Foreign buyers spent €3.6bn (£2.3bn) on buying homes in Spain in 2011, as they took advantage of significantly discounted properties, according to data supplied by the Bank of Spain.
The figures show that foreign property investment in Spain increased by 27% last year compared to the preceding year.
With Spain’s economy in turmoil and the housing market in disarray, owed largely to a major oversupply of homes, property prices have been in freefall, attracting more bargain hunters in the process.
The hike in property sales in 2011 marks a second consecutive year of growth in international investment with 2011 beating the total value of transactions in 2010.
Many property professionals believe that the rise in foreign investment activity is a sign that property market conditions are improving.
But with about 818,000 vacant homes on the market in Spain, the existing glut of properties is unlikely to be absorbed anytime soon, despite the recent rise in demand from foreign buyers.
Source International estate agent
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