The percentage of Scandinavian citizens buying homes on the Spanish coast is growing every year, making them one of the leading nationalities looking for bargain properties in areas like the Costa del Sol and the Costa Blanca. Between 2008 and 2010, the volume of Swedish buyers grew by over 138% with the average buyer looking for a two bedroom apartment with terrace and willing to spend about 160,000 euros.
Daniel Nilsson, the Regional Director for Spain of The Real Estate Agency, the leading real estate company in Sweden said, “the Swedes have been buying in Spain since the 70s, but I think the interest has never been greater. The fall in prices has opened the market to new groups of buyers who previously could not afford to buy a home in Spain”.
The company, which has been operating in Spain since 2008, says that home sales to Scandinavian citizens during 2012 soared by 90% in areas such as the Costa Blanca and the Costa del Sol. “The climate and quality of life in these Mediterranean areas are the greatest guarantees offered to foreign investors,” said Nilsson, and highlighted four destinations as the most popular: Torrevieja, Nerja, Marbella and Fuengirola.
Expansión.com reported that the boom in Swedish buyers is due to two factors – the fall in prices the properties are experiencing, especially holiday homes in Spain, as well as the good economic situation in the Nordic country. “Another factor is the increasingly better communication, with several direct flights daily from Alicante and Malaga, allowing buyers to enjoy their properties to a greater degree throughout the year,” explained Nilsson.
Besides coming from big cities, these buyers of Spanish property are, mostly, middle-aged couples (between 50 and 55 years), looking for a holiday home for their retirement. The Swedish real estate agency said that “80% of these buyers contact us via the Internet or in real estate fairs in Sweden. The majority take on a mortgage in their own country, sell shares, or buy with their savings”.
According to data from the General Council of Notaries, the average price of homes purchased by Swedish citizens was 252,766 euros. In Andalusia, 29.4% of the purchases made in the first half of 2012 were non-resident foreigners. “The average sale price for us in 2012 was 164,000 euros, with large differences between different areas. For example, in Torrevieja, the average price is 114,000 euros while in Nerja it is 245,000 euros.”