Brits’ interest in Spanish property hots up
According to overseas mortgage specialists, Conti, Spain accounted for 44% of all enquiries compared to 37% for France.
The report said buyers are being attracted to Spanish properties by the cheap and easy access from the UK, good rental opportunities and the warm climate.
Swiss bank UBS predicted that Spanish properties have another 8% to go before bottoming out.
According to data from the General Council of Notaries, the number of foreign and non-resident buyers of Spanish property increased by 28.4% last year compared with 2011, with Brits making up the biggest buying group.
Clare Nessling, director at Conti, said: “There’s no denying that the country’s financial and economic woes have left a huge glut of new and repossessed properties sitting empty and struggling to sell, but some bargain basement prices are turning heads, particularly those of the British, and there may never be a better time to buy a Spanish home.
“Mortgage availability, unsurprisingly, isn’t as good as it was a few years ago, but there are still lots of opportunities, especially if you have a healthy deposit to put down. It’s generally possible to borrow up to around 65-70% of the value of the property, and rates currently start from just 3.2%.”
Conti said that efforts being made by regional estate agents and tourism boards to improve Spain’s tarnished image are leading to high hopes that increased foreign investment will eventually help to revive the country’s property market.
The market is expected to be bolstered when a new law granting automatic residency to non-EU nationals buying property worth at least €500,000 is passed.
Five top tips for buying in Spain
Obtain an Approval in Principle
Consider exchange rate fluctuations
New build properties
Factor in additional costs
Seek professional advice