Malaga and Alicante attracted nearly half of purchases by foreign residents

The sale of homes totalled 70,196 operations in the third quarter, 6.8% less than in the same period of 2012 according to the Ministry of Development, showing that home ownership by foreigners grew by 24 7% to 10,960 transactions, 15.6 % of the total. Home sales fell as in respect to the second quarter when they decreased by 4.2%, although away from the crash this suffered 21.5% in the first three months of the year .

However the data from Formento shows in the last twelve months between October 2012 and September 2013 sales transactions were 341,104, which is  1.4% more than in the previous twelve months. Alicante and Malaga distributed nearly half of purchases by foreign residentes, 13,918 transactions were for new housing which is 19.8% of the total, while the resale market totalled 56,278 , 80.2 %.

In the case of private housing, operations amounted to 66,477 between July and September this year, 94.7% of the total, while 5.3% or 3,179 transactions were for housing.

marbella
Half of foreign property buyers purchase in areas like Marbella in Malaga and Alicante

By region in the last 12 months nine of them have had increased sales, while the remaining eight and the autonomous cities of Ceuta and Melilla have produced falls in property sales. Notable increases were in Murcia ( +14.3 % ), Aragon (+9.4 %) and Catalonia ( +7.6 %) , compared with declines of Cantabria ( -17.3 %) , Basque Country (- 15.3%) and Castilla -La Mancha (-14.6 % ), respectively. The purchases made by foreign residents in Spain experienced an annual growth of 24.7 % over the third quarter of 2012 , with 10,960 operations.

Together, the purchases made by foreign – resident and non – residents accounted for 12,070 transactions , 17.2% of the total , which is a record since 2006. By provinces of which recorded the highest number of sales by foreign residents accounted for Alicante ( 3,158 operations ), Malaga ( 1552 ), Barcelona ( 889 ) , Girona ( 758 ) and Tenerife ( 705) . Only foreign demand activity in the housing market ” remains in the doldrums .” According to Beatriz Toribio of Fotocasa, “now they’re again buying property in Spain foreign investors are seeking good opportunities in this time of low prices “. ” May we continue in positive figures, the pull of foreign demand is good because it came from many years of sluggishness ,” but ” should not lead to euphoria because the sector will recover only thanks to foreign demand,” says Toribio.

 

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