T H E P U R C H A S E O F L U X U R Y P R O P E R T I E S

B Y F O R E I G N E R S I N S P A I N

A BOOMING SECTOR SINCE 2014

The real estate market is continuing its recovery in Spain headed by the luxury real estate market. According to a study conducted by Coldwell Banker, luxury properties will see a 2% to 3% increase in price in the city of Madrid. Part of the recovery of this market in Spain is due to the arrival of foreign buyers, who accounted for 13% of housing purchases in 2014. A report by TM Grupo Inmobiliario stresses that foreigners choose to buy homes in Spain as there are good airline connections with their countries of origin and for the high quality of life.

I N S P A I N

According to data from the College of Registrars, the main real estate buyers in Spain were British, followed by French and Russian. British __________________ 2.17 % French __________________ 1.34% Russians _________________ 0.97% *% corresponding to the total number of purchases made by foreign investors (13% of total sales in 2014)

B Y N AT I O N A L I T Y

Foreigners who invest in luxury properties in Spain know what they are looking for:

• Location of the property

• Privacy

• Services in the building

• Services in the area

• Good communications Foreign investors looking for luxury housing in Spain prefer:

• Madrid

• Barcelona

• Valencia

W H AT A R E T H E Y L O O K I N G F O R ?

Madrid is one of the Spanish cities preferred by foreigners to buy property. The Coldwell Banker España study indicates that Madrid is one of the European cities where foreigners buy larger homes. The average size of housing foreigners purchase in Madrid is 200 sqm, similar in size to houses in Milan and larger than the houses foreigners buy in Barcelona, Berlin, Paris or Rome.

M A D R I D

The statistics by Engel & Völkers indicate that the Chinese are the largest investors in Madrid, followed by Romanian investors. In both cases, they are interested in luxury homes. Chinese investors have been attracted by the large investments made by Wang Jianlin and the Wanda Group. Romanians display a change in trend, as they prefer the capital to the coast. Mexicans, Venezuelans and Bolivians are also interested in buying homes in Madrid; usually attracted by a feeling of security.

B Y N AT I O N A L I T Y

Foreign investors who buy luxury homes in Madrid have clear preferences.

• Borough of Salamanca.

• Paseo de Recoletos

• Príncipe de Vergara Street

• Paseo de la Castellana

• La Moraleja

W H AT A R E T H E Y L O O K I N G F O R ?

B O R O U G H O F S A L A M A N C A

Foreign investors know what they want when looking for property for sale in Madrid. The Borough of Salamanca is the most highly sought after area by this type of buyer. There are very limited possibilities of new developments in the Borough of Salamanca and, therefore, sales focus on second-hand homes.

L A M O R A L E J A

La Moraleja is another favourite spot for investors interested in luxury homes. La Moraleja offers newly built properties, unlike the Borough of Salamanca. The exclusivity factor is one of the reasons why buyers choose this area. Approximately 700 properties were on sale in La Moraleja at the beginning of the year.

L U X U R Y P R O P E R T I E S F O R R E N T

Changes in the economic situation have led to changes in mentality and in people's lifestyles. Consequently, the rental sector will become one of the driving forces of the real estate market. Studies suggest that rental contracts will account for 20% of all transactions. The effects of the crisis on the rental market has resulted in tenants having a more exclusive profile. Many current tenants have a high purchasing power.