With high inflation, we are seeing our purchasing power decline sharply. Interest rates on savings books are falling well short of keeping up with increased longevity. Therefore, savers are looking for alternatives for their savings capital. Spanish real estate seems to be an option.
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Spanish real estate continues to appeal to foreign investors and savers. Figures from the General Council of Notaries in Spain, also known as Consejo General del Notariado, show that in the second half of 2021, the number of foreigners who bought a Spanish home increased 41.9 percent year-on-year.
Over 5,800 homes bought by Belgians
A total of 117,743 Spanish homes were purchased by foreigners last year, including 63,934 in the second and 47,809 in the first half of the year. The report by the General Council of Notaries shows that Belgians bought a total of 5,864 homes in Spain in 2021. The majority of those homes (3,543) were purchased in the second half of the year. That is an increase of 31 percent compared to the second half of 2020.
For Carl Vorsselmans of New Construction in Spain, a broker specializing in Spanish real estate, it comes as no surprise that Spanish real estate continues to be so popular with foreigners. "We should not forget that interest rates are still relatively low. That coupled with high inflation makes many people opt for a safe investment," he informs our editors. "In addition, you get more property for the same budget than at home. The good weather and cheaper living (40 percent cheaper on average) just come with it, by the way."
Residential real estate
Vorsselmans adds that foreign property buyers are mainly interested in residential property as a second residence. "Foreigners pay 2,481 euros per square meter when they buy real estate. Spanish residents pay an average of 1,567 euros per square meter," he clarifies.
Belgians spent an average of 2,060 euros per square meter in the second half of 2021. Swedes (2,752 euros per square meter), Danes (2,750 euros per square meter) and Germans (2,741 euros per square meter) then put the most money on the table for a home in the southern country.
Source: Niels Saelens - Business AM