Recent figures released by the Dept. of Housing (Ministerio de Fomento) show that property sales to foreign buyers have increased significantly over the past 12 months. Whilst the domestic market continues to shrink, foreign buyers are now appearing, realising that it is now a good time to start buying property again in Spain as a result of the fall in prices over the last six years.
Sales have been strongest in coastal regions such as Alicante, Malaga and Girona. Year-on increases show Alicante (Costa Blanca) having risen 35%, Malaga (Costa del Sol) 60.8%, Canaries 25.7% and Girona (Costa Brava) nearly 52%. Given that the annual average increase across the country was 29%, it shows how popularity is returning to the Spanish coastline. Malaga showed an 80% increase over the second quarter compared with the previous year. Madrid, in contrast, foreign purchases fell 4.9% in Q2.
Foreigners now account for 1 in 6 of every property sold in Spain. Furthermore, the Spanish property market is expected to receive another boost when the Spanish government introduces residence permits for purchases over 500.000 Euros, expected sometime in October.
Another fact recently published showed that over 60% of foreign buyers pay cash for their purchase.