Foreign investments are drifting out from Spanish coasts

Foreign investments are drifting out from Spanish coasts

Although famous Spanish coasts still remain number one destination for most foreign buyers, there is a tendency to turn towards to the big cities, where the conditions for better deals are better, and rents are higher, writes ee24.com citing spanishpropertyinsight.com.

In good areas of Madrid around 15% of the transactions are being made with foreigners, and not only with individuals but also with institutional investors which are buying up entire residential neighborhoods. Popular areas are Salamanca, Jeronimos, Justicia. A similar situation is observed in Barcelona. Interest is high primarily due to the price policy: in recent years housing in Spanish cities has become cheaper by about 40%.

Large cities provide very different opportunities than coastal resorts. There were no construction booms in big cities, and the lack of supply leads to higher prices. Natalia Lazenkova, CEO of the Catalan Agency EHR, told ee24.com, that the liquidity of property in Barcelona was due to the lack of free spots for construction. Number of houses in the resorts of Spain, by contrast, is increasing, but prices are rising only in the most prestigious places such as Ibiza or Marbella.