Spain 2013: "golden visas" haven't led to property prices increase

Spain 2013: "golden visas" haven't led to property prices increase

Starting this year, buyers of real estate in Spain valued at more than €500,000 may ask for a residence permit in the country. It's still early to make conclusions about success of this measure. Some buyers prefer property in other countries, where a residence permit can be obtained much "cheaper." Moreover, the new law has the pitfalls.

For example, the holder of Spanish residence permit has to pay taxes on his income and properties (located anywhere in the world) to the treasury of Spain. For this reason, there are already cases when wealthy Russians refuse to renew their residence permits.

Despite the authorities' attempt to attract wealthy investors to the country, throughout the year, Spanish property became cheaper. This year portal has published a lot of news about cheapening of housing in Spain. 

In 2013, the decline in prices has slightly slowed compared with previous "crisis" years. In November, the price of property in Spain has reached €1,732 per square meter, which is about €160 less then in the beginning on this year.

Portal expert opinion

Experts believe the Spanish market is entering into a period of stability and urge to acquire good properties until they go up in value.

Eduard Gulyan, managing partner of SeaBestLand:

"One and a half years ago, good properties ceased to fall in price. All good commercial properties with a guaranteed margin of 6% are being sold instantly. Property market in Spain really works. The government announced that Spain had withdrawn from the recession, and the European Union has confirmed it. But we already knew it and we felt it.

The market is different. There are huge residential developments without infrastructure in Costa Blanca, where prices continue to fall, and there is good real estate in Port Aventura, 40 minutes from Barcelona, ​​with a guaranteed income. Such properties are being sold out immediately."

Iain Tozer, CEO of SeaBestLand:

"Many realtors report that sales have reached the level of 2007. This is one of the indicators of the market. Now the market is much more active than in 2011. Speaking of predictions for the coming years, we've had 6 years of recession, and now I think we are entering in 5-6 years of stability and of a smooth price increase."​