Property investment from abroad increases
May 9, 2012 2 Comments
Spain saw a 27% increase in property investment from foreigners in 2011 rising to 4,748 million euros, compared to the previous year. Meanwhile, Spanish investment abroad saw a decrease of 23.4%.
The Bank of Spain say this is the first time investment in Spanish property from abroad has exceeded 4,000 million euros for three years. It is also the largest single increase since the property bubble burst.
The results are similar to 2006 when the total property investment from foreigners stood at 4,716 million euros.
Despite these encouraging figures being much higher than those achieved in 2009 and 2010, investment is still some way off the amounts reached in 2007 and 2008, when foreign investment exceeded 5,300 million euros.
However, the 23.4% decline in the amount spent by Spanish investors abroad is now a staggering 81% below the peak of 2007. In 2011 Spanish investors put 618 million euros into foreign property, compared to 807 million in 2010.
High unemployment, economic uncertainty and low incomes are among the reasons cited for the drop in Spanish investment.