Property investment from abroad increases

Foreign investment increased
2011 saw an increase in foreign property investment

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.

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2 thoughts on “Property investment from abroad increases

  1. It would be interesting to know the figures regarding investment abroad from Greek and Italian nationals. I know that all of these countries are experiencing economic difficulty and I suspect that this may have something to do with it. Am I right in thinking this?

    1. Hi Richard,

      Yes, I would say you are right.

      Here in Spain the second recession in two years, followed by 50 billion euros of cuts and austerity measures, has forced people to tighten their purse strings across the board and property investment can hardly be called a necessity can it? Remember, a quarter of the population (around 12 million) are unemployed at the moment so there isn’t much money to invest anywhere!

      As for the Greeks and Italians, I don’t have any figures but I imagine investment from them has all but dried up.

      Thanks for taking the time to comment.

      Andy

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