Middle eastern buyers move into spanish property market

After the fall of communism, the oligarchs and Russian business elite focused their real estate attentions on the playground of Europe, the Costa del Sol but now the land of sun, sea, sand and sangria is luring buyers from further afield - the Middle East, to be exact.

And they are coming in their droves, according to Taylor Wimpey España, who recorded a 1,400 per cent year-on-year increase (Jan-May 2013 vs Jan-May 2012) in Middle Eastern buyers with the glamorous Costa del Sol once again proving the most popular area in which to own a second home.

Marc Pritchard, Sales and Marketing Manager at Taylor Wimpey España comments:"For the past 50 years, we at Taylor Wimpey España have primarily been selling high quality second homes across Spain to Europeans with the British, Germans and Scandinavians the biggest buyers. Things are changing though and fast. Over the last year we have sold properties to buyers from Saudi Arabia, Kuwait and Jordan as well as Morocco in North Africa.  

"In terms of location, by far the most sought after area is the Costa del Sol. Known globally as a European hotspot for glitz and glamour, it's still the place to be seen for many and has become a real magnate for savvy Middle Eastern investors."  

The resort town of Marbella in particular, has always operated on a different plane to the rest of Spain. From the exclusive nightclubs of Puerto Banús to the Saudi Royal Family's replica of the White House, wealthy Middle Eastern investors have been melding Marbella in their own image for years.

Indeed, Middle Eastern buyer numbers are set to increase as the new 'golden visa' (set to come into effect next year) will enable non-EU nationals who invest more than €500,000 to get the highly sought after automatic right to residency in the country.

Mr Pritchard continues: "The sale of Spanish properties to Middle Eastern buyers who are able to obtain residency could bring in untold additional revenue to the country. Our neighbours in Portugal have seen a genuine lift in the property market thanks to the government initiative and we expect areas like Marbella, ideal for high end buyers, to profit from the added migration."