Nordic Investors leading purchases in Galician Real Estate market

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Norwegians are those that have grown in Galician real estate 

An increasing number of people who are interested in a property on this coast, either to spend their days off and holidays, looking for a new home, or to buy property with the purpose of investing is higher. Galicia offers a variety of options.

While historically, the main European investors in Galicia, came mostly from the UK, this trend has changed drastically after the housing crisis occurred worldwide from 2008.

Over the past four years, it shows that while UK buyers have decreased by 65% ​​during this period, German investors have grown up to 3%, Norwegians by 108% and Swedes to an incredible 138%. However, the overall market is down 33% from its peak in 2007.

Nordic investors are those that have grown the most in recent years
Nordic investors are those that have grown the most in recent years

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, many previous British owners have successfully sold their property to the markets of Sweden and Norway in the last two years, especially in Nerja, which has proved very popular with Nordic customers.

What seek Europeans in Galicia?

In simple terms of the amount of land and what size, type and characteristics of the house you get, Galicia offers some of the best prices in Western Europe.

Galicia offers by far the lowest prices of land and houses, but if you want to add the proximity to the coast and to the cities and airports in equation then coastal Galicia remains a real bargain in comparative European terms.

The europeans prefer rural houses
The europeans prefer rural houses

There are, of course, other factors to consider. While most people do not buy a property primarily as an investment, the value of your property is also the freedom you have to sell and move elsewhere, withdraw equity, transmit inheritance, etc., and thus value the property is always important. If, therefore, an area seems unusually cheap it is necessary to ask why and then decide if the property in that area really is a bargain or cheap for good reason, so maybe it’s not a good investment.

The properties window in Galicia, can it reasonably be accused of bias, it is that someone from northern Europe in search of a holiday home or enough income to live and looking for a change of lifestyle, Galicia is a great place to shop and is now an excellent time to buy for the addition of the following reasons.

Galicia is characterized by an architecture where rural buildings predominate, however, this has been progressing and also can get buildings post modern, so it is possible to choose between a medieval-style castle to a modern apartment located near the coast. The same goes for prices ranging from a few thousand to million euros.

Galicia has historically been a place of settlement for Europeans since the eighteenth century, German immigrants, French, Italian and Portuguese settled in this land, which today are the most popular cities in the province, ie, Santiago, Vigo, a Coruña and Ferrol therefore visit these cities represents a walk to the history of the town and even across the country. Foreigners who came to this territory were part of the growth in the region hand in hand with industry blacksmithing, and of course, shipbuilding and fishing industries that characterize this province.

Today, the reasons for settlement of foreigners in Galicia are different from those of previous emigrants. European investors are currently seeking weather conditions, landscapes and diversity of activities that can be performed, in order to spend the summer, days off, find a retirement home for old age, or simply buy a property for investment purposes to future, since it is known that the real estate market is growing both in Spain and in Galicia, as a consequence an increase in the cost of property in the coming years is expected.

During the last quarter of 2014 with 96 properties as buyers of foreign nationals, of which 16.7% are from the UK they were acquired. The type of properties most sought after by foreign investors are the cottages, associated with the field are the most traditional in Galicia, and can be found in any of its four provinces, but mainly in Ourense is where the market is more taken over by houses of this type.

Rural homes are quite popular for European tourists who buy in order to make your holiday with his family, away from the city, quiet and close to countryside and nature. The English are followed by French, Russians, Germans, Belgians and Swedes, in short all these citizens reach more than 85%, making Europeans, foreign citizens with more real estate in Galicia.

For these reasons, this is the best time to finally decide to invest in Galicia, in addition to enjoyment may result in an investment that will capitalize soon.

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, along with an excellent cuisine based on seafood, make this town very attractive to tourists from all over Europe. 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. This explains that most investors in the region are of Nordic origin, English or Russian, looking to escape to a warm place and also is close to their home countries, making it easier and convenient getaway from the cold and routine.

Who buy in Galicia?

