The Spanish real estate market has experienced a remarkable resurgence in recent years, largely driven by increasing foreign investment. According to the Real Estate Yearbook of the Property Registrars, the number of transactions carried out by foreigners has significantly increased, surpassing 85,000 homes acquired in Spain during the year 2023.
This increase in foreign demand has been a consistent trend over the past three years, marking a positive change after a period of decline during the years 2017-2020, in which the global pandemic significantly affected the real estate market. The collected data reveals that foreigners represented 15% of the total home purchases in 2023, a notable increase compared to the 13.8% recorded in 2022.
The nationalities of foreign buyers have also undergone significant changes. While the British maintain their position as the main buyers, accounting for approximately 9.5% of the total transactions, other nationalities such as Germans, French, Moroccans, Belgians, and Italians are gaining more weight in the market.
In terms of location, certain regions of Spain have emerged as popular destinations for foreign real estate investment. Provinces such as Alicante, Santa Cruz de Tenerife, and Malaga top the list, attracting a large number of international buyers. In Alicante, for example, transactions made by foreigners represent almost half of the local real estate market.
The data also reveals that foreigners tend to prefer certain types of properties. Homes of over 100 square meters are the most popular among international buyers, accounting for 34.5% of all transactions. Additionally, used properties are particularly attractive to certain nationalities such as the French, Argentines, and Irish.
An interesting aspect is the increase in the number of property purchases with a value exceeding 500,000 euros. This segment of the market has experienced significant growth, with an increase of 8.13% in the last year. Regions such as the Balearic Islands, the Community of Madrid, Andalusia, and Catalonia are the main beneficiaries of this trend, thanks to their already high prices and attractiveness to high-net-worth foreign investors. Moreover, with an investment exceeding this amount, the golden visa was previously obtained by default, which has prompted such high-standing real estate investment. We will see how the market evolves with the new legislation by which the visa will no longer be obtained through investment in real estate. What is certain is that Spain remains an attractive destination for international investors seeking opportunities in real estate.
Article by Dust and Sand Luxury Homes
