How the Change in Residency Laws will Affect Spain’s Luxury Property Market

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Spain has confirmed the enforcement of automatic residency rights on the 1st of January 2014 to foreigners who spend €500,000 or over on property anywhere in the country. Michael Lovett, Managing Director of Fine & Country Spain, believes the law will make huge waves across the country as a genuine incentive to non-European Union buyers.

This luxury villa in Nueva Andalucía is on sale with Fine & Country Marbella

In recent years, Marbella has been a prime spot for Russian and Scandinavian investors attracted to the year round warm weather and luxury property along the Golden Mile.

Spanish residency gives buyers the ability to move freely around 25 European nations, already proving an attractive proposition to Asian, Russian and Middle Eastern buyers. Fine & Country Egypt has referred potential buyers to Marbella as a direct result of the change in law, sharing serious clients to maximise every buyers and sellers opportunity in the international property market. Fine & Country Marbella aims to report similar success to Portugal’s ‘Golden Visa’ last year, which improved their national confidence index to a 2 year high.

In recent years, Marbella has been a prime spot for Russian and Scandinavian investors attracted to the year round warm weather and luxury property along the Golden Mile. From what was a solely lifestyle driven purchase, the law adds a new stimulus to the global market place. A change of pace is expected as demand from those who might have been hesitant to buy before are now persuaded. Michael says, “We hope to see a renewed interest from Asia with market analysts predicting a €100 million property investment in Spain over the next 24 months.”

One of Marbella’s leading newspapers recently commented that eight out of every ten new residents are now foreign, registering 138 different nationalities in Marbella alone. This figure is likely to grow as the population of the town continues to increase. 2,773 have moved to Marbella since last year, and 2,246 of its total inhabitants are foreign, reflecting the strong international community with purpose built infrastructure for this audience.

Michael says, “The high level of wealth and assets in Marbella set it apart from other Spanish towns; a real magnate for savvy investors. In Nueva Andalucía especially, where there is the biggest variety of residential nationalities, international culture has significantly boosted tourism and property sales in the last 12 months. It is clear confidence in the market place is growing.”

Portugal’s ‘Golden Visa’ scheme last year similarly targeted high net worth buyers. Market surveys from the Royal Institution of Chartered Surveyors (RICS) highlight the wave of new buyer enquiries after the law was introduced, allowing Portugal’s housing market to stabilise. Michael hopes for a similar result for Fine & Country Marbella, “The sale of just 5,000 luxury properties in Spain could bring in an additional revenue to the economy of €1billion. Our neighbours in Portugal have seen a genuine lift in the property market thanks to government initiative. We expect luxury areas like Marbella, ideal for high end buyers, to profit from added migration.”

Editors Notes

Fine & Country specialise in selling luxury homes (above £450,000) and is one of the leaders in this sector. Its licensees’ properties are distinguished in their individual character and/or their country location. The company has offices in 275 locations around the world including in the UK, Dubai, Egypt, France, Malta, Mauritius, Namibia, Portugal, Qatar, Spain, South Africa and West Africa. Fine & Country won Best Estate Agency Marketing and Best International Estate Agency Marketing in 2009, 2010, 2011 and 2012 at the International Property Awards.

Media Enquiries:

Katie Herbert – Fine & Country Media Centre
Tel: +44 (0)207 4094673
Email: mediacentre (at) fineandcountry (dot) com

Office details

Marbella Club Hotel
Bulevar Principe
Alfonso von Hohenlohe
29602 Marbella
Malaga
Spain

Tel: +34 952 764010
Fax: +34 952 765008
http://www.fineandcountry.com

Sources:
http://residencyspain.com/
http://news.kyero.com/2013/05/31/foreigners-buying-property-over-half-a-million-euros-to-get-residency/
spain.alltop.com/

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Francesca Harrington or Sinead Egan
Fine & Country
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