Asian investors have projects on the Costa del Sol
Foreign investment in Marbella, is common, so much so that 85% of the properties acquired in the region are held by non-Spaniards. Of course, buying Europe has historically been the largest, mainly due to its geographical proximity to Spain and economic facilities they own. However, Asian, specifically Chinese, have grown in recent years on its investment in the region, positioning itself as part of foreigners with better projections to acquire property on the Costa del Sol.
The growth of Chinese investment in the region has been presented both by people through the visa Gold that Spain offers to citizens of other countries, acquire properties with a higher price to 500 thousand euros and therefore they can obtain this visa that allows them stay for 90 to 180 days in the country. Chinese investment has also come across Asian real estate groups who saw their window of opportunity in Marbella, and have therefore decided to launch ambitious projects in the region. This increase in purchases by Chinese on the Costa del Sol, China has ranked in the Top 10 foreigners acquire more properties in Marbella, and as the first of a country outside the European Union.
This growth in purchases of property has been driven in part by falling prices in the region caused by the 2008 crisis where property values fell an average of 37% in the city. Prices have not yet reached the same levels of 10 years ago and has been making home ownership for people who previously had not been more accessible. For all this, notices Sale now last less in the windows of the properties and the number of buyers has increased significantly, and of course, most of these new buyers are foreigners.
The Chinese have traditionally preferred other European countries prior to Spain, therefore, it is normal to see them in London or Paris as Asians seeking luxury properties high as penthouses located in the most exclusive areas of cities. Something similar happens in Madrid or Barcelona, who are the cities where greater demand from China in terms of purchasing real estate. Although we still need to grow the interest of Asians in Marbella, however, the Costa del Sol has the advantage of exclusivity that has always characterized Marbella, next to the behavior of the real estate market has caused interest the region again, and become one of the favorite destinations for Asians to invest and vacationing in Europe, leaving aside some of the favorite cities such as Rome, Paris, London or even Madrid.
What they seek Chinese on the Costa del Sol?
The tourist and the Chinese investor differs from the interests of investors of other nationalities as Europeans or Arabs seeking properties for personal use, ie, a place to retire or vacation summering in general. Chinese investors, we must consider that seek high-level properties, and have nothing to do with the Chinese citizens who are commonly seen in China Town or supermarket owners.
The fact is that Asians rather than walk or relax on a beach, prefer to do shopping tourism, ie visit cities where there are lots of shops of the largest and most famous brands of all types of articles worldwide. Therefore, traditionally the Chinese have first choice to invest in major European as Paris, Rome, London and of course Madrid.
Thus, Marbella presents itself as an excellent choice for this type of investors due to the characteristics of the city. Stores in major fashion brands in the world are here as Gucci, Dior, Dolce & Gabbana, Louis Vuitton, Bulgari, just to mention a few. The same applies to restaurants and nightclubs that are decorated with frequent visits of artists and TV characters. Most of the premises are located in the Ribera street where clubs like Pangea, Tibu, Cavalli, Seven, are among others, that make famous to this port. If your taste leans more toward gambling and betting, you can visit the Nueva Andalucía Casino, which also has a restaurant and private parties.
Thus Marbella for its luxury apartments and villas, has been planted as one of the best options for Chinese investors who want to buy property in Spain. An example of this is the growth of 392% between 2014 and 2015, placing Spain as the country with the largest Chinese investment in all the Mediterranean ahead of Portugal, Italy, Cyprus.
How has increased Chinese investment in Marbella?
Since the 60`s, the Costa del Sol has been synonymous with luxury, elegance and sofisticidad, so buyers who invest in this region looking for these types of properties and the price must correspond to the demands of the owners. In this way, private buyers looking for homes of this type and spare no expense to make their properties from the best, putting everything to your liking. But the reasons why the interest of Asian investors has increased are mainly due to two reasons:
Excellent price / quality
After the housing crisis, Marbella was one of the cities to recover faster from the sharp drop in prices. Growth has experienced both in terms of sales, which saw an increase of 28% by the end of 2014 in terms of shopping, and a rise of 2.2% in property prices for the same time. Rising shopping in the region, is expected to continue in the coming years, while prices will remain more neutral and without many variations.
However, the prices are good considering the location, excellent service and luxury that carries Marbella, so compared to other destinations in the Mediterranean and other major cities in Europe, the Costa del Sol is presented as an excellent investment for enjoyment, and to generate future performance.
