Property price increases in Spain for Q3

Property prices across a number of regions in Spain have seen an increase of up to nearly five per cent in the third quarter of 2013, compared to the same period last year.

The Spanish Ministry of Development released a statement which highlighted that the highly popular Balearic Islands experienced the largest price increase, at 4.8 per cent. The region boasts an excellent tourism record and this in turn reflects on the amount of foreigners that look to permanently settle here, with Germans particularly having a fondness for the island.

In August, Taylor Wimpey Espana revealed that they had witnessed an increase in the average asking price of property across the whole of Spain by nearly three per cent, rising to €252,500 from €245,200.

Things are far from rosy in terms of where the Spanish property market was at before the property crisis of 2008, and there is still some way to go until they are as good as that, but increasing signs are showing that at least some confidence is returning to the country’s property sector.

Madrid, which experienced an increase in property price of 0.3 per cent, and Navarre and Extremadura were the other notable regions which also had an increase in prices.

Spain has still got overseas buyers to thank for rescuing the property market, as they continue to snap up properties across the popular tourist regions. For many Spaniards, still facing unemployment and austerity, they just don’t have the money at the moment to be investing in property; thus leaving the door open for foreigners.

The ‘Golden Visa’ – enabling residency for any non-EU national who invests €500,000 or more in Spanish property – introduced by the Spanish government in October also seems to be having the desired effect, with a 2,500 per cent increase in the number of Middle Eastern buyers showing an interest in Spanish property this year compared to 2012.

The visa was introduced as Spain increasingly wishes to target wealthy Chinese, Middle Eastern and American buyers – among others.

Image courtesy of: Kasiber at http://en.m.wikipedia.org

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