Record High in Foreign Home Purchases: Spanish Real Estate Market Surges in Growth despite Decline in Some Nationalities

Foreigners Break New Record by Purchasing 15% of Homes Sold in 2023

The Spanish real estate market has experienced strong growth in recent years, with over 583,000 transactions recorded in 2019. This was a 16% increase compared to the previous year and a record high for foreign home purchases. Despite the decline in market share of the three most common nationalities – British, German, and French – foreign buyers have never owned such a significant portion of the Spanish real estate market.

The increase in foreign home purchases was led by three communities in the Mediterranean area – Murcia, Valencia Community, and Catalonia. The Balearic Islands continued to be the most popular destination for foreign buyers, with over 31.5% of homes sold going to non-Spanish nationals.

Spain has seen two years of strong growth in real estate transactions after a period of decline due to factors such as increased tourism-related purchases, retirees relocating to Spain, and a growing labor market attracting migrants. Provinces like Alicante, Santa Cruz de Tenerife, and Malaga saw the highest percentages of foreign home purchases while some provinces had lower levels of foreign buyer activity.

In terms of nationality, British buyers remained the largest group of foreign purchasers followed by Germans and French buyers. However, other nationalities like Moroccans, Belgians, Italians also saw an increase in their real estate acquisitions in Spain. The distribution of purchases by nationality varied across different regions with Germans dominating the Balearic Islands market while British were more common along the Mediterranean coast.

Despite a slight decrease in homes sold for amounts exceeding half a million euros due to economic conditions but overall trend of foreign buyers in Spanish real estate market remains strong with diverse purchasers contributing to its growth across different regions.

Leave a Reply