Real estate values in Spain have increased by around 1% and the percentage of overseas buyers has risen to a record 13.03%, according to the Association of Registrars

Spanish house prices are rising for the first time in six years – just as the ratio of purchases by overseas property buyers hits a new record, new figures show.

Prices rose 0.97% year-on-year in the second quarter of 2014 and were up 1.53% from the previous quarter, according to the El Índice de Precio de la Vivienda de Ventas Repetidas( IPVVR) price index from in the Estadística Registral Inmobiliaria, from the Association of Registrars.

A high of 13.03% of home purchases recorded in Spain were made by foreigners, led by UK buyers at 15.77%, followed by the French (10.11%), Russians (8.08%), Germans (7.53%), Belgians (7.26%) and Swedish (5.93%).

But house sales fell by 5.49% over the previous quarter to 78,464, although it was significantly above the record Quarter 4, 2013, low of 72,560 purchases. This was due to an 18.89% quarterly fall in the number of new homes bought, which totalled 30,605 purchases (39.01% of total).

Andalusia had highest number of recorded purchases (15,583), followed by Catalonia (11,980), Comunidad Valenciana (11,591) and Madrid (10,522).

Separate figures from the Spanish Real Estate property website show that overseas property purchases on the Spanish coast last year were led by Russians who spent close to double the average spend.

The average value of property bought by the foreigners in the Alicante and the Costa Brava regions in 2013 was €381,000, according to Spanish Real Estate

But Russians spent an average of €678,422, followed by the Germans (€ 338,716), Belgians (€ 346,728), British (€ 190,633) and French (€ 171,644).

Beatriz Toribio, from the research department at Spanish Real Estate, says,  ”The home purchases by foreigners has become one of the main drivers of the Spanish property market.

“They are attracted by our good living conditions and the great opportunities offered by the sector, as housing has devalued by 41% from the highs reached in 2008. This percentage rises to 53% in many areas of the Spanish coast, the main attraction of foreigners who want to buy homes in our country.

“British and French nationalities are still leading the ranking of purchases by foreigners, but those who spend more money on the coast are Russian citizens, followed by the Germans.”

Most of the purchases were made in Alicante, Málaga, Santa Cruz de Tenerife, Islas and Girona. Russians and British buyers favour the Alicante coast, but there housing preferences are different.

Russians invest an average of €678,424 mainly in exclusive and upscale homes, including large flats, townhouses or detached houses, with an average of 462 square metres. Russians also bought prime detached villas and terraced homes in Costa Brava, spending an even higher average of €718,771 on  average home of 398 square metres.

Britons, however, spend a much lower average of €190,633 on Alicante apartments, flats or small terraced houses of 138 square meters.

Belgians prefer the  coastal areas of Malaga, Canaries and Murcia, with half Belgian investing €414,087 on homes of 252 square metres on average on the Malaga coast, €334,749 on 241 square metre properties in the Canary Islands and  €291,348 on 233 square metre homes on the Murcia Coast.

Germans target the Balearic and Canary Islands and spend an average of € 338,715 on detached and terraced houses. In the Balearics, they spend €342,682 on houses 188 square metre homes and in the Canary Islands they spend €334,749 on an average 241 square metre property.

The French mainly buy smaller 83 square metre homes, most of them apartments, in Catalonia, especially in the Costa Brava, for €171,644. Usually, the French bought smaller than other nationalities homes.

A very small percentage of French buyers were attracted by the luxury homes of the Catalan coast and spent on average € 793,000 on 385 square metre properties.

The Spanish Real Estate website has seen a 21% rise in searches for luxury homes worth more than €500,000 that qualify for the ‘Golden Visa’ property-for-residency scheme for non-European Union citizens. Madrid led the search areas, followed by Catalonia, Andalusia, the Balearic Islands, the Basque Country and Valencia.

By Adrian Bishop, Editor, OPP Connect
Twitter: @oppnews