According to Premier Marbella sources, the President of the Federation of Developers and Residential Tourism in Spain, Ricardo Arranz has asked the central government to allow immediate access to residence permits for those who purchase a property of at least half a million euro instead of having to wait until next January 1 when the new ruling enters into force.
He has pointed out that this measure is “vital” for the reactivation of the real estate sector and for economic recovery of the Costa del Sol and this will place Spain on an equal footing with other countries that have already allowed residence permits, such as Portugal and Ireland.
In the province of Malaga there is currently a major stock of unsold property. Leading Marbella property specialist Romano Keogh is confident that this measure may provide a boost to the acquisition of property thereof by investors from Russia, China, Saudi Arabia, Norway and Finland, the markets that have most interest today in the Costa del Sol.
The Spanish property market has not yet recovered from the bursting of the housing bubble and prices have continued to fall across the country. Most of the interest generated in the property market is targeted at properties that have problems or buyers who bring cash. In an economy that seeks to overcome the economic crisis and where the price drop of real estate has never been more significant ‘cash definitely seems to be the king’. Tourism is helping to attract foreign investment more than ever and in 2012 the number of tourists visiting Spain was up a million on the previous year.
Although property prices have been falling, the demand for Spanish properties from abroad remains buoyant. The fact that buyers can now purchase high quality assets at prices considerably cheaper has attracted much interest from those looking to buy a second home in the country. Buyers with money have also shown great interest in finding a way to take advantage of some truly exquisite properties at incredible prices.
The Russians look to the Costa del Sol as a major Andalusian destination to spend their Christmas holidays. It is foreseen that 9.000 Russian tourists will arrive between the last two weeks of the year and early 2013 according to the company Translationhouse which are dedicated to language services specializing in tourism, catering and entertainment, with a strong specialization in the Russian market.
In fact, before the rise of tourism from the east, this company introduced in Malaga and the Costa del Sol an online Russian directory guide that presents Malaga businesses to potential Russian clients. Experts have said that the recent boom in tourism in Spain is one of the reasons why the middle class buyers are becoming increasingly more prominent in the real estate market. The number of Russian visitors who come to Spain almost doubled in 2012, with a record millionth tourist arrival in Malaga on October 31.