Britons have started purchasing overseas property again, as the cost of living remains low in the UK. The majority of foreign property buyers in Spain are British.
Of all properties sold in Spain in the first half of the year, overseas buyers purchased 12.7%. Of these, 19.8% were sold to Britons, according to the Spanish equivalent of the Land Registry, the Colegio de Regisradores.
At present, 750,000 British people officially live in Spain. The most popular areas to buy homes are the Balearic Islands and Canary Islands, followed by Murcia, Andalusia and Catalonia.
As Spain was badly hit by the global economic crisis, house prices fell significantly.
Therefore, Brits have been encouraged to invest there, where they will also enjoy a warm climate, relaxed lifestyle and stunning coastline.
Additionally, the UK’s sky-high property prices are another reason to move abroad. In London, the average house price is £513,000, reports the Office for National Statistics. This is around 40% higher than the peak recorded before the financial crisis.
Brits aged 55-64 are most likely to buy abroad, at 43%, followed by those aged 45-54, at 31%.
Although many buyers will be attracted to Spain’s low house prices, Brits are also buying luxury properties abroad. According to Tranio.com, a leading overseas property broker, Brits are often the buyers of homes worth €800,000 or more.
The majority (90%) of Spanish property priced over €1m is bought by foreign purchasers, says Spanish Property Insight.
Data shows that 16.7% of registered homes in Spain belong to UK citizens, with 10.3% owned by the French and 7.5% by Russians.
Those considering a move to Spain should look into a good expat property insurance policy, to cover their new investment.