According to information of the Bank of Spain, foreigners have invested €1.7 billion in Spanish real estate in the second quarter of 2013. It is 53.7% more than in the first quarter of this year and 32.9% more than in the the second quarter of 2012, according to ee24.com citing kyero.com.
It means that real estate sales to foreigners showed a significant increase compared to the fall that lasted two previous quarters. This is a good omen for the market, considering the fact that in the end of 2012 sales grew thanks to expectations of VAT rates increasing since January 1, 2013.
Compared with the first half of 2012, when investors expected for default of Spanish economy and did not rush to buy real estate, growth of 30% is a very good result.
Development Minister assured the public that "the demand from foreigners is crucial for reforms and recovery in this sector". Government issued a law on opportunity to obtain a residence permit in Spain for a non-residents when they buy a housing of at least €500,000.
Foreign investment in Spanish real estate decreased from €7 billion in 2003 to €6,7 billion in 2004, €5,5 billion in 2005 and €4,7 billion in 2006. This trend was broken in 2007, when foreign investors have invested €5,3 billion.
By the end of 2008, direct foreign investment in the Spanish market reached €5,33 billion, only 1% more than year before. However, in 2009 the crisis has reduced investments by 31.4% to €3,6 billion. In 2010 investments increased only by 4.5% to €3,8 billion.
At the same time, the analytical center La Caixa Research predicts a stabilization of prices in Spanish property market. Specialists say nowadays real estate is overvalued by 5%. This means that price reduction could be stopped in 2015.