American capital is also interested in the galician real estate market, here you will know why
The connection between Galicia and America has existed for centuries, the middle of last century there was wave of Galician emigrants to America to escape the crisis that occurred after the civil war, and now many of these same migrants and now their descendants return to their homeland in search of business opportunities.
Although usually when you think of foreign investors in Galicia, they are from England, Sweden, Denmark, Germany, Europeans in general purpose, and also Asians and Arabs. However, buyers who come from America have been increasing gradually in number, of course not enough to be compared to those mentioned above.
The have always preferred other major European capitals such as Paris, Rome, London, and even Madrid, and when visiting the interior of Spain opt for more tourist and beach destinations such as Marbella, Malaga, Mallorca or Ibiza American tourists, places Hollywood stars and businessmen, acquire property for summer and again in fashion now.
Therefore, we can say that Galicia is really the background for US investors, probably by the lack of charm and variety of options offered by the Galician coast.
What seek Americans in Galicia?
Most American investors allocate their capital in Galicia are from the United states. The motivation of these, differs greatly from that of European or Arab, seeking retirement homes or holiday. US investors are largely investment funds that have been in Galicia a business opportunity, therefore, have been acquiring properties as real estate, commercial and luxury real estate, for example, before 2008 were valued at 1 million euros and that today can be purchased for 400 thousand euros.
The fall in prices in real estate, has made Galicia and Spain in total that were previously marginalized, now is the most desired destinations for funds seek businesses or companies that are in a tight financial product of the real estate crisis of 2009, therefore they made long-term investments that generate high returns by having good assets but with difficulties in terms of capital.
Other major investors who also have come looking for businesses in Galicia, were also Mexicans and Venezuelans, although operations have been specific, but not no longer important.
These come by like those of US motives in the region to buy property at low cost, representing opportunities. Most of the properties have attractive for Latinos houses and warehouses, which can then be converted into hotels, hostels, or deemed to be undervalued. Very few make such investments in order to turn them into a second home, as Europeans do, but long-term economic benefit.
This mechanism business generates miserably low productivity or life for the Galician coast, they buy it cheaper to wait for fattening the price. However, the fact that the main buyers of these properties are both large companies like Pemex and Banesco of Mexico and Venezuela respectively, has contributed to other major companies interested in investing in the locality.
Pemex investment in Galicia has attracted interest from other Mexican companies such as Grauforz Group and ADO, maybe they are not related to the housing market but have represented a significant capital contribution in the region. Pemex invested only $ 5.1 million.
The spanish government also helps investors
The Spanish central government decided because of the housing crisis, get rid of buildings that served as government offices were run directly by the government or third parties on behalf of these and currently represent a liability to the Spanish state. In Galicia have totaled 260 properties since 2013 have been offered for sale or auctioned, which of these 260, 126 are the Ministry of defense and 107 of Adif, the rest belonged to other departments.
The properties that are being sold are of different types, including houses, lots, offices, shops and farms that were not being productive for the state. These properties have been the target of American buyers as mentioned above seeking to optimize where they deposit their capital, acquiring economic properties to then be re-evaluated.
Most of these properties are located in the cities of Pontevedra, A Coruña, Ourense and Lugo.
What offers the region to private buyers?
Despite the current economic situation many American countries live, acquiring a home in Galicia is still a feasible option. Not only by prices but by the characteristics of the region, which make it possible for your home will also be productive.
And, something that characterizes Galicia, is that most of their homes are cottages, and even ranks among the top 10 destinations most important agricultural tourism in Spain with 153,000 annual visitors taking tourism this type. The fact is that you can take advantage of acquiring a property of these characteristics, placing for rent during periods when you are away, tourists who want to enjoy the countryside and the tranquility of the place.
Furthermore, Galicia has excellent public services, its health system is the best in the country, with public hospitals are always equipped, hygienic, and staff first for attention. This makes the cost of private medicine are cheaper than in the rest of Spain to compete with the public system.
The region has equally sufficient means of communication and transportation with the rest of the country and the continent, since it has three airports, which offer daily flights to European capitals, from where you can take international flights to any airport in America . If you want to move to any city in Spain you can perform through roads and highways, and of course, has a major port through which you can reach other important as Portsmouth, and others within the continent.
For the rest, Galicia has all the amenities in terms of shops, both family businesses that are located in small towns as well as famous brands that can be found in the larger cities in the region such as La Coruña and Santiago. Another thing you can not miss in Galicia are restaurants with typical food of the area, like bars. You can also enjoy the spectacular beaches of the Galician coast, and to continue the relaxation, you can participate in therapy in thermal spas are in Ourense, take golf lessons or sample wines at the various festivals that are common in the region.
Galicia is associated with rural landscapes of permanent greenery that attracts the attention of visitors, the iconic road to Santiago de Compostela which is must for believers and pilgrims in the world, makes this very attractive location for tourists from all over America, especially adventurers or wanderers who want different experiences. To this is added the number of small, very welcoming people who constantly have festivals of great tradition, giving an affectionate and welcoming atmosphere that meets its coast and evokes a permanent festive and beach atmosphere throughout the year.
When we advise to invest
Igancio Acosta Sorge with all his experince in Spain, makes some advises for real estate market.
If it is within your means, try to do it now, real estate in Spain bottomed out and it is estimated that a rebound effect in the coming years, an effect that has already begun in other destinations such as Marbella and Malaga, where in 2014 occurs and there was an increase of 14% on the purchase of real estate.
In Galicia, the property prices are still low but the rebound will be here soon, and since European tourists have made their commitment to this region, especially the Scandinavians who have been increasing their investments abysmally, example of this is the Norwegian which they have grown by 108% and Swedes to an incredible 138%, although the English are those who maintain market supremacy with 19% of properties on behalf of citizens with nationality. There are many factors contributing to this trend, the Nordic countries maintain a strong economy. The Swedes, outside the euro, have a good exchange rate, something the British do not have today. And real estate prices in Spain have dropped something in the region of between 30% and 40%, allowing buyers of the strongest nations to realize their dreams of owning a property abroad, especially in Spain.
Therefore, Americans who want a property in Europe, should seriously evaluate Galicia as the location where to place their capital as owning a home in the old continent will always be a luxury for anyone, and also today can find numerous options, from a cottage, beach apartments and modern apartments in the main cities of Galicia, for prices 5 years earlier had thought it was a scam. It is therefore possible to choose from a medieval castle to a modern apartment located near the coast. The same goes for prices ranging from a few thousand to million euros. Because of this, great American, Mexican and Venezuelan conglomerates have decided to invest and place branches of their businesses in this region.
Written by: CAPD
Contribution to the reader: Explain the business mechanism and the reasons why Americans invest in Galicia. also encouraging small buyers to be encouraged to invest here with all the options offered by the region.