The great recovery of foreign real estate investments in Spain
The number of overseas investments is back to the level of 2008
The number of foreign real estate investments in Spain has increased by 32.8% until June 2011, in comparison with the same period of 2010, according to the data released by the Bank of Spain. The increase of sales to overseas buyers reached the level reported in 2008, before the latest fall in the level of investments from abroad.
The number of foreign real estate investments in Spain started to gradually decrease in 2003. In 2009, real estate investments fell by 31.5%. Despite the current recovery, the Ministry of Development has carried out a “road show” aimed at stimulating foreign demand for real estate properties on the coast, where 50% of unsold properties are located.
The situation of the Spanish real estate market has been presented to the most important European economic centres; then, real estate promoters and financing bodies have gathered in Hamburg (Germany) to establish the old commercial relationships that have disappeared during the crisis.
In 2009, real estate investments were discouraged by the crisis in the property sector; indeed, they fell by 31.5%. In order to establish new contacts with overseas investors 14 Spanish firms went to Stockholm (Sweden). Next meeting will be held in London around the middle of October.
Spanish investments abroad also fell by 44.8% in comparison with the same period of 2010. Despite this, 126 million euros were invested in real estate properties until the end of June 2011.
Since 2003, investments abroad made by public administrations increased progressively from 388 million euros to 3365 million euros in 2007. This trend stopped in 2008 and investments fell by 44.9% until 2009. This fall has not stopped yet.