The water-logged summers Northern European countries have
experienced over the last couple of years have prompted record numbers of
Scandinavians to look for homes in Spain. The number of buyers from Sweden
purchasing property in Spain rose by 138% last year, property specialist
Kyero.com reported recently.
The average Swedish buyer looks for 2-bed apartments with
sun terrace or balcony costing around EUR 160,000. Now that prices at the Costa
del Sol and Costa Blanca have fallen considerably, buyers from Sweden have
flocked to Spain’s property market to snap up bargains in Fuengirola, Marbella,
Malaga, Torreveija, Nerja and other coastal resorts.
Daniel Nilsson, the Regional director for Spain of The Real
Estate Agency, Sweden’s leading real estate organisation, said in a recent
interview with Kyero.com the climate and quality of life people enjoyed at the
Mediterranean Sea were still be greatest attraction for foreign investors, but
the much improved accessibility for Swedish buyers had made all the difference.
Sweden enjoys a strong economy, making a home in Spain truly
affordable, but over the past few years more budget airlines have started
offering direct flights between Scandinavia and Malaga as well as Alicante.
This means Scandinavian buyers can visit their holiday homes more often than
before.
Average Swedish buyers are mostly in their mid-fifties,
couples hoping to find their dream holiday home that will also double up as a
retirement home in years to come. Most of these couples will use finance from
home, either by taking out a mortgage or by using savings or selling shares to
buy their Spanish homes, Mr Nilsson said.
The average price paid by foreigners for an Andalucía-based
home bought in 2012 was just EUR 164,000; however, some regions attracted
higher prices than others. According to Mr Nilsson’s own company statistics,
buyers in Torreveija paid on average just EUR 114,000,while property purchases
in Nerja were typically made for an average of EUR 245,000.
In parts of the Costa del Sol it is quite possible to buy
resale homes for less than EUR 75,000. In Marbella the average 2-bed apartment
with a sun terrace and easy access to the sea or golf course costs typically
around EUR 150,000 to EUR 250,000, depending on location and interior finish.
It seems the drive to attract more Swedish buyers, which
began in the autumn of 2012, has born fruit. The Costa del Sol Tourist Board
took part in a promotional campaign that was specifically aimed at Nordic
countries. Under the heading of “Living Costa del Sol” the region was being
marketed as an ideal destination for retirement, where a huge number of surplus
homes were waiting for buyers.
Last October the Spanish Embassy hosted an event to which
estate agents, local authorities and tourism operators had been invited.
Tourism from Sweden has increased dramatically year-on-year and this is now
translating into increased property buying activity.
In 2011 some 120,000 Swedish people visited the province of
Malaga, a 41% increase on the previous year. Overall, Spain’s tourism sector
recorded a record year with a 5.7% growth last year, totalling EUR 56,000
million expenditure by foreign tourists in 2012, a huge influx into the Spanish
economy.
Despite reports home rental prices fell across Spain by 4.7%
last year with an average rent of EUR 598 per month, holiday lettings in some
parts of Spain are still a good long-term choice for investment.
The downturn in rental yields is largely due to Spain’s high
unemployment, which put a serious dent in domestic tourism; however, the influx
of foreign visitors, many of whom are discovering the delights of sunny Marbella
for the first time, means holiday lettings yields for apartments, villas and
town houses will achieve better results than they have in recent years, when
Malaga holiday lettings saw a 31.51% decline due to the huge number of empty,
unsold homes in the city.
However, renting a holiday home in Marbella or other Costa
del Sol resorts is as popular as ever, particularly with families and middle-aged
couples commanding higher disposable incomes. As a result, buying a bargain
price home in Marbella pays for itself quite quickly and makes for a sound
long-term investment.