May 31, 2017

Foreigners continued to invest in real estate in Spain

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Spain continues to be an important center which attracts the attention of international investors, especially of American and European citizens. According to the report published by the Spanish Ministry of Economy, the total volume of foreign direct investment in Spain amounted to 387.315 million euros by the end of 2015, and this figure is comparable to that of one third of the gross domestic product (GDP).

In addition, of this amount, as indicated in the official report, a productive investment amounted to 347.745 million euros, which, in turn, generated around 390 billion euros in commercial operations, apart from providing jobs to 1.18 million people in Spain.

It is also worth noting that among the total investment numbers that are calculated by adding the value of the equity assets (balance values) as a result of direct investments to the companies plus the remaining balance of non-resident investors' net loans, investment in real estate in Spain plays a prominent role.

And more precisely the published report states that investment in real estate in Spain amounted to at least 17,096 million euros, 24% more than a year earlier. Above this indicator are situated only investments in the supply of electricity and gas (15.8%), production of other non-metallic minerals (8.7%), telecommunications (6.7%), wholesale sales and commercial mediation (6.5%), and then in real estate transactions (4.9%). Therefore, the real estate sector is receiving 5 out of every 100 euros that foreign investors put in Spain.

On the other hand, other sectors of the Spanish economy, which are the focus of foreign investment, are financial services (excluding insurance and pension funds, 4.3%), metallurgy (4.3%), retail (4.1%), additional activities to financial services, including insurance (3.4%) and production of motor vehicles (3.2%). Only these 10 sectors already represent gross investments of 214.952 million euros, that is, more than half of the total.

Meanwhile, the United States of America and European countries are the main stakeholders to invest in the real estate sector in Spain, as evidenced by data provided by the Ministry of Economy under the direction of Luis de Guindos. According to their findings, the four major European powers and the United States are the countries that have invested more than any other country in real estate in Spain.

In 2015, the investment coming from the USA amounted to 50,046 million euros, which represents 14.4% of the total, while Great Britain was in second place with 44.62 million euros and a share of 12.8%. Meanwhile, Italy was third with 40.879 million and 11.8% of the total; France ranked fourth, with 40.106 million euros and a weight of 11.5%; while Germany was fifth with 27.55 million euros, representing 7.9% of the total. Among the top 10 countries also appeared Mexico, Luxembourg, the Netherlands and China. A total of 44.261 million euros of the funds invested in Spain came from Latin American countries.

At the same time, according to the data, Catalonia became the second region, after Madrid, in terms of the volume of investments received, that is, 47,706 million euros, which represents almost 14% of the total.

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