As a result of the economic crisis, Spain’s luxury property market is attracting wealthy foreign buyers on the lookout for quality homes that are being sold at a discount of almost 20 percent.
Aside from its climate, foreign buyers are especially drawn to the country following a change in government policy that allows investors to apply for residence permits provided they purchase property worth at least €500,000 (S$840,400), media reports said.
Ignacio Fiter of luxury real estate firm Engel & Völkers said close to 85 percent of the buyers, majority of whom are foreigners; pay in cash while the remaining 15 percent take out mortgages for tax reasons.
The majority of sales took place in the Mediterranean islands of Ibiza and Mallorca, as well as Puerto Banus on the Costa del Sol in southwest Spain.
Approximately 80 percent of buyers are foreigners, as Spaniards have turned cautious or are still coping with the impact of the economic downturn, said Jordi Puig of property consultancy CBRE.
Knight Frank also revealed that the country’s property market saw strong interest from buyers hailing from the US, Venezuela, Colombia and Mexico.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
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