While Spain is in crisis, foreigners are in hurry to buy properties for peanuts

While Spain is in crisis, foreigners are in hurry to buy properties for peanuts

Property prices in Spain fell in the Q3 2013 by 9.3% y/y, while the number of foreign buyers has increased in the first half of the year by 13.6%, according to ee24.com citing kyero.com, noticia.ru and aplaceinthesun.com.

In the Q3 prices continued to fall. With an average reduction of 9.3%, the most affected markets were: the "internal" autonomous community of La Rioja in the north of the country, Spanish capital Madrid, the autonomous community of Castilla - La Mancha in central Spain. Real estate prices fell there by 17.8%, 14.3% and 12.5 %, respectively. The prices increase by 0.4% was only recorded on the Balearic Islands.

According to Luis de Guindos, economy minister of Spain, during the years of crisis property prices fell by 30% and probably have reached a bottom. And according to El Mundo, prices fell by 38.1% compared to the Q4 2007. Guadalajara and Toledo (over 50%), Zaragoza and Barcelona (about 50%) experienced the most serious fall.

Attracted by lower prices, foreign investors focused their attention on Spanish market. As it was recently noted in one of ee24.ru articles, most of foreign buyers in Spain comes from the UK, France and Russia. At the same time, the Spaniards buy by 89% less homes abroad than in 2007 .