After years of being in the doldrums, the Spanish real estate market is poised for recovery, following the approval of Spain’s Golden Visa, which according to analysts has the impetus to attract offshore investors and homebuyers.
The ‘Golden Visa’ scheme, officially made into law after King Juan Carlos I signed it on September 28, aims to boost foreign investment through granting residency visas for non- European Union (EU) nationals who would spend a minimum of half a million Euros on Spanish properties. Barcelona-based estate agency, Lucas Fox, said that the new law would create a positive effect on the Spanish property market because not only could it fuel the generation of more property projects but would also increase the transaction volumes considering the rising interest of offshore buyers.
'The interest surrounding the anticipated approval of this new legislation has already generated a huge amount of interest in China and India, but we have also received many enquiries from potential buyers from South Africa, Brazil and the Middle East,’ Jason Ham, Head of Business Development for Lucas Fox, said to Property Wire. He also added that these potential buyers would bring back the lost zeal in the market, particularly in the areas where ‘the quality of property available is high’.
Sharing the same view, Managing Director at HomeEspana Kieran Byrne said that following the introduction of the Golden Visa scheme, there has been an overall pick-up in the market and growing diversification of nationalities interested in the country’s real estate market.' ‘Statistics from the regional government of Valencia showed that in the first quarter of 2013 foreigners accounted for nearly as many property transactions in the region as Spaniards, namely 3,414 compared with 3,765, which was an unprecedented level. Also annual property sales in Valencia to foreigners surged to 15,573 in 2012 from 10,589 in 2010,’ HomeEspana reported.
Spain’s prime areas have also seen encouraging developments during the first half of this year. According to Alexander Vaughan, co-founder of Lucas Fox, the number of offers and sales completed in all areas they covered logged significant increases compared to a year ago. Knight Frank also noticed the rising popularity of prime areas to international investors. In its latest report, Knight Frank said that ‘Spain’s prime markets are attracting a broader range of international buyers who have the confidence and finance in place to purchase.’ It added that ‘buyers who previously looking into neighbouring European countries are seeing value in Spain and in particular, Balearics’.Tags: estate, market, investors, recovery, golden, visa, attract, spanish, poised, homebuyers, approval, spain’s, analysts, offshore, impetus
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