Available Options – Spain
“Spain and the Czech Republic remain the most popular countries in terms of real estate acquisition. These countries offer good opportunities for conservative investors who value low-risk projects and are prepared for relatively low – but at the same time reliable – returns. At a minimum, participation in such projects will help preserve capital, even if it does not increase too much” N. Zavalishina notes.
According to the Ministry of Housing, over the past 12 months, the number of real estate sold in Spain fell by 25% compared with the previous 12 months, and nominal prices fell by 4.6%. At the same time, this decrease mainly occurred in the 1st and 2nd quarter of 2008, i.e. at the moment it is not progressing. The Spanish Government announced a number of measures designed to support developers and revitalize the country’s housing market. All this makes investment in real estate in Spain promising and profitable right now. According to Natalia Zavalishina, “the favorable period for purchases will last no more than six months, so for those who plan to have their own real estate in Spain, we recommend that you start looking for an object now, and to do this is quite realistic with the help of a loan.”
Traditionally, it is Spanish banks that are most loyal to non-residents when issuing mortgages. Today, you can get a loan in the amount of 50% — 70% of the appraised value of real estate, at 5.5% – 6.5% per annum.
Bolt Property Group, a luxury villa construction company in Spain, has announced that the number of requests from Russian customers has increased dramatically.
“Just last week, I had negotiations with a client from Moscow, who had an unlimited budget. There are many places in Spain that can offer decent infrastructure, a high level of security and a favorable climate 365 days a year” said Hadley Bolt, president of the company.
Recently in Spain demand on the dwelling sharply grows. Great interest manifest foreigners, and especially to the coast. Moreover is expected demand both for the houses and for the apartments. Very rapidly goes upward mortgage. Government encourages the purchase of real estate, but not lease.
The sector of building is developed very rapidly: first dispatch Madrid, Barcelona, Sevilla, now the matter reached the regions. Coastal building especially actively is conducted. After are lately built 640 thousand houses, and only in this year — 70 thousand. But branch yet was not formed. Continues the process of confluences, absorptions — formation.
Problem: the interest rates on the credits. Spaniards calculated: if rate grows by 1%, then the cost of house will grow already by 1,6% in year. Among the Spanish population the purchasing power now is reduced, tsentrobank by these is strongly perturbed.