Investment in the Spanish real estate sector has returned to the heights it experienced before the global financial crisis of 2008 – or at least this is what one report is suggesting. According to CBRE data, a total of €4 billion (£3.3 billion) was invested in the country’s property market over the course of 2013, a figure that is double from that recorded last year. With this growth largely attributed to increasing interest in Spanish property from international investors, the company reveals that the sector has reached pre-crash levels, a period where it had benefited from the end of a decade-long construction boom.
Indeed, Mikel Marco-Gardoqui, director of cross-border investment in Spain at CBRE, tells AFP that investment funds from the UK, France, the United States and Latin America were largely behind the increase in the number of people buying Spanish property which has been seen over the past 12 months. He states: “There is lots of floor space available, the prices are starting to rise, profitability has improved, so they are coming back to the market very actively.”
“There are dozens of investment funds from all the major countries, such as Americans, Germans and British, who are focussing on Spain,” independent property consultant Jose Luis Ruiz adds, noting that “since this summer there has been investment fever in Spain”. Mr Ruiz pointed out that while Spain still faces significant economic difficulties, it benefits from being a destination that is popular with tourists, in addition to also being attractive among those individuals who want to settle abroad permanently.
One part of the country that may prove especially popular among property investors is the Balearics – a region that consists of Ibiza,
Mallorca and Menorca, among other islands. Data from the National Statistics Institute revealed property prices in the area grew 4.4 per cent in the third quarter of 2013 compared to the same period last year, an increase that was largely attributed to burgeoning interest from overseas investors.