Published: 14th May 2overseas property sales hit three year high
Figures from the Bank of Spain and Taylor Wimpey Espana provide proof, if any was needed, that international property markets behave differently to their domestic counterparts.
Doom and gloom is difficult to avoid when reading reports that mention the Spanish economy, unemployment or the banking/property sectors. Yet there are pockets of good news for our industry.
According to the Bank of Spain, foreigners invested 4748 million euros in Spanish property in 2011, up 27% on 2010.
It was the second consecutive annual rise and the highest yearly rise since the boom. According to the banks figures foreign investment was above 2006 levels which stood at 4716 million euros.
The announcement corresponds with figures published by Taylor Wimpey Espana which show their sales figures are up 21% in Q1 compared to the same period last year.
Comment
The Bank of Spain’s numbers do no show the break down of private and institutional property purchases. It is likely that the 2011 figures reflect higher volume purchases by funds and institutional investors. Private overseas property purchase in Spain is unlikely to match 2006 levels. However, anecdotal evidence from Taylor Wimpey Espana suggests there are areas with international appeal like Mallorca that are bucking the downward national trends.
Spain will always have great appeal to foreign property buyers. However, one suspects that demand is now limited to completed properties in internationally-branded locations.
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