Foreign Investment in Spanish Brick and Mortar

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The  Foreign Investment in Spanish Brick and Mortar reached a third in 2015: 7,700 million Euros
At this point no one can doubt that the Spanish real estate sector is on the radar of foreign capital. But in view of the latest official figures we could say without fear of contradiction, that the appetite of international investors for the brick is fierce.

According to the Ministry of Economy , construction and real estate activities captured 7,698 million in foreign direct investment in 2015, representing more than one third of the volume of foreign capital received the whole of our economy during that year.

Of the 21,724 million raised in total productive investment (the fifth best figure of this century), an 21.7% went to stop the construction of residential buildings and property development (both factors come within the construction sector), while another 13.8% was directly linked to the sale and rental of real estate own account (part of the real estate activities).

Therefore, all activities linked to the brick represented 35.5% of the total, compared with 15.6% reaching all manufacturing (captured 3,384 million in foreign direct investment), which gathered 10.1% the supply of electricity (2.195 million), 11% of the wholesale and retail trade (2.386 million) and 10.7% of financial and insurance activities (captured in 2015 2.326 million euros).

A growth of 8,200%

The total investment volume is not the only figure that shows the great attraction that arouses real estate between international money: the annual growth of capital raised for each subsector also put him clear.

And, according to statistics of the Ministry who still directs Luis de Guindos, the construction of residential buildings received last year 3,019 million direct euros, resulting in an increase of 8,286% compared to 2014. In that exercise this subsector just received 36 million euros in investment, almost 84 times less than in 2015.

Throughout the list of activities there is no other to record similar growth, but also highlight those achieved by accounting activities and tax consultancy (received 215 million euros, 948% more), the wholesale of beverages ( he caught 164 million, 700%) or car sales (153 million, 615% more).

If we look at the evolution of the main sectors, education leads the ranking (received 405 million, 415% more), followed by professional, scientific and technical activities (709 million, 172% more) and construction (167% more with those 4.706 million total), whose annual long rallies exceed that experienced by the total volume taken up by Spain: those 21,700 million show an increase of 11% yoy.

In the balance of the last two years, the construction scale a position in the standings and stands as the second most attractive sector with a rise in foreign investment of 216% (in 2013 captured 1,488 million according to official data, three times less than in 2015). Only education, with an increase of 664%, than the improvement experienced by brick in that period.

Madrid, great epicenter of investment

Another readings that can be extracted from the data it has collected Economics is that the Community of Madrid remains the region that captures more resources from abroad. Autonomy only in 2015 received 10,093 million euros between all economic activities, 46.5% of the total captured by the country and away from the 4,783 million attracted Catalonia, the second most prominent region in the ranking, with 22% from the total.

Basque Country, with 794 million, was the third most attractive for foreigners, followed by Andalusia (565 million), Murcia (518 million), territory Balearic Islands (263 million) and Valencia (254 million). Among these five autonomous regions they accounted for 11.1% of the investment; ie four times less than what caught Madrid alone. Cantabria , meanwhile, was the region with less foreign investment recorded a mere 9 million euros.

Where does the money come from

The merits of investments, the report recalls that the vast majority belong to OECD countries, which represent 84.9% of the total (about 18,442 million). The top five are, in this order, Luxembourg (3,584,000, 16.5% of the total), the Netherlands (12.8%, 2,777 million), France (9.9%, 2,140 million euros), United States (7.3%, 1,581 million) and the UK (6%, 1,311 million), which account for more than half of the total invested with 52.5%.

Several steps behind also find Mexico (977 million), Germany (759 million), China (586 million), Portugal (447 million), Saudi Arabia (444 million), Switzerland (437 million) and Japan (404 million) . Below 400 million are Uruguay (335 million), Liechtenstein (288 million), Bermuda (234 million), Hong Kong (216 million), Ireland (201 million), UAE (173 million) and Singapore (160 million) .

In annual terms, countries that have increased their direct investments in Spain have been Portugal (+ 228%), United Arab Emirates (+ 215%) and the Netherlands (+ 140%), while nations that have more cut its investment have been the United States (-58%), Ireland (-47%) and Singapore (-58%).

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