Foreign investment in Spanish property increases 32.8 percent

It appears that foreign investment in Spanish property is once again on the rise. This new wave of investment in probably due to the recent reductions that have been seen in the property market since the end of 2010. Investment in property in Spain surged by 32.8% in the first half of 2011 over the same period in 2010, to 2,445 million euros, according to the Bank of Spain.

Moreover, these investments exceeded 1000 million between April and June for the second consecutive quarter. Something not seen since 2008, before the final collapse of these purchases. In the second quarter, an increase over the first purchases was 16.1%.

Foreign investment in Spanish property had been falling steadily since 2003, when it reached 7.072 million euros, 2004 saw this decrease to 6650 million, 5.495 million in 2005 and, finally, 4.716 million in 2006.

However, this trend was reversed in 2007, when 5.341 million euros was invested, a 13.3% more than 2006.

2008 saw a similar figure of 5.331 million invested in Spain.

Then in 2009, the economic crisis saw investment decrease to 3,651 million euros.

If the trend for this continues, we will see foreign investment in Spanish property rise to the 2008 figure. A good portent for owners of properties, whether residential or commercial in the more popular locations.

Andrew Bellés

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