Spanish Government Looks to Foreign Property Buyers20/10/2012
The ‘surplus’ of unsold new housing in Spain is around 680,000 properties and, according to current estimates by the government, up to 300,000 of these are suitable for holiday accommodation.
These properties are largely located in the Mediterranean and in the islands and located in areas that make them particularly suitable for use as a holiday home and tourism.
The government stated that the demand by foreigners is critical for the recovery and stimulation of the real estate sector. They also recognised that improving the legal and fiscal framework are important for the recovery, promising a commitment to enhance the brand image of Spain to buyers outside of Spain.
To this effect, the government recently approved a draft modification to the Coastal Act, which will resolve expiring concessions under the previous act from 1988.
The draft gives an extension of 75 years for housing near the coast, about 2,000 of which would have required demolition in 2018. With this bill, the government intends to remove any ambiguity and provide confidence to foreign investors.
In addition, the Institute for Foreign Trade (ICEX) is persevering with promotional plans aimed at selling property to foreign investors, including participation at trade fairs and business events in a number of foreign countries.
The general approach is to develop a set of commercial, informational and ‘business to business’ tactics that increases potential interest and awareness of the Spanish real estate supply, particularly for new property – the priority markets are the UK, Germany and Russia.
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