Spain, in the top 10 of global real estate investment

España, en el top 10 de la inversión inmobiliaria a nivel global

Spain, in the top 10 of global real estate investment

Colliers’ Global Capital Flows report places Spain among the most desired destinations for investing in the real estate sector. Specifically, our country ranks among the top three favorite European enclaves for investment and in the eighth position in the global ranking. According to the consultancy, Spain attracted a total of $2.21 billion (€2.06 billion) in real estate investment from June to December 2023. These figures propel Spanish real estate to climb positions to be in the global real estate investment “top 10.”

The United Kingdom, with $8.417 billion, leads the ranking as the main destination for cross-border capital in the global real estate sector. The United States and Japan, with $8.278 billion and $4.629 billion respectively, follow. Liquidity, transparency, and competitive prices have led these three countries to lead in investment.

Germany ($4.279 billion), China ($3.896 billion), Canada ($2.686 billion), Australia ($2.387 billion), and Spain, which ranks eighth, complete the list. Singapore ($2.124 billion) and France ($1.790 billion) occupy the last positions.

Together, the top four European countries – the United Kingdom, Germany, Spain, and France – accumulate 41% of the total capital invested worldwide ($16.696 billion), confirming the great appeal of European markets to international investors.

According to the report, investment behavior in 2023 was slow and uneven due to disparate economic growth and price adjustments in different markets. Likewise, sustained inflation, along with rising interest rates, has directly affected investment activity, especially in Europe and North America.

Economic stability, favorable regulatory framework, and diversified asset offerings

However, Spain is an exception in the European context, as it is one of the few countries on the continent that has managed to maintain a dynamic pace in investment, despite the current economic situation and geopolitical context.

According to the consultancy, economic stability, a favorable regulatory framework, and its diversified asset offerings are the key to the favorable scenario for real estate investment in our country, which has consolidated its position as an irresistible investment destination for buyers and investors.

And it’s no wonder because Spain is a key destination for foreigners, whether for its excellent climate and quality of life, its heritage, or simply because it is a major tourist power. In this regard, our country has achieved a significant milestone, as in 2023 it became the world’s leading tourist destination, surpassing France for the first time in history. The tourism sector, revitalized after the pandemic, is currently experiencing its best moment in four years. This undoubtedly has a direct impact on the Spanish real estate sector, particularly in the residential segment.

There is no doubt that Spain is one of the most attractive destinations for investment, although one should not overlook the possible impact of the recent elimination of the residence permit for real estate investment in Spain, known as the “Golden Visa.” This measure would affect less than 1% of the homes purchased annually in Spain, so according to experts, the impact on the real estate market will be very limited.

The Ministry has already begun the process to eliminate this visa, which grants residency in Spain to foreigners who invest half a million euros or more in housing. The main objective is to reduce speculation in cities such as Madrid, Barcelona, or Alicante.

This news comes at a time when the purchase of housing by foreigners represents 15% of all acquisitions, according to data from the College of Registrars of Spain, as reported in its 2023 Yearbook of Real Estate Registry Statistics.

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