Residency Spain

Where can we find properties for sale?

Regions where there are a higher number of new unsold properties are: Comunidad Valenciana, in particular, 139.279 properties (20,6% of the total excess), followed by Andalucía, 107.138(15,8%)and Catalonia, 102.814 (15.2%). These three regions are the places where there is a higher number of offer, but also where it could be a higher demand from non-resident buyers.
In fact, foreign investor's profile is especially interested in holiday destinations placed along the Spanish Mediterranean Sea and Islands. Purchases made by non-residents are located in Andalucía (29,4%), Comunidad Valenciana(27,6%), Catalonia (14,4%), Baleares(12,3%), Canary Islands(12%), and Murcia(2,9%). The rest of the regions do not exceed even a 1% of purchases, according to the information provided by the General Board of Notaries in relation to the first semester of the year.
In this sense, it seems that this measure would be ,however, less outstanding in regions such as Castilla-La Mancha with 7,8% of stock, Castilla y León (6%) or even Madrid (6,7%) because of the lack of foreigners' interest in these regions.
One of the positive aspects would be that foreigners are showing an increasing interest in Spain. Similarly and compared to the sharp fall on the purchase of properties, the number of properties acquired by non-resident foreigners until June of this year has considerably increased to 15.806 properties, 10.8% more than in 2011, resulted in a increased sales volume of 17,6%.
If we compare figures to nationalities, we will notice that the main property buyers in Spain are British citizens, 13, 7% of the total amount, followed by French (8,4%). However, among non-European buyers, the top position goes to Russians (8%), Norwegians (4,8%), and Chinese (4,2%). The measure that the Government is evaluating is aimed at these markets.

The Secretary of State for Trade, Jaime García-Legaz, announced that the president has evaluated a change the Spanish Foreign Law in order to grant permit of residence to those who buy a property in Spain, ascending the amount of 500.000 euro. It is expected that the first wave of applicants will be able to take advantage of the new laws as soon as summer 2013.

García-Legaz explained that this initiative is specially focused on Russian and Chinese market, and that the measure will be implemented in "a few weeks" with the aim of reactivating foreign demand and reducing "the number of properties for sale".
Up to now, the register of inhabitants show that Chinese and Russian citizens living in Spain accounts for only 4, 1% of the total number of foreigners. However, this rate may be increased if the Government measure is approved.
The presence of both Chinese and Russians is not very spread out. According to the Statistics National Institute on 1st January, in Spain we count on: 175.813 Chinese and 57.275 Russian citizens. Their geographical distribution is very different: Russians prefer coast areas, while Chinese prefer big cities.
In addition, their property's investor profile is also very different. Russian citizens currently living in Spain could adjust to the profile that Government is looking for; however, this might not be the case regarding Chinese residents.
Russian citizens, for instance, bought a total number of 1645 properties in Spain in 2011, that is to say 7, 86% of the properties bought by foreigners, with mainly touristic purposes.
They ranked fourth in number of property purchases made by foreigners, only under United Kingdom, France and Germany. Besides, more than a half of the properties acquired by Russians, 5, 6% to be more precise, were new and most of them exceeded 100 square meters.
On the contrary, the Chinese's profile refers to a citizen who arrives in Spain for working purposes and ranks first among foreigners who invest in real estate Spanish market for such purpose.
According to the Spanish Professional Association of Property and Registrars in 2011, most of the properties (68%) acquired by Chinese citizens are second hand and have an area of 60 to 80 square meters.
In addition, Chinese citizens together with Romanians and Argentineans are leading foreign nationalities with a stronger presence concerning the purchase of smaller properties(less than 40 square meters).
Chinese community accounts for 3, 1% of 5,7 million of foreigners, who are registered in Spain. However, they represent the community that has experienced a higher growth in one year's time (5,2%), only exceeded by the Pakistani's community(13,5%).
Russians barely accounts for 1% of the total amount of foreigners living in Spain, meaning 57.275 of registered citizens with almost a zero-growth.
Russian citizens are mainly located in Costa Brava( Catalonia), where there are 17.517 registrations, in Costa de Levante( Comunidad Valenciana) 14.314 registrations , and Costa del Sol which counts on 11.445 registrations.
The rest of Russian citizens are spread across the country, but at a smaller rate: Madrid (4.111), Canary Islands (2.239), Baleares (1.417) or Murcia (1.379).
The distribution of Chinese people living in Spain is not so much located in Spanish Coasts but regions such as: Catalonia (49.290), Madrid (46.032), followed a long way behind by Comunidad Valenciana(19.344), Andalucia (17.789)and Canary Islands( 8.406).
Recent data from the Ministry of Labour and Social Security concerning June of this year show that not all Chinese and Russian citizens who are registered in Spain hold a registration certificate, or a valid residence card.
In this sense, among 175.813 of Chinese registered citizens, 174.585 hold a registration certificate or residence card, whereas among 57.275 of Russian registered citizens, only 40.386 hold one of the aforementioned documents.

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