Spain opens EU doors to Chinese in attempt to boost its housing market

First it was Britons searching for El Dorado in the form of a villa under the Spanish sun.

Now Spanish estate agents have turned to the east as Russians and Chinese have emerged as the fastest-growing groups of foreign buyers.
With the Spanish property market on its knees, Madrid passed a new law yesterday offering residency permits to foreigners who buy properties valued at more than €500,000 (£425,000).

Investors who buy €2 million of public debt will also be entitled to claim residency. This would give non-EU citizens the opportunity to move freely throughout the Schengen area, which abolished passport and immigration controls in 26 European states, including 22 EU and 4 European Free Trade Association countries.
Soraya Sáenz de Santamaría, the Spanish Deputy Prime Minister, yesterday denied that Madrid was “selling” the country. “We are not doing anything more or less than other countries like Britain, Portugal or Ireland, which have introduced similar measures,” she said.

The offer of residency is part of a package of measures that Mariano Rajoy, the Prime Minister, hopes will stimulate the economy after five years of recession. With unemployment spiralling to 27 per cent, Spain’s centre-right Government admitted that the economy may decline by up to 1.4 per cent this year.

A government source said: “The details of the new law have to be finalised but the point is to attract Russian and Chinese buyers.” The move comes as government figures published last week showed a 21.5 per cent fall in house sales in the first quarter of this year, compared with the same period last year.

Britons remain the biggest group of foreign homebuyers by nationality, making up 16 per cent of purchases by non-Spaniards last year. However, our interest in buying a Spanish villa has fallen dramatically since the financial crisis: Britons represented 61 per cent of foreign buyers in 2006. In contrast, the number of Russian and Chinese buyers rose by 48 and 35 per cent respectively between 2011 and 12, according to the College of Property Registrars.

Last year, for the first time, more than half of the 7,000 properties sold to foreigners on the Costa Blanca, a traditional stronghold of British expatriates, were bought by Russians. Chinese companies are already advertising Spanish property in Shanghai and Beijing, with residency permits as part of the deal.

“I think there is massive potential for both the Russian and Chinese markets,” said Alex Vaughan, a partner in Lucas Fox, an estate agent that specialises in luxury Spanish properties.

“Chinese investors and potential emigrants want to buy property because it is cheaper in Spain and legally more secure,” said Sylvan Ma from Square Foot Nexus, an agency selling Spanish property to the Chinese.

Foreign invasion
19,318 Spanish home sales in March, the lowest level since 2008
72% Fall in sales from March 2007 to March this year
26,871 properties bought by non-nationals last year, up 12.7 per cent on 2011
8.12% of properties were bought by foreigners last year
Sources: Spanish Institute National Statistics, College of Property Registrars

Special Thanks to The Times Europe

Residency for non-EU buyers of €500K homes

The news is likely to go down well with affluent Russian and Chinese property buyers, who are already the third and eighth biggest foreign homeowners in Spain.

“Obtaining the right visa permits and documents for Spanish residency in China and Russia is known to give anyone a bureaucratic headache,” Alex Vaughan, partner at luxury Barcelona-based estate agency Lucas Fox, told The Local.

“Although the new law hasn’t been passed yet, it’s likely to make it a lot more straightforward to obtain a permanent residency permit, rather than the temporary one that non-EU nationals have found so difficult to get up to now.”

Back in November, the Spanish government set the property investment hurdle at €160,000, a figure many believed made Spain look cheap when compared to the €400,000 sum demanded by Portugal and Ireland for non-EU residency permits.

They have since been drafting new legislation which, according to inside sources, will set the bar at half a million euros for prospective buyers looking to gain official Spanish residency.

“The only strings attached are, to our knowledge, no criminal record, proof of your ability to support yourself financially and private health insurance,” says Vaughan.

Approximately 90 percent of Lucas Fox sales come from foreign buyers, 40 percent of whom are either Russian or Chinese.

“We’ve had increasing interest from prospective homeowners from South East Asia, but also from Australia, the US, South Africa.

“People from overseas are attracted by the quality of life over here, and Spain has far better infrastructure, health care and transport than countries like Cyprus and Portugal that have introduced similar legislation.”

Vaughan told The Local that once the new law is put in place in June, it could only be beneficial for Spain’s ailing property market, despite the fact that demand for luxury homes like the ones Lucas Fox sells has continued growing throughout the crisis.

