UK Spanish property Buyers Still the Biggest in Spain But for How Long?

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Well I suppose it will come as no surprise to you that UK Spanish property buyers still make up the largest percentage of an increasing international property buyers’ market in Spain. However on closer inspection the trend is considerably downwards with UK citizens currently missing out on huge opportunities.
Official figures published recently for 2011 show the British bought more property in Spain than any other foreign buyers. However those looking to buy Spanish property now cover a much more wide ranging area.
Of the 22,260 overseas purchases in 2011, only 18% were British. The number of foreign buyers was up from 4.45% of all property sales in 2010 to 6% in 2011.
Below is a selection by number of Spanish properties purchased in 2011 by nationality of the buyer
British          4007
France        1972
Germany     1702
Russia        1645
Italy              1187
Sweden       1176
Norway        1049
Belgium       1031
A close inspection of these figures makes very interesting reading. In 2008 the amount of UK buyers made up 60% of the international market with obviously the number of properties sold being much higher. Whichever way you cut it a drop from 60% to 18% is huge and a good indication why you shouldn’t rely on one particular country or sector for your business.
The issues that have affected the UK market especially is the exchange rate that from a high of 1.60€ in 2002 to a low of 1.07€ in 2008/2009 are now less of a problem with the current exchange rate as of 25 July 2012 being 127.67€ and property prices in some areas now below 2000 levels. However there is still a lack of confidence from UK buyers with the reality that other nationalities picking up the best property deals.
If one starts to look at the figures of other nationalities one can see some really interesting movements. If you add Norway, Sweden and Denmark together as one block they are the second largest block with over 12% of the overall market. Interestingly unlike the UK these buyers are increasing year on year. The same goes for the Benelux countries i.e. Holland, Belgium and Luxemburg making up some 9% of the market. Add Scandinavia and Benelux together and they are the biggest group of Spanish property buyers in 2011.
Another interesting stat is the Russian figures because in 2011 Russians became the largest single buyers in the Alicante Province. Costa Blanca having used to be the second resort for UK buyers. The other factor is these figures are by properties sold rather than the amount they were sold for so Russian buyers would figure as a higher percentage if it was based on the value of the property sales.
What this tells us and what we are very aware of at Spanish Hot properties is that the market has completely changed and an international real estate company can no longer survive on just English speaking clients alone and why we speak all the major European languages as well as Russian and most importantly have natives from those countries working within our group.
The other major fact that comes from these figures is that there was only 22260 property sales i.e. only 1855 sales per month for the whole of Spain. When you think how many international real estate companies are based in Costa del Sol, Canary Islands, Balearic Islands and Costa Blanca it’s pretty clear there isn’t a sustainable living market place for them all and at least half will have fall by the wayside or continue to struggle for a living.
If you are looking to buy Spanish property in the near future and want some advice about the market place why not visit http://www.spanishhotproperties.co.uk/  for the most up to date information or alternatively contact me directly.

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