Categorized | International

Spanish Government Seeks Foreign Property Investors

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While some nations have enacted measures that have made property investment by foreigners nearly impossible, others have done everything they can to invite foreign buyers to purchase real estate in their country. Spain is the latest country to realize that foreign buyers can help boost the performance of the residential real estate market in their country.

As a result, Spain’s government has ordered a study to determine the best and most effective ways to sell properties to foreign investors. Certain areas of Spain are particularly attractive to foreign investors, such as Valencia and Alicante. In Alicante, eighty-five percent of residential real estate sales are to foreign investors.

The Spanish government hopes that by boosting sales to foreign investors, residential real estate values will increase due to the rise in overall demand. According to various reports published throughout the year, it does appear that investment by international buyers has been increasing in Spain, though the Spanish government is looking for foreign investors to make up a greater percentage of homeowners in the nation.

Real estate investing experts that are advising the Spanish government have called for tax breaks and low interest rates so as to encourage international investors to buy property in Spain.

Residential property prices experienced a steep fall in 2011, and will likely continue their descent into 2012. As such, the Spanish government believes foreign investors in the residential real estate market are more important than ever. However, for foreign investors to make an impact, the Spanish banks must play a role by properly adjusting prices and reconsidering loan rates.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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