A report shows 15 percent of property purchases in Madrid are by overseas buyers. Many Spanish residents face eviction from their homes for defaulting on their mortgages.
CCTV’s Dan Whitehead filed this report from Madrid.
Foreign buyers eye luxury homes in SpainA report shows 15 percent of property purchases in Madrid are by overseas buyers. Many Spanish residents face eviction from their homes for defaulting on their mortgages. CCTV’s Dan Whitehead filed this report from Madrid. Read more: http://www.cctv-america.com/2015/02/25/foreign-buyers-eye-luxury-homes-in-spain#ixzz3SsL5nihq
Foreign buyers of homes in Spain once seemed to focus more on the coastal towns there, but now they’re starting to buy up properties in the capital of Madrid. Real estate agents helping buyers from China and Russia said they see a big demand.
“Madrid is one of the favorite places in the world because of the safety and stability we have now. Fifty percent or sixty percent of our purchasers are Spanish and forty percent are international buyers,” Alberto Costillo at Knight Frank LLP said.
Other than wealthy investors who are increasing their housing portfolio, financial institutions are also buying bulk property in Madrid from failed Spanish banks.
Many in Spain are finding that along with the high rate of unemployment there, many properties dramatically fell in value. In Spain, if a home is repossessed, the owner is still liable for the outstanding debt.
Charities say that law is crippling families facing eviction.
“These people are bankrupt for all of their lives. They are victims of a very unjust system. They won’t be able to rent a house again in their lives, because hey have a debt with the bank, they won’t be able to find a job, they won’t be able to do anything with this debt,” Lucia Lois at PAH housing charity said.
The number of evictions and repossessions is now reportedly stabilizing as banks adopt a more flexible approach to debt restructuring.
David Roman of Wall Street Journal discusses Spain real estate
One government initiative to boost foreign investment is called the Golden Visa. Non-EU residents can qualify for residency by purchasing a home worth at least 500,000 Euros, or $570,000.
CCTV’s Rachelle Akuffo spoke to David Roman of the Wall Street Journal about whether this initiative is working.