Foreign investment in property falls for first time
14 February 2005, MADRID-The number of foreigners buying property in Spain fell for the first time last year, the Bank of Spain said.
14 February 2005
MADRID-The number of foreigners buying property in Spain fell for the first time last year, the Bank of Spain said.
Between January and October 2004, Britons, Germans, the Dutch and other nationalities spent EUR 5.5 billion on homes in Spain.
This represented a fall of 5.7 percent compared with the same period the year before.
The Bank of Spain said it was the first time the Spanish property market had seen a drop in the level of investment by foreigners.
The foreign investment in property is key to the Spanish economy.
In the month of October last year, foreigners who were non-residents spent EUR 674 million on homes in Spain.
This represented a 39 percent fall compared with the same month in 2003.
The contrast with the past four years is remarkable, analysts said, when the investment by foreigners in Spanish property continued to rose by 150 percent.
In 1999, foreigners spent EUR 2.9 billion on homes and flats in Spain.
Four years later, by 2003, this figure had risen to EUR 7.1 billion.
The rise in house prices in Spain in recent years has been seen by analysts has the main cause in the slow-down in foreign investment.
[Copyright EFE with Expatica]
Subject: Spanish news