2023-10-23 08:02:55
The appetite of Latin American fortunes for Spain, with Madrid at the center of the target, has not stopped growing in recent years, turning the capital, as some already say, into the “European Miami.”
After the Venezuelans and Mexicans, who have been very active in recent years, now it is the turn of Argentines, Chileans or Colombians.
Although the Latin American investor has always been interested in the Spanish real estate sector, for years the increase in its presence in Spain has been noticeable, especially in Madrid, its natural gateway to Europe.
Attracted by the cultural proximity to Spain, a common language, the quality of life and the security it offers, many Latin Americans are investing their money in Spanish real estate, which also has more competitive prices than other European capitals such as Paris, London or Berlin.
Although there are many who choose Spain as a refuge to secure part of their assets, others come to stay, incited by the economic and political situation in their countries of origin.
There are also those who are looking for an apartment for their children who come to study in Spain and those Latin Americans who have lived and worked in the country for years and who have decided to buy a home, although much more economical.
After the strong incursion of Venezuelans a few years ago, coinciding with the political and economic situation of the country, the clients that are most active at this moment come from Mexico, Argentina, Chile and Colombia, according to the sales director of Engel & Völkers Madrid , Sonia Catalán.
Sporadically, some Nicaraguans also stand out with high-value “tickets,” adds the CEO of Gilmar, Jesús Gil Marín.
Aimed at another housing segment, real estate agencies emphasize the acquisitions of Ecuadorians or Peruvians residing and employed in Spain who are seeking family reunification, explains the deputy general director of Donpiso, Emiliano Bermúdez.
Your purchase ticket can reach 5 million
In the case of Madrid, the arrival of Latin Americans with high purchasing power is very present who are looking for luxurious and spacious apartments that are not plentiful and for which they pay between 6,000-9,000 euros/m2, reaching a purchase “ticket” that ranges from 500,000 to more. of 5 million, says the Director of Studies at Pisos.com, Ferran Font.
It is very different from the prices paid by residents who work in Spain, whose purchases tend to be in the medium-low range.
According to real estate agencies, more than 2 out of every 10 home purchase and sale transactions are carried out by foreigners, with Latin Americans being the most active (19%).
The Salamanca neighborhood, the favorite
The Salamanca neighborhood has always been the favorite of Latin Americans who bought housing in Madrid, but currently it has found competition with Chamberí, Chamartín or Retiro, says Catalán.
They are also opening up to urbanizations, there are beginning to be Mexicans in La Moraleja, in La Finca, in El Viso and near Puerta del Sol, but their priority continues to be Salamanca and Chamberí, highlights Gil Marín.
From Laborde Marcet they also perceive an increase in interest in those seeking to invest in Barcelona. However, they do not usually opt for other locations, which are highly sought after by other foreign buyers, such as the Canary Islands, the Balearic Islands or Andalusia, acknowledges personal real estate purchasing advisor Iñaki Usain.
Without pressure from rising rates, they usually pay in cash
What professionals in the sector agree on is that they generally pay in cash and if they decide to apply for a mortgage it is not out of necessity, but because it is of interest due to fiscal or financial issues. For this reason, the rise in interest rates and the increase in the cost of financing have not made a dent in the acquisitions of “prime” assets.
The so-called ‘Golden Visa’, which grants residence permits for investments exceeding 500,000 euros in real estate assets, has helped to boost the sector, especially when it has been eliminated in neighboring Portugal, says Bermúdez.
Others, however, do not see it as a determining factor among Latin American luxury buyers since a tiny number of those obtain the ‘Golden Visa’, point out Engel & Völker and Iñaki Usain.
Despite the regulatory changes and legal uncertainty in the Spanish real estate market, foreign buyers seem not to have diverted their appetite for purchasing properties in Spain, acknowledge the Lucas Fox real estate agency.
However, those who are looking for housing as an investment, and who do not have a special predilection for one country or another, do take these factors into account, clarifies the CEO of Inviertis, Rebeca Pérez. Efe
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