Foreign investments in real estate in Spain

Spain: An Attractive Destination for Russian Investors

Spain is one of the most popular destinations for Russian investors. In 2013, more than 6.45 billion euros were invested in real estate in this country. The interest in purchasing property in Spain among Russian citizens is constantly growing, and in 2013, this figure increased by 6.6%. At the same time, Russians rank third in terms of transaction volume, following the British and the French. The General Council of Notaries of Spain reports that foreigners, among whom 8.2% are Russians, purchased 55,187 homes and apartments in the country, indicating that our compatriots have significantly increased their investments in Spanish real estate over the past five years.

Popular resort areas and offers

Popular among Russian investors are resort areas such as Costa Blanca, Costa del Sol, Catalonia, the Canary Islands, and the Balearic Islands.

Attractive offers

In Spain, Russian investors find a number of attractive offers:

• A five-room apartment just 20 meters from the sea in Vilanova i la Geltrú, Barcelona, with a total area of 171 m², priced at €540,000.
• A new five-room penthouse in the center of Eixample, Barcelona, with a total area of 175 m² is priced at €1,796,000.
• Exclusive new apartment in Les Corts, Barcelona with a total area of 58 m² for 320,000 €.
• Apartments with a guaranteed income of 4% in Eixample, Barcelona, with a total area of 90 m², priced at €800,000.
• New apartment with a balcony and parking space in Barcelona, measuring 102 m², priced at €480,000.
• One bedroom apartment with terrace in a new development with swimming pool in Barcelona of 45 m² for sale for €397,000.
• A three-room apartment in a modern residential complex with an area of 103 m² for the price of €575,000.
• Furnished apartments in a residence with a pool in the historic center of Barcelona, covering an area of 87 m², are priced at €595,000.

Why is the Spanish coast attractive for Russian investors?

When purchasing real estate in Spain, Russian investors prefer the coast, as it provides access to shops, restaurants, entertainment venues, and cultural events.

Real Estate in Spain: A New Rise

From 2011 to 2014, there was a significant increase in demand for housing in the Spanish real estate market, primarily from Russia. Real estate in Valencia was particularly popular, accounting for 62% of all applications. There was also noticeable demand for properties in Andalusia (9%) and Catalonia (1.60%). However, the Canary Islands and the Balearic Islands ranked last in popularity among buyers.

Costa Blanca: A Favorite Place for Russians

Foreigners, including Russians, are particularly attracted to the Costa Blanca region, which is administratively part of Valencia. This region is known for its favorable climate, with an average winter temperature of +17 °C, as well as its developed infrastructure, including ports, golf clubs, shopping centers, universities, and schools. Costa Blanca is famous for its beautiful beaches, many of which have been awarded the "Blue Flag".

Diversity of Buyers and Objects

Interestingly, the owners of real estate on the Costa Blanca are mainly British citizens, Norwegians and, of course, Russians. Russians occupy the second place in the number of purchased real estate on this coast, while investing more money in their properties. Particularly popular among buyers of real estate on the Costa Blanca is the province of Alicante, where the most sought-after cities among tourists are located.

The difference in housing prices between Costa Blanca and Costa del Sol

The cost of apartments on the Costa Blanca and Costa del Sol is influenced by the geography and nature of the regions, the standard of living, and the quality of construction, notes expert Natalia Bugaychuk. High-rise buildings are popular on the Costa Blanca, while detached houses with sea views dominate on the Costa del Sol. This affects the difference in property prices.

Foreign buyers on the Costa del Sol

Approximately 80% of real estate transactions in Costa del Sol are made by foreigners, among whom there is a significant number of Russian citizens. According to Mary Dunn, Russian clients rank third among the most active buyers in this region, drawn by the favorable location and affordable property prices.

Popular attractions on the Costa del Sol

Apartments in gated complexes within walking distance of the beach are the most popular choice, ranging from around €300,000 to €700,000. Villas are located in areas with convenient infrastructure and beaches, with prices ranging from €1,000,000 to €5,000,000.

The popular resort of Marbella

Marbella is a trendy resort that attracts visitors with its convenient location, mild climate, and diverse infrastructure, making it suitable for both permanent living and vacations.

Interest of Russian citizens in real estate

Russian citizens are attracted by affordable housing prices; in some coastal areas, the cost of housing has dropped by 60% compared to 2007.

Russian tourists in Catalonia

The interest of Russians in Catalonia is increasing, and 60% of Russian tourists coming to Spain pass through this region, mainly through Barcelona.

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Conclusion

In recent years, Spain has become one of the most popular places for real estate investment. According to the Bank of Spain, investments in Spanish real estate have reached a nine-year high, exceeding 6.45 billion euros. Russians make up a significant portion of buyers acquiring residential properties in the country. Over the past five years, the share of Russian buyers has increased almost fourfold, indicating a growing interest in living in Spain.

Costa Blanca is one of the most popular places to buy property, especially among people from the UK, Russia, and Norway. The province of Alicante is the most sought after by buyers. The clean sea, favorable climate, developed infrastructure, and affordable real estate prices make Costa Blanca an attractive location for purchasing a home for vacation or permanent residence.