Spanish residency law drives up chinese demand

The Spanish property market, in particular Barcelona and Ibiza, has become “increasingly attractive to investors from the Asia-Pacific region”, says the agent. 

The initiative, which is primarily been aimed at Chinese, Russian and American investors who otherwise would need a European visa, is expected to come into force by July 2013.

Photo credit: Michael Marner

Demand for Spanish property has returned significantly in recent months thanks to the country’s lowering prices. Overseas investment in Spanish real estate jumped 17 per cent in 2012 to the highest level since 2004, according to the Bank of Spain, with total international spending reaching €5.54 billion.

Indeed, foreigners accounted for over 80 per cent of Lucas Fox’s sales last year, with the majority from Northern Europe and Switzerland. Only 5 per cent were from Russia and the Asia-Pacific, but that number is now on the up.

In response to the demand, Lucas Fox has collaborated with leading Asian property consultancy SQFT, to showcase opportunities in Cataluña and the Balearics to a delegation representing nine groups of Chinese and Korean investors.

SQFT director Han Bin comments: “Most Chinese investors want to buy a property in Barcelona because, not only are they getting a good investment, but there is now the opportunity to acquire Spanish residency at the same time. What’s more, the market is particularly attractive given the historic low prices.”

Lucas Fox’s business development manager Jason Ham adds: “We have seen Chinese investment in many corners of the world but this is the first time that we have seen interest in Ibiza. Thanks to the proposed changes in residency laws for property investors outside of the European Union, we expect to see increasingly more interest from the Asia-Pacific region as well as Russia and the US.”