The real estate sector in Spain continues to attract investors' appetites, remaining for the third consecutive year above the volume of 9.9 billion euros. To the traditional investment in retail and offices, logistics and hotel assets are maintained upwards thanks to the boost of 'e-commerce' and tourism. 2017 concluded with a direct investment of 10,400 million, according to BNP Paribas Real Estate.
The uncertainty about the process of independence in Catalonia since 1-O hardly affected the tsunami of investment in the real estate market in Spain. The figure increased by 45% in one year - with special emphasis on retail, hotels, logistics and residential- and even surpasses the data of acquisitions of the past decade, before the real estate crash.
Well situated in the heart of the Mediterranean, Majorca has been visited by a record-breaking number of tourists in the last three years, partly because terrorism and political unrest have made destinations in Turkey and northern Africa less desirable, said Mark Harvey, a partner in the international residential team at Knight Frank. At the same time, the market for vacation homes has soared, outpacing the market on mainland Spain.
Spain has suffered a long period of economic uncertainty over the last nine years, but research has shown the country’s economy is bouncing back, with levels of gross domestic product set to exceed that of pre-2008.
There are almost two-and-a-half times as many UK citizens living in Spain as Spanish citizens resident in the UK.
After years of legal wrangling and setbacks, British homebuyers who were caught cold by the Spanish property market crash are finally beginning to recoup the millions they paid for holiday homes that were never built.
Demand from Britons for holiday homes in Spain and Greece has fallen sharply as Brexit uncertainty and the fall in sterling drive house hunters away
There has, understandably, been a huge focus on Brexit recently. While much speculation has been said about how the UK will fair, what does this mean for our European counterparts?
Spain’s recovery has been phenomenal over the last two years which has filtered through into the property market. Much of the property recovery only started to happen when we saw prices rising around 12-18 months ago and whilst there was some initial concern as to whether Spain would bounce back to its former glory, it certainly seems like the appetite is back with a vengeance.
Frankfurt and Brussels are emerging as tempting alternatives to London as European financial hubs in part because they have cheaper accommodation costs than Paris.
The global real estate crisis hit Spain in early 2007. In Barcelona, home prices plunged by as much as 40 percent and sales didn’t pick up until 2014, said Alexander Vaughan, a partner at Lucas Fox International Properties.
“From 2014, there were a lot of international and institutional investors coming into Spain, and that really brought confidence back into the market,” he said. “Only last year prices started going up slightly, but they’re not yet close to recovery.”
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