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There is no question that cash rich buyers from Norway are today among the most prominent investors of overseas property in Europe. We will explain the socio-economic factors that have led to Norwegians becoming such major investors in overseas property in this article, but first, let’s talk about where they are buying.
Well, they are buying in Spain, of course. The last few years have seen interest from Scandinavian buyers in Spain rise to a new level. The Swedish interest in Spanish property has surged by 138% over the last 12 months, while the Norwegian interest has risen by 108%. And this comes at a time when Spain has been making a gradual recovery from the economic recession.
Real estate prices in much of Europe had bottomed out following the 2008 economic recession, and it is only now that they have started rising again. This is at a time with property prices in Norway are at a high.
What has also helped is that the Norwegian Krone is a very strong currency, so this gives investors from Norway extra buying power when they look to buy properties in Spain, Italy, Portugal or Greece, which are valued in Euros.
A number of Norwegians are buying properties in Spain, and to an extent in Portugal, Cyprus and Greek Islands such as Crete, Mykonos and Rhodes. They have been aided by the fact that property prices in these areas have dropped by 30 to 40 percent.
As Mark Pritchard, sales and marketing director of real estate developer Taylor Wimpey de España explains, “For years, Germans and Britons dominated the second home market in Spain but now the tables have turned towards Nordic buyers. Having recognised the popularity of Spain among this market, we have dedicated a lot of time and effort to these buyers. On the Costa del Sol, we saw a 31% increase in total September sales to Scandinavians, a growth of 150% over the same period last year.”
To understand the buying power of Norwegian investors, we need to take a close look at Norway’s economy. Norway is one of the richest countries in the world with substantial oil and gas resources in the North Sea. The difference between Norway and other oil-rich nations is that the Norwegian government has used these resources very smartly, to enrich the nation and to improve the quality of life of the people.
The oil wealth has trickled down to every Norwegian, and so the people of Norway have very high disposable incomes. Norway has a stable economy and low interest rates, and a strong currency. However, property prices here are among the highest in the world. Real estate prices in Norway have risen by over 250% since 2000. That’s why many Norwegians look to invest in properties abroad, rather than at home.
Norway has a very cold climate, which gets really bad during the winter. So there is a tradition in Norway to travel to the Mediterranean during this time. Costa del Sol in Spain, the Algarve in Portugal and Mykonos in Greece are hugely popular with Norwegian tourists, many of whom buy properties here.
Also, the people of Norway are highly educated, well travelled and know many languages. Many look to buy holiday homes abroad and look forward to opening themselves up to more diverse cultural experiences than what’s available at home.
They are very intelligent individuals, who wish to learn and experience new things in life. And they are fabulously rich too. This has led many cash rich buyers from Norway to look for holiday homes in Spain, Portugal, Greece, Cyprus and Malta. If you want to sell overseas property fast to cash rich investors from Norway contact us today.