After the pandemic, the drop in sales and purchases of real estate by foreigners became an obvious fact, nevertheless, the sector is recovering, but is foreign investment recovering?
According to data for 2021, investments in Spain from foreigners are growing. This group is betting on housing contracts with mortgages from banks, with hidden costs that penalize ROI.
Representatives of Klev & Vera International Law Firm say foreign investors continue to gamble on the Spanish market through residential real estate investments and support investors with a statement of hidden costs incurred by international investors.
Major investment in luxury real estate in Madrid
Investments from foreign buyers have also survived in the elite real estate market. In the first half of 2021, foreign buyers accounted for 30% of purchases in the luxury real estate sector in Madrid. However, both their profile and the supply profile are very heterogeneous.
By the end of 2021, more than 30% of buyers of luxury houses in Madrid are expected to be large investment portfolios. Thus, the capital is the leading Spanish destination for buyers from the USA, Latin America and Asia.
This is stated in the report of the Barnes company “Global Property Handbook 2021”, which clarifies that investment or second houses are the main preferences of international businessmen. “89% of luxury property buyers believe they will spend more time during the year in their second house, while 72% believe they will alternate between their first and second homes equally.”