Has the Spanish housing market hit rock bottom? Data shows that the average price of homes sold in June this year was 1,206 euros per square meter, a 13.3% decrease compared to the same period last year, and this downturn may continue for some time.
At the same time, low housing prices have attracted a large number of foreigners to buy Spanish property at the bottom of the market. Of the 1.6 billion euros spent by foreigners on Spanish real estate in 2012, Chinese buyers accounted for approximately one-third. Spanish real estate offers permanent property rights, has no inheritance tax, and can be passed down through generations for permanent ownership. Furthermore, entering the market now coincides with low housing prices, and most buyers are confident in future appreciation, especially many Chinese buyers who are taking out loans to purchase property as an investment for their children's future.
According to local Spanish real estate agencies, there are three main categories of Chinese buyers purchasing property at the bottom of the market: the first category consists of Chinese business owners who have some savings but do not own a home, making this the perfect time to buy; the second category is for their children. Previously, when children were young, it was acceptable to squeeze into one room, but as children grow older, it is no longer appropriate for them to share a room with their parents; the third category is for investment purposes due to the low housing prices in Spain. Many Chinese business owners operating in the suburbs, when financially capable, purchase properties in the city center as a second home, which can be rented out for income or used for retirement in the city when they are older.
Currently, the most popular properties among Chinese buyers are those priced under 100,000 euros and those repossessed by banks due to mortgage defaults. These properties are generally priced lower, fitting the investment needs of Chinese buyers.
