PROPERTY sales to foreigners in Spain experienced an increase of 24.7% in the third quarter of 2011 compared to the same period last year, according to statistics from the Ministry of Public Transactions.(source Olive Press )
The provinces with the greatest number of property purchases by foreigners were Alicante (2097), Malaga (951), Barcelona (607), Balearics (516) and Santa Cruz in Tenerife (476).
The hunger for Spanish property looks set to continue with tax breaks and low interest rates on savings accounts among the factors encouraging buyers to hunt down bargains.

Earlier news from 2 quarter 2011
The Spanish goverment announce 22% rise in Spanish Property sales in the 2nd quarter of 2011 – 90746 Properties sold in all Of Spain.

Malaga was the leader with sales to foreigners, 1110 sales took place in the 2nd quarter Of 2011.Costa del Sol is Europes Number 1 holiday destination. Marbella is Costa del Sol most exclusive area and many Luxury Homes where sold at large discounts.

Read an earlier article underneath:

International buyers cause a rise in property sales and their enquiries for information increase by 43%

Published in diariosur.es on 04.04.2011 – ALMUDENA NOGUÉS | MÁLAGA

It will still be some time before the property market recovers from the bursting of the real estate bubble. But the good news is that a light is visible at the end of the tunnel. Developers and realtors are pinning their hopes on foreigners, who are attracted by the substantial drop in property prices in the province (in many cases of over 30%). For British, German, Scandinavian and Russian citizens, the crisis has died down and they are once again turning their attention to Málaga, and more especially the Costa del Sol, with Marbella as the main attraction.

Click to read about bargains with up to 70% Discounts in South of Spain

So say industry experts, and their statements are backed by figures. According to the latest report by the Public Works Ministry, 6,457 property sales were conducted in Málaga in the last quarter of 2010, with foreigners accounting for 905 of the transactions (14%). Not only was this the second-best figure in Spain after Alicante province, but it also represented a 31% increase in sales from the previous quarter.

FACTS & FIGURES

3.368 homes in the province were acquired by foreigners in 2010, 8% more than in 2009.

233.963 euros is the average price paid for properties purchased by foreigners, who continue to show a preference for Marbella.

Marbella captured 30% of the total number of property purchases made in the province.

But there is more. An analysis of annual transactions clearly shows that foreigners are driving growth in the province, where 22,442 homes were sold in 2010, compared with 22,224 in 2009. If foreigner buyers were subtracted from the total, the balance would be negative (-0.15%), reflecting 19,103 housing units sold in 2009 and 19,074 in 2010.

The future looks good
Considering these results, it comes as no surprise to learn that the property sector is focusing on international buyers, since forecasts say they are the ones who will bolster the residential market, where the future seems more hopeful. Ignacio Osle, Sales Director for Taylor Wimpey España (a British developer specializing in holiday homes for foreigners) is confident that this community will be instrumental in initiating the recovery of the real estate market. “It will be a slow but sustained recovery,” he notes. “2011 began with good prospects: in the first quarter alone, requests for information by foreigners shot up 43% at our Benahavís office, which proves that change is underway,” adds Osle.

And he underlines another significant fact: “Three years ago, we had around 130 available homes, and as of now we only have one. That proves these buyers’ potential for absorbing the excess inventory,” says this expert, emphasizing the emerging demand by Scandinavian, Dutch, Belgian and Russian buyers, who are mainly interested in the area around the Golden Mile, which is still the “Jewel in the Crown”.

For Ángel Yagüe, Coordinator of the Andalusian Institute of Financial Studies, the key to this strong foreign demand lies in a significant price adjustment, “which is especially attractive to citizens from countries that are coming out of the recession and who realize that this is a great time to buy.” In his opinion, the international buyer is the only hope for the property market. “Domestic demand is very weakened by the high unemployment rate, an economic situation that is not getting better and growing restrictions to access bank financing.”

As for the average foreign buyer, José Prado, President of the Association of Building Contractors and Developers, says the typical profile is: self-employed people around 55 years of age who have been to the Costa del Sol on at least three different occasions, and who are already retired or in early retirement. Figures released by the Public Works Ministry complete the picture: most of these buyers opt for resale homes (731 out of the 905 sold to this group by the end of 2010) and pay an average price of €233,963.

Prado agrees that foreign buyers will be the driving force behind the recovery of the residential market, especially the German and British. But, he notes, the stigma of legal insecurity still has to be overcome because “it has created a significant lack of confidence,” in reference to the risk of demolition of illegally built homes. “Fortunately, none have been demolished, and the homes are being legalized, which is helping restore the province’s image,” he adds.

Juan Antonio Pérez, who holds the Real Estate Chair at the business school Instituto de Práctica Empresarial (IPE), celebrates the fact that foreigners still prefer the Costa del Sol «because of its strong brand image, its climate and the attraction of Marbella». The problem, he warns, lies in financing, “because when they ask for loans, many of them run into obstacles set up by the banks. Still, all sights are set on these buyers.”
Marbella captures 30% of the total number of homes sold in the province

MARBELLA. “Tall, European, a liberal professional who enjoys a mid-to-high standard of living, and who speaks with a German or British accent” – This, according to the experts interviewed by this newspaper, is the typical profile of the average foreigner who invests in Marbella – the city that captured 30% of the total number of property sales to foreigners in Málaga province in the last quarter of 2010, which saw 905 homes sold to this sector of the buyer market. The president of the Association of Building Contractors and Developers, José Prado, underlined that the new zoning plan helped the city overcome the stigma of legal insecurity and the fear of demolition of illegal homes, demand increased once more. “Marbella shines with a light of its own,” he says.

Click to read about bargains with up to 70% Discounts in South of Spain

Best Regards-M.f.g-Saludos-v.h

Stefan Katafai
President@Agent4Stars.com
+34 637 97 37 42

http://www.Agent4stars.com