The Diplomat
The presence of large Peruvian and Chilean buyers in the Spanish real estate market has grown significantly in recent months, in an attempt by large fortunes to diversify their wealth in the face of instability in their countries of origin, according to the portal Idealista.
Although the presence of buyers from Peru and Chile began to pick up speed in 2021, the turning point has occurred over the past year, especially since spring.
As explained to idealista/news by consultants, real estate managers and agencies, the social, political and legal instability of these countries, added to the high inflation in their economies and the evolution of the euro-dollar, have become a catapult for the operations of large fortunes in our country. With the aim of preserving their wealth, this profile is making inroads into domestic real estate through the direct purchase of homes for their enjoyment or as an investment, and through holdings in funds and companies. Madrid and the Mediterranean coast are the areas where they are investing the most.
Buyers have a preference for the prime areas of large cities and the Mediterranean coast. In other words, they are looking for quality properties in consolidated areas of Madrid, Barcelona, Valencia and Malaga. In the capital, for example, a highly sought-after location is the Salamanca neighbourhood.
For Luis Corral, CEO of Foro Consultores Inmobiliarios, “political and legal instability means that the wealthy classes are looking to preserve their wealth by investing abroad, with quality assets that deteriorate less and have more liquidity. The reason that for a time operated for Venezuela has now moved to other countries”.
For his part, Álvaro González de La-Hoz, managing director of Berkshire Hathaway HomeServices in Spain, another factor that is favouring these movements is “the evolution of currencies, which last year was marked by the parity of the dollar against the euro for the first time”. We observe,” he says, “that many foreign clients accumulate their savings in dollars, which encourages them to invest more here, obtaining large discounts when buying and with improvements in taxes and fees.
The experts consulted put another factor on the table: the attractiveness of the ‘Golden Visa’, the programme that gives residency to the buyer and his or her family nucleus for purchases of at least 500,000 euros.
