The Costa del Sol's real estate sector is in a state of alarm following the central government's announcement to eliminate the Golden Visa, a programme that has favoured foreign investment in luxury properties since 2013. Ricardo Arranz, president of the Andalusian Federation of Developers and Residential Tourism, described the measure as ‘nefarious’ and warned about the possible flight of investors to other European destinations.
Arranz pointed out that the Golden Visa has attracted numerous high net worth investors to Madrid, the Costa del Sol, Palma de Mallorca and the Canary Islands, fostering the creation of employment and wealth in these areas. It suggests that, instead of eliminating it, the investment threshold should be increased from 500,000 euros to 750,000 or 1 million euros to continue to encourage quality tourism.
Violeta Aragón, secretary general of the Association of Builders and Developers of Málaga, and José Carlos León, president of the association of real estate agencies The Leading Property Agents of Spain (LPA), agreed that the elimination of the Golden Visa sends a negative message to foreign investors. Although the number of transactions under this programme has not been significant, they consider that its elimination creates uncertainty and could deter future investors, especially from emerging markets such as China, Russia, Arab, US and Canada.
Both representatives underline that the measure will not contribute to lower house prices, as the factors affecting the luxury market are different from those affecting the general market. They also criticise the lack of communication and consensus between the government and the sector before announcing the measure and call for stability and legal certainty to maintain investor confidence.
Source: Málaga Hoy. María Jesús Serrano el 08 abril, 2024.