Danish people like to own vacation homes in Spain and France.
The Danes do not only dream of going to the southern sunny coasts. Many of them turn their dreams into reality, buying their vacation homes.
Their interest leans towards Spain, but also towards France, for the purpose.
Thirty eight percent (38%) more Danes bought vacation homes during 2016, as compared to the critical year of 2008.
The number of Danes in Spain doubled during this period, whereas their number in France grew by 67%.
Skat data shows, how many of the so-called domestic taxpayers in Denmark own properties in foreign lands. According to the tax service, these are the highest indicators of vacation home ownership, since these permanently live in Denmark.
“This increase occurred after the crisis eased out. The people have profits and prosperity. Many use their capital to buy own residential properties. Denmark has a growing economy, but our interest rate is the same as was during the crisis. This means there is enough available money in the market”, says researcher-futurologist Jasper Bu Jenson of Fremforsk.dk, during a telephonic conversation from his family vacation home in Rhone Valley, France.
Nykredit is the only Danish mortgage company, which offers mortgage in Spain and France. Their business also demonstrates the growing interest in these areas.
“This high rate of growth, as compared to the one which we had. Increase in demand shows that business is going good in Denmark. We historically have a high rate of employment, have low interest rates, and the capital has returned to the places where foreign property buyers live”, says Mira Lee Nielsen, Nykredit’s chief analytical expert.
During the first half of 2018, Nykredit provided 17% more credits in Spain, as compared the whole of 2013. In France the growth rate was 5 percent for the one half of 2018, as compared to the whole of 2013.
According to Nykredit, Spain is more attractive because the prices are comparatively lower in Spain.
“Before the financial crisis residential property market was showing growth in Denmark, Spain and France, but following that the prices took a plunge. Currently prices in Denmark have gone up, French prices are also growing, but at the same time Spain is facing a dramatic dip in prices, forcing the market to slowly just rise to the surface”, says Mira Lee Nielsen.
Most of the Danes buy their residential properties near Cannes and Nice, in France, on the Mediterranean coast. In Spain you can see buyers on mainland around Malaga, as well as on the islands. Buyer groups are very inhomogeneous.
“Mallorca, Cannes, and Nice are expensive markets, so they usually attract younger buyers – from 30 years of age and up. Whereas it is the retirees, who buy property in mainland Spain, to have a place where they could spend their winter seasons. These are not rich people, but those who saved money for such purchases over the span of their lives”, says Mira Lee Nielsen.
When it comes to Mallorca, Nykredit usually provides credits ranging from 4 to 6 million Danish Krone, whereas when it comes to Malaga the amounts are around 1.2 million Danish Krone and higher.
Payment of pensions overseas.
- More and more Danish citizens are drawing their Danish pensions, overseas.
- From 2006 till 2016 this number increased by 71% (from 32511 to 55726 people).
- In 2016 the amount of Danish old age pensions, and premature pensions, paid to recipients overseas equaled 2.65 billion Danish Krone.
- Among the most popular countries are (number of citizens in that country in 2016 in brackets): Sweden (14745), Germany (7344), Norway (7007), Spain (4488), Great Britain (3053) and France (2411).
Source: Udbetaling Denmark.
The increase in the number of Danish citizens, who own vacation houses, is directly proportional to the number of Danish citizens drawing their pensions outside Denmark.
According to Udbetaling Denmark data, this number has increased by 71% and has reached 55726 from 2006 till 2016.