Foreign investment in Spain appears to be picking up, according to figures from the Spanish Property Register. Foreign Direct Investment (FDI), including investment in
Spain properties, has increased over 2010 and, in fact, investment during the first ten months of 2011 has already surpassed the entire year of 2010. FDI relates specifically to investment of at least 10 per cent or more of a company, which means that wealthy individuals and corporations see a positive outlook for the Spanish economy in the months and years ahead.
In addition, investment in new
properties in Spain by way of new construction is picking up. Construction in the hub cities like Madrid and Seville and the resort areas on the Mediterranean coast is increasing. Spain’s winter holiday industry is an ever-increasing source of revenue, and many of these construction projects aim squarely at attracting both holidaymakers and foreign investors in second homes and investment properties.
Interestingly, the direction of this foreign investment comes from some new locations. While investors from the UK and France have historically been the bulk of investors, today money is flowing in from places like the Netherlands, Russia, and even Asia. Those who have been considering
selling property in Spain should consider targeting some of these buyers in their advert. If you translate your advertising into languages like Russian, Ukrainian, Japanese and Chinese, you will find a ready group of buyers who will read your advert and evaluate your property.
Real estate activity has made up approximately 17 per cent of the FDI in Spain so far this year, showing good strength. The
Spanish real estate industry suffered through the worldwide softening last year, but as more companies have decided to invest or re-invest in the country, prices are firming up again. Sales are picking up, primarily on the Costas and in the more popular cities for tourists. However, even country properties are showing some interest, as the emerging popularity of wine tourism is bringing visitors to Spain’s renowned wine country.
Spain has much to offer, and the property sales figures for 2011 show a clear increase in activity. As investors know, where there is activity, there is generally some rising prices. Buyers who have been remaining on the sidelines should evaluate the statistics and decide when to make their move. Buying at or near the lowest part of the market is the easiest way to lock in future profits, and especially if you plan to buy around a tourist area, now is likely a good time to invest. The tourist areas have not softened as much as other areas of Spain, and they will likely be the first to turn around, meaning your window of opportunity will be smaller than in other areas.
Seasoned investors will crunch the numbers and conclude that investment in Spanish real estate is picking up. To minimise the up-front cost and maximise the potential for profit, now is looking like a very good time to make a move and invest.