The number of foreigners with a valid residency permit or registered in Spain at the end of the third quarter of 2009 rose to 4,715,757 people - an increase of 10% on the previous year.
According to the World Tourism Organization, Spain is second, after France, in the list of countries receiving the highest volume of foreign tourists, and receives 7% of world tourism, placing it ahead of the United States and Italy.
In the last quarter of 2009, foreign residents in Spain bought 7,340 residential properties, 21% more than in the previous quarter and 11.8% more than in the same quarter of the previous year, according to figures from the Ministry of Housing.
Property sales have finally increased once again after eleven consecutive quarters of decline. Between October and December of 2009, there was an increase of 4.1% in this key statistic which meant the first year-on-year rise since the end of 2006.
The rise of almost 20% in property sales in February, 2010, as a yearly rate since 2008, has raised hopes in the housing sector. The majority of experts consulted confirm that these positive figures are a reflection of the drop in prices, low rates of interest, the expectant hike in VAT and the end of tax relief. Although some of these strengthening factors cannot last in the long term, they will be replaced by other equally effective factors.
These experts affirm that the housing market will pick up soon, much quicker than expected, in line with the increase experienced in the second quarter of 2010 and in a much more discernable way during the remainder of the year. However, it will not show a total recovery as the main problem in the sector is the illiquidity of the amount of building plots, although there are now financers who are prepared to begin new projects and, above all, to once again finance responsible building developers.
In the days leading up to Easter, estate agents specializing in second homes claim an increase of 50% in requests from the British interested in their real estate offers, in particular along the Costa del Sol and in the Balearics.
In-bound tourists in Spain, 2009, by nationality:
TOTAL
Total 52.231.098
Germany 8.925.909
Austria 493.832
Belgium 1.596.899
Denmark 958.909
Finland 517.505
France 7.916.165
Ireland 1.458.149
Italy 3.181.561
Norway 887.224
Netherlands 2.094.632
Portugal 2.051.987
Great Britain 13.324.625
Russia 421.161
Sweden 975.775
Switzerland 1.141.224
Other Europe 1.800.280
USA 1.137.655
Argentina 295.538
Brasil 248.414
Canada 182.177
Chile 38.695
Mexico 238.235
Venezuela 39.160
Other American 498.900
Japan 228.572
Rest of the World 1.166.288
Source: IET www.iet-tourspain.es
In-bound tourists in 2009 classified by type of accommodation used:
TOTAL 52.231.098
Hotel & similar 31.968.791
Free accommodation (own,
Family etc) 12.166.803
Rented accommodation 4.666.959
Other 3.001.870
None specified 426.672
Source: IET – www.iet-tourspain.es
Written by Jesús Castro
Translated by Rachael Harrison
Duna y Valdevaquero, Tarifa (Cadiz), by Chodaboy; at flickr.com