Thanks to The Local and Alex Dunham (alex.dunham@thelocal.com)

For more information Residency in Spain

Spain plans residency-permit investment threshold of €500,000, much higher than previous plan

After much dithering, the Spanish Government has let it be known it plans to raise the residency-permit investment hurdle to €500,000, which will buy non-EU nationals the right to reside in Spain for the duration of their investment.

he Spanish Government is reported to have prepared a new draft law granting qualified residency permits (with strings attached) to non-EU nationals who spend half a million Euros or more a home in Spain, according the Spanish press (elEconomista.es). The draft could become law as early as this summer.

This means the Government is finally doing something about the residency-permits-in-return-for-property-investments idea it floated last November, which met with stiff criticism. Back then the investment hurdle for a residency permit was just €160,000, which some said was too low and made Spain look cheap.

Under the latest draft, non-EU nationals – predominantly Russians and Chinese – would get a residency permit (with strings attached) for them, their spouses and children, upon spending €500,000 or more on a property in Spain. That would bring Spain in line with countries that have introduced similar incentives, like Portugal and Ireland.

Investments tied to residency permits will no longer be limited just to property. Permits will also be obtained with investments that create at least 2 jobs, or by investing in financial assets like Spanish government debt, say press reports.

The news will go down well with affluent buyers from outside the EU, particularly the Russians, who have already flocked to Spain as house prices dropped, and are now the third biggest group of foreign buyers by nationality.

Lucas Fox, an upmarket, Barcelona-based estate agency, reports a sustained increase in Russian, Chinese and Asian buyers in the last few years. In 2012, approximately 90% of sales at Lucas Fox came via foreign buyers, around 40% of those who were either Russian or Chinese, say the company.

An increase in the residency-permit investment threshold to half a million Euros will be good for upmarket property segments in Spain, say Lucas Fox.

“We are very excited about the potential impact of the proposed law change on our business,” says Alex Vaughan, a Director. “For the last 12 months we have dedicated a lot of time to business development in key regions such as China, Russia and India. We now have a large number of investors ready to buy as soon as the law is introduced.”

In anticipation of the surge in demand from non-EU nationals, Lucas Fox have set up a division called Residency in Spain to provide advice and support to clients who want to get residency permits in Spain through local investments.

But press reports suggest the law will not be retroactive, which would be a big disappointment to the many Russians who have already spent more than €500,000 on a home in Spain.

To read the full article on Spanish Property Insight

Chinese investors looking to invest 100 million Euros in Barcelona and Ibiza

Leading Luxury Real Estate Agency Lucas Fox once again demonstrates that it leads the way in attracting foreign investment to Spain.

In collaboration with leading Asian property consultancy SQFT, the Barcelona-based enterprise will showcase some of its most exciting residential and commercial opportunities in Cataluña and the Balearics to a delegation representing nine groups of Chinese and Korean investors.

The Spanish property market, in particular in Barcelona and Ibiza, has become increasingly attractive to investors from the Asia-Pacific region, thanks to a proposed change in Spanish residency law allowing non-EU citizens who buy a property upwards of 500 000 euros to automatically receive Spanish residency. The initiative has primarily been aimed at Chinese, Russian and American investors who otherwise would need a European visa. The new law is expected to come into force by July 2013.

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 began working on the collaboration in September 2012. In less than a year, this former commercial property lawyer has attracted a huge amount of interest in both Catalunya and the Balearics.
The delegation will arrive in Barcelona towards the end of May. The group will then travel to Ibiza where the Lucas Fox Ibiza team will showcase some of its most attractive properties on the island.

Jason Ham, who is based in Ibiza, comments “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”

Besides being presented with unique investment opportunities, the Chinese delegation’s visit will coincide with many of Ibiza’s opening season parties and events. The group will be attending the ‘International Music Summit’, one of Ibiza’s most important music festivals, celebrated in the Old Town (Dalt Vila) and hosted by some of the world’s leading DJs.

Facts & Figures:
Foreigners accounted for more than 80% of sales at Lucas Fox in 2012, the majority from Northern Europe and Switzerland, and approximately 5% from Russia and the Asia-Pacific regions
Overall foreign investment in Spanish real estate increased by 17% in 2012, to the highest level since 2004, according to the latest figures from the Bank of Spain.
Foreigners spent 5.54 billion Euros on Spanish property last year, up from 4.7 billion in 2011, and a 52 percent increase compared to the total of 3.6 billion in 2009
7 billion Euros was spent by foreign investors in 2003 in the midst of the Spanish property boom

For more information on this press release, quotes or high resolution images please contact Carrie Frais by phone on +34 620586655 or by email carrie@lucasfox.com