European buyers who invest in real estate in Galicia maintain the same profile as other buyers in Spain, of course, this varies according to country of origin, however, what they all have in common are their desire to enjoy ownership of all that Galicia has to offer.

Britons are the biggest buyers of properties in Galicia
Britons are the biggest buyers of properties in Galicia

The English, who have been the most traditional investors in the region and although the volume of buyers coming from the UK has been declining, these are those with greater number of properties on behalf of foreigners with 18.62% shopping yet . British buyers are usually both men and women looking for a retreat to enjoy his old age, mostly reach 60 years and often are married couples retire to enjoy a relaxed atmosphere that also offers excellent services health, transport and airport facilities with up to three daily flights to London airports and ferries to Portsmouth and Plymouth to move smoothly to their country of origin.

The Nordic buyers are similar to English in interests, looking for a place with excellent climate and where they can do outdoors, water sports, or just relax on the beach, especially in the summer. Scandinavian investors have aged between 45 and 70 years with high income.

Meanwhile, Russian buyers, differentiate the British and Scandinavians by the fact that they are younger than the others, with ages ranging between 30 and 45 years, dedicated to businesses and companies, and parents family looking for a property where they can spend their vacation with their children.

Other major buyers in Spain are the Belgians, who mostly also over 50 years and are entrepreneurs or executives of companies and also seek a place of good weather conditions where they can practice outdoor sports, and also is quite close to his country.

Know the real estate market in the region

The demand for real estate in Galicia began to resurge from 2014, where there were a total of 1324 trading operations in the region during the last quarter of that year in the main cities of Galicia. The fastest growing was the city of Vigo with 17.4% in the number of purchases, ie, 4.5 purchases per day in this city.

However, the market has been recovering, but still the property prices remain low, therefore this is the best time to buy property in Galicia, because as the economy improves, prices will increase due to increased demand.

According to reports from major banks, the property market in Spain has been stabilized since 2015, a process that started since 2012 with cities of great real estate movement and of great interest to foreign tourists as Mallorca, Marbella and the Costa del Sol, and then it spreads to Madrid, Barcelona and Valencia, and now also reached the green coast in Galicia.

Property prices in Galicia are extremely variable and movement within the same region, it is not constant as shown in A Coruña and Ferrol, where the price per square meter of the first, is more than twice the second. A Coruña and Santiago de Compostela, the most attractive for tourism are also are also the most cost whose value per square meter exceeds 2,000 euros, although the most expensive city in the region is Sanxenxo at a cost of 2450 euros per meter square.

The biggest drop in prices in the town occurred in Pontevedra and Ourense, located south, where the cost has fallen on average 2%, however, despite being localities with less movement in terms of real estate, it is expected that engage the growth rate this year.

Conclusion

While Europeans have been the biggest buyers of properties in Galicia, the trend has continued and British remain the largest investors. However, due to the prosperity of their countries, Swedes, Norwegians and citizens of other Nordic countries have grown in number of investments in the region and even are already moving the market to English and are expected to continue increasing for the future . The same applies to French, Germans and Belgians.

Written by: CAPD

Words: 1626

Contribution to the reader: know what the motivations of Europeans to invest in Galicia, which is the profile you have, and what is the nationality of most buyers are investors.

Main sources:

– galiciaguide.com/Property.html

– leadingpropertygroupspain.com/en/2012/04/swedes-and-norwegians-flock-to-buy-property-in-spain/

– leaderbcn.com/cn/rural-property-galicia-attracted-european-investors/

– espanarusa.com/es/pedia/article/242899

Secondary sources:

– finhelp.es/los-extranjeros-que-compran-la-propiedad-en-galicia/

– mydestination.com/galicia/travel-articles/72235/finding-dream-real-estate-in-galicia

– economiadigital.es/gles/notices/2015/07/el-mercado-inmobiliario-retrata-una-galicia-de-dos-velocidades-65549.php

– usc.es/revistas/index.php/ohm/article/view/567

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