Foreign money for Alicante homes

THE property boom might have faltered since the 2008 crisis but Alicante still sold 9,200 homes to foreigners in 2011.

Non-Spanish clients in the Valencian Community’s three provinces – Alicante, Valencia and Castellon – bought 10,730 houses and apartments worth €1,515 million, more than any other region.

This represents 30.6 per cent of the national total, with 80.7 per cent of sales corresponding to Alicante province alone.

Andalucia had the second-largest number of non-Spanish purchasers with 19.2 per cent of Spain’s total, followed by Cataluña (14.9 per cent) and Baleares.

The Valencian figures are well up on the €1,431 million realised in 2010 with 9,300 sales to foreigners or the €1,225 million and 7,400 sales in 2009.

Principal customers for Alicante properties came from Britain, Russia and Norway.

Fewer doubts over legality issues surrounding properties purchased in the region together with a sharp drop in prices thanks to the punctured property boom are amongst insiders’ explanations for the healthier figures.

Two regional government departments – Infrastructure and Economy – last year set up a technical commission to promote sales of second residence in Europe.

The commission, which includes representatives from chambers of commerce, property developers and official professional associations, is putting the finishing touches to a web page explaining the steps to take when buying a property.

Potential purchasers outside Spain can now find in one place all necessary information about their rights and obligations as property-owners together with advice on obtaining a mortgage and arranging contracts for utilities.

By Linda Hall