10 Andalucía properties sold to foreign buyers during the first six months of the year were in Málaga.

A report published by the Spanish Ministry of Development showed that between January and July 2016, 70% of the properties in Andalucía sold to foreign buyers were in Málaga, which is the home of the Costa del Sol. This works out at 4,978 transactions, which is a 16.9% increase compared to this same period of time in 2015.

At the regional level there was a total increase in foreign purchasers in Andalucía of 18.9%, up from the 5,973 property transactions across the first six months of 2015 to a total of 7,105 sold in the same period for 2016.

The other Andalusian provinces are falling behind Malaga when it comes to properties sold to foreign buyers. Almería saw 797 real estate transactions registered, which was an increase of 33.7% for the first semester of 2015. Granada had an increase of 13.9% with 409 sales; Cádiz had an increase of 4.6% to 405 transactions; Sevilla had an increase of 47.1% to 262 transactions; Huelva had an increase of 23.5% for 126 transactions; Jaén saw an increase of 49% for 79 transactions; and Córdoba came in last place in terms of transactions with an increase of 16.6% for 49 transactions.

Spain’s housing market flourishing rapidly owing to the new properties and large influx of foreign investors.

Spain’s housing market flourishing rapidly owing to the new properties and large influx of foreign investors.

New construction is being snapped up by foreign buyers

which is great news for the Costa del sol.

The housing market of Spain seems to sound promising, due to the increase in the number of foreign buyers and also due to approvals given to several new construction projects.

Predominantly, the two main factors that triggered the last housing crash were the proliferation of newly built homes in Spain along with the large number of foreign investors, who had intent to realize profits hastily.

Apart from that, there were several other counter factors that played a role as well, but the unreliable builders and credit-backed buyers went into panic mode, thereby triggering the crash and putting all the financial entities in a tight position.

This would clearly create an impression that people were skeptical when they heard this news as they would not want the housing market of Spain to witness history again.

However, the best part is that things are not the same like how it was the last time. Now, there is no scope for unsustainable credit. Developers are also not desperately searching for land parcels and developing them rapidly. Instead, procedures are followed and the pace is not the same like how it was during the crash last time.

Based on the figures as released by Formento, plan approvals given increased by 57% during the first quarter of this year compared to the count of last year and the count this year stood at 16,782.

This figure is the highest for a single quarter since 201. However, it nowhere comes close to the previous count of 860,000 approvals back in 2006, which corresponded to 200,000+ approvals being granted on a quarterly basis.

Looking back, this was indeed crazy and a scary move, with a million properties being added in the housing market of Spain within a year. The pace at which properties are being developed in Spain now is manageable and the demand supply gap is maintained.

This has also resulted in the property prices increasing steadily, thereby attracting foreign investors, based on the findings of the Council of Property Registrars.

The statistics released by the Spanish body indicate that there is a 13% hike in the number of foreign nationals purchasing a property in Spain, with over 48,000 properties being sold to foreign investors in the previous year.

The British were the highest number of foreign investors at 21%, while the rest composed of buyers from France, Germany, Sweden and China. Due to the high demand by foreign nationals, property prices in Spain have started to pick up and there is a 6.9% increase quarterly.

Also, a total of 100,000 properties were sold in Spain in the first quarter of 2016, making it the highest in the past 12 quarters.

Potentially up to 100,000 Brit Investors May Receive Spanish Property Compensation

Potentially up to 100,000 Brit Investors Can Receive Spanish Property Compensation

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The financial crisis of 2008 has been especially harmful to property investors as property developers failed to secure their customer’s deposits before the worst hit.

The BBC has reported that an estimate of up to 100,000 Brits could very well receive compensation if they invested in property and lost their money.

Spanish Legal Reclaims (SLR) is the law firm behind this estimate and they believe that, as a result of a Supreme Court ruling from 2015, Spanish developers need to now pay back investors who invested in property marketed as off-plan. It’s been estimated that the Brits could receive up to £20,000 each in compensation.

One aspect of the boom in Spain was that people rushed to buy unbuilt homes “off-plan” so that they were able to get the best deals on the property. After the market turned sour in 2008 many of the more unscrupulous developers collapsed and the money that had been invested in them seemingly disappeared so now is the time to receive your lost off-plan deposit refunds

The Chief Executive of SLR, Luis Cuervo, condemned this and said that the money should have been placed into an account with a bank warranty that could cover the money even if the company failed.

The ruling by the Supreme Court means that financial instutions are now obliged to return the money to investors if the developer goes bankrupt or just disappears.

An estimated five million new apartments were built in Spain before the financial crisis hit. Many of these properties were built “off-plan”. A lot of these developments were later abandoned however, as developers continued to default and disappear after the 2008 crash.

It looked like the buyers were last in line to receive money from these firms as creditors went after them to reclaim debts.

It’s being recommended that Brits seek out the advice of an independent law firm that knows the law before trying to submit a claim. The law also states that a claim can only be made once. If the claim fails then there are no appeals and no way to make another one.

It’s being suggested that Spanish banks could end up paying out as much as £15 billion in these
off-plan development investors in compensation payouts as they will no doubt be the hardest hit as a result of all of these payments.