Recently, the Spanish government has applied a procedure known in other European countries known as the Golden Visa. This allows acquiring Spanish residence by buying a property that exceeds 500,000 euros, among other requirements. However, the number of Asians who have entered the country through this methodology has not yet made a big effect, probably by the new measure. Yet the government hopes that this will help the massification of Asian investment in Spain such as happened in Portugal for example.
What investments comes to the future?
Ignacio Acosta, real estate consultant checks which are the most ambitious projects in the region by Asian citizens.
Investment in the autonomous community of Andalusia has begun, specifically in Benahavis, very close to Marbella town best known as the dining room of the Costa del Sol.
One of the largest real estate and tourism conglomerates in China called Wanda and belongs to the Chinese billionaire Wang Jianlin has put his interest in the region. The company has focused on acquiring land to build housing complexes in this area, which is currently being developed where most luxury projects in the region.
The project specifically called Wanda star, is a luxury hotel, and will take place hand in hand with the Villa Padierna group. This projected possibly encourage property investment from China to continue taking Marbella and the Costa del Sol as a destination for investment.
The purchase of real estate by individuals is also increasing, of course not reach the volume of transactions made by EU, but its growth has been amazing with 45.7% increase in 2015, and which places Chinese citizens over other nationalities most traditional in the region as Dutch, Swiss and Danish.
How to increase Chinese investment?
While we have already mentioned that Chinese investment in the region has been growing, both in private and in large-scale projects, the fact is that most Chinese prefer other cities in Europe, and even other cities in Spain as Barcelona , Madrid or Valencia.
However, Spain does not have the same tourist promotion and much less real estate in China, as have other countries like Germany, the UK and Portugal, the latter adapted its migration facilities to encourage such investment. Therefore, the Spanish government must do with tourism agencies and real estate agencies, campaigns to promote Spain in Asia if they really want the investment of these citizens.
While it is true that language is a major obstacle to improving relations of Chinese citizens with the Spanish culture has been the biggest drawback, because the Chinese to Spanish culture and the Spaniards do not fit are not related to customs Chinese. Added to this is, politically recent problems between the two countries continues to open the gap to consolidate the union.
Asian investment in Spain
In Madrid, the Chinese are leaders clearly, since one of the conditions set by the Spanish government for Chinese citizens to acquire their residence through the Gold visa, is buying a property whose value exceeds 500 000 euros, which restricts some possibilities. Therefore, buyers focus on luxury properties in the most exclusive areas of the city, where most departments acquire exceeding 100 square meters, ie, properties of good size, being very attractive capital.
For the same reason they include the Basque Country, Barcelona and Valencia, cities with airport facilities and connections also have flight to Beijing or Hong Kong. Another reason is that beyond luxury seeking, it was found that Chinese enjoy more shopping to sightseeing above be performing on a coast beach activities.
The purchase of real estate by foreigners, not only by Chinese, has increased in Spain after the housing crisis of 2009. However, although investment in Spain by Chinese increased by 49% over the last year , and is expected to continue to increase for years to come, especially in the food industry as well as in real estate, still sector can not be compared with other European countries where Chinese investment exceeds the barrier of one billion dollars .
The country with the largest Asian investment on the continent, has been France, with a figure that reaches and passes the 7 billion dollars, another great in the European economy that has great investment is Germany, with an investment of 6.2 billion dollars . What they have in common these nations are the largest economies, however, this can not be taken as a standard, since other countries like Portugal, has investments equaling the amount of Germany, Hungary has also been important also for Chinese and even Greece, the country hardest hit by the economic crisis, investment exceeds one billion dollars. The fact that this difference between Spain and the rest of Europe, can be justified among other things, the opportunities provided by the Spanish government to Chinese citizens to immigrate, that are quite unique.
The growth of investment by Chinese in the region has increased but can grow further. Therefore, the Spanish government has initiated the approach mainly with Chinese companies to bring their capital to the country, and Marbella, being one of the most attractive cities, is one of the main sources of investment.
Although the Chinese have a certain pattern of tourism, this may change slightly to facilitate the entry of these citizens to the country, and thus are allowed to know the beaches and attractions of the Costa del Sol, in addition to the large number of shops that exist, which is the main reason why the Chinese invest or sightseeing in a city.
Written by: CAPD
Contribution to the reader: provides information about the interests of Asians in Spain, which cities they prefer and investing here. It also shows what has been the activity of Asians in Marbella and what the easiest for the entry of foreigners into the country methods are. Besides real estate projects with Chinese investment they are shown.