Oferta de trabajo: Agente de ventas para la Costa Brava

Lucas Fox precisa un agente inmobiliario de ventas para la zona de Playa de Aro, S’Agaró y Sant Feliu de Guíxols, en la Costa Brava. El/la candidato/a debe tener como mínimo 2-3 años de experiencia en el sector inmobiliario y una experiencia demostrable en la venta de inmuebles. Se valorará el conocimiento específico de la zona. El/la candidata debe residir en la zona de la Playa de Aro. Es esencial tener un nivel alto de inglés y español, y preferiblemente conocimientos de ruso. Es indispensable tener permiso de conducir.
Para más información podéis contactar con tom@lucasfox.com

Job Offer: Costa Brava Sales Executive

Lucas Fox is looking to recruit a sales and listing agent to develop the business in the area of Playa de Aro, S’Agaró and Sant Feliu de Guixols in the Costa Brava . The candidate must have at least 2-3 years previous experience of the real estate sector and a proven track record in residential sales. A specific knowledge of the target area is preferred. The candidate should be based in or close to the Playa de Aro area. A high level of English and Spanish is essential and a knowledge of Russian is strongly preferred. Valid driving license essential.
Applicants should contact tom@lucasfox.com for further information.

Duplex penthouse apartment for sale in Plaza Catalunya Barcelona

Ideally located close to some of Barcelona’s best designer shops and popular restaurants, this outstanding property boasts wonderful sea and city views. Two parking spaces also available.

This exceptional bright and spacious penthouse for sale in Eixample is located in the very heart of Barcelona in Plaza Catalunya.

Occupying the eighth floor of a magnificent building that was completely renovated in 1998 the property offers amazing views over the entire city of Barcelona, from the sea and the mountain of Montjuic to the mountain of Tibidabo.

The penthouse measures 281,48 sqm with a 35 sqm terrace, kitchen, pantry, spacious living/dining room, 5 bedrooms, 3 bathrooms with shower or bath and a service area.

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Ático dúplex en venta en la Plaza Catalunya de Barcelona

Con una ubicación ideal cerca de algunas de las mejores boutiques de diseño de Barcelona y de los restaurantes más populares, esta extraordinaria propiedad cuenta con maravillosas vistas al mar y a la ciudad. También tiene dos plazas de parking disponibles.

Este excepcional ático luminoso y espacioso en venta en el Eixample (Ensanche) está situado en el corazón de Barcelona: en la Plaza Catalunya.

El piso está situado en la octavo planta de un magnífico edificio que fue totalmente reformado en 1998 y ofrece unas vistas impresionantes de toda la ciudad de Barcelona, del mar y de la montaña de Montjuïc y de la montaña del Tibidabo.

El ático mide 281,48 m² con una terraza de 35 m², cocina, despensa, amplio salón / comedor, 5 dormitorios, 3 cuartos de baño con ducha o bañera y una zona del servicio

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More Trading Expected in Barcelona Property Market for 2013

Our latest market reports predict that 2013 will see increased trading in the Barcelona property market as investors decide not to wait for further price reductions when eyeing their preferred property for sale in Spain.

The Lucas Fox real estate market reports highlight the higher number of property sales transactions in 2012, the competitive international rental yields for Barcelona apartments, and the slowing down in quarterly property price drops.

International investors are now buying luxury properties that they see as having a good potential for medium to long term value. 2013 is expected to see a greater level of competition amongst these investors, especially if new Spanish laws providing residency permits for foreign buyers take effect.

Lucas Fox releases half-yearly market reports covering Barcelona, Costa Brava, Ibiza and Mallorca. These reports collect together the latest national property prices data as well as summarise recent property market research.

Speaking on the release of the latest market reports, Lucas Fox Director Alex Vaughan said: “The Barcelona property market is a particularly good investment choice for the medium term. We have collected research that shows the rental yields in Barcelona city are now comparable with other key European city markets. Figures show an increase in property trading, a sign that buyers are not willing to wait before purchasing any longer. We are receiving greater numbers of foreign investor interest from new markets like China, India and Latin America while still maintaining our traditional levels of interest from buyers across the UK and Northern Europe.”

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Ibiza Real Estate – Luxury Villa for sale in San josé of Ibiza

This is a truly magnificent contemporary villa currently being built in Cala Jondal, one of the most desirable areas of Ibiza. With 6 large ensuite bedrooms, large garden and pool, this is a must-see property.

Currently under construction, this ultra contemporary property comprises of 6 bedrooms, 7 bathrooms, stunning glass-fronted living area, Bulthaup kitchen with state-of-the-art appliances, infinity pool, garden and chill-out area.

All finishes are of the highest quality and features include a Domotica system, handmade oak wardrobes, solar panelling, stone floors, stone façade and LED lighting.

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