«Outside our borders, Spain is considered as a very good option to invest, and this is because we have stable and qualified construction and real estate sectors», explained Solvia.
According to the report Solvia Market View, during the third quarter of 2019, the biggest foreign investors were the British (14%), followed by the French and German (with 8% each). In fact, the British are the community that is growing the most in our country, according to demographic data from Statista, there are 287.292 more British citizens in the country at the end of 2019.
The areas chosen by these investors are concentrated along the Mediterranean coast and the islands, where 53.000 operations were carried out. The Costa del Sol and the Mediterranean coast, especially Alicante, concentrated more than 40% of closed sales. The Valencian Community leads the ranking (7.460 transactions during the year’s second quarter), Catalonia (3.824), Canary Islands (1.928) and Madrid (1.856).
In terms of timing to execute the sales, Madrid, Canary Islands and Seville are the areas where real estate operations are closed quicker (between 3-5 months). On the other hand, the areas where these operations take longer are Ourense, Cantabria and Salamanca, where the average can surpass one year.
Price is one of the most important factors for foreign investment. During the Summer the average prices were 1.580 euro/sqm, showing an aggregated increase through 2019 of 5%, which contrasted with the 30% increases reached during 2018. Solvia predicts that prices will remain around 1.600 euro/sqm at the close of 2019, registering a 6% increase.
For 2020, with more offer and a more rational demand, developers will face a new challenge for the future. «They will need to make an effort in order to position themselves and reduce their costs of production, seeking new ways to be more effective in their industrial construction processes, as is the case of other countries within the European Union», pointed out Solvia.