Germans Buying Property in Spain
In this blog I want to look at the place of Germans in Spain’s residential tourist market and what they are buying and looking for here in Spain. The market of German people purchasing property in Spain has been a healthy one for many years, German capital and tourists helped to create the Spanish residential tourist boom. As an example of this, and before we get to the facts and figures, a short story of a chance incident involving a car in the late 1940’s. A spot of engine trouble with his Rolls-Royce forced the German playboy and entrepreneur Prince Alfonso Von Hohenlohe to make an unplanned ‘pit stop’ in Marbella where his royal Uncle lived. Von Hohenlohe was captivated by the town and saw its potential as a tourist destination. He bought land and set about building the luxurious 5-star Hotel Marbella Club, convinced that other wealthy Europeans would be equally bewitched by Marbella’s unique qualities. The rest as they say is history.
The runaway success of the German economy and the price differential of what a Euro can buy in Spain compared to Germany, is boosting the Spanish housing market. The data from the Land and Mercantile Registrars Association of Spain (Registradores de España) shows that; in the first quarter of 2018, Germans were in second place of nationalities of foreigners purchasing property in Spain, rising from third place, behind the British and French 2017. Of all of the property bought by foreigners in Spain during the last decade the Germans have bought around 7%. They mostly buy used housing, 84.30%, compared to 15.70% of off plan or new housing. Dwellings of greater average surface area (> 100 m²) usually have buyers corresponding to nationalities with greater purchasing power, as well as the fact that the nationalities buying housing in Spain for residential purposes opt to a greater extent for housing with intermediate surfaces (among 60 and 100 m²). Of German purchases up to 40 % are larger than 100 m2, and 20% between 60-80 m2.
This purchasing power obviously supposes lower needs of financing which is demonstrated in the mortgage statistics in the Registrars data. Germans like to enjoy their wealth and status evidenced by very precise requirements when choosing and favouring spacious properties with high quality materials and luxury finish. They attach great importance to the price and value and want to high quality finishes with materials such as marble, parquet or steel. In their search for excellence they often seek houses on the beachfront and other valuable features, such as: hospital, educational, security and commercial services. The profile of Germans buying in Spain is generally of married couples over 40, professionals with children with high incomes, like any profile, there are exceptions. They have the highest standards in selection of properties and in our experience as lawyers, they expect clear a transparent system.
As the German economy continues to grow and the ‘baby boom’ generation (the richest generation ever) grows to retirement age (in Europe’s richest country) we can expect continued growth in the number of German people coming to live in Spain. Here at My Lawyer in Spain, we have German Lawyers, translators and all of the information needed for German people to make successful purchases to give everything from happy holidays to a complete life in Spain. So even if you are only thinking of buying in Spain, come and speak to us first.
