The first half of 2023 witnessed an intriguing phenomenon in the Spanish real estate market: foreign home acquisitions accounted for 21.4% of the total transactions, despite a 7.5% decline compared to the same period the previous year. What truly stands out in this scenario is the average price that foreigners are willing to pay, with a rate of 2,095 euros per square meter. This figure marks the highest recorded since late 2008, even surpassing the average price paid by Spanish citizens, which stands at 1,574 euros per square meter.
Despite the decrease in transactions among non-residents, their willingness to pay higher prices has led to a 1.4% year-on-year increase in the average price per square meter. It’s evident that the allure of real estate investment in Spain remains robust, and Sitges, with its coastal charm and laid-back lifestyle, is no exception to this trend.
Out of nearly 68,000 property transactions carried out by foreigners during this period, 56.8% were made by foreign residents, while 43.2% were conducted by non-residents. Despite the decrease in transactions among non-residents, their willingness to pay higher prices has led to a 1.4% year-on-year increase in the average price per square meter.
The boom in Sitges’ luxury real estate market has attracted investors from various nationalities, contributing to the price increase in the region. Among the nationalities that stand out for paying higher prices for their properties in Spain are Swedes and Danes, who have reached historic highs, with 3,036 and 2,930 euros per square meter, respectively. Americans, Swiss, Germans, and Norwegians have also recorded notable prices per square meter, reflecting the diversity of international buyers in Sitges.
On the other hand, some nationalities pay more affordable prices, such as Moroccans, Romanians, and Ecuadorians, although they are the most prominent nationalities among foreign residents. In regions like Galicia and the archipelagos, Portuguese, Germans, and Italians are the main buyers. This highlights the diversity of nationalities choosing to invest in Sitges’ luxury real estate market, contributing to its continuous growth.
As for the British, who have historically been the main property buyers in Spain, they purchased at a slightly lower price than six months ago, but still exceeded 2,000 euros per square meter for three consecutive quarters. This group of buyers is iconic in Sitges, and their consistent interest in the region is a testament to the allure it offers.
A surprising fact is that non-resident foreigners continue to pay higher prices for their homes, with an average of 2,598 euros per square meter, significantly surpassing resident foreigners, whose average is 1,676 euros per square meter. This may be due to their preference for luxury homes, second residences, or rental investment properties.
This year, property prices bought by foreigners have reached their peak in Madrid and the Canary Islands. The Community of Madrid, with an average price of 3,130 euros per square meter, and the Canary Islands, with 2,378 euros per square meter, have seen a significant price increase. This is particularly relevant for Sitges’ luxury real estate market, as many international investors seek exceptional properties in this coastal region.
In Andalusia, non-residents have not paid as much for their homes since late 2008, and they have exceeded 2,000 euros per square meter on average for four consecutive quarters. This indicates a strong interest in luxury property investment on the Andalusian coast, which could extend to Sitges in search of high-quality properties and a Mediterranean lifestyle.
The regional distribution of home purchases by foreigners is an interesting factor in Sitges’ luxury real estate market. In 13 autonomous communities, prices paid by foreigners increased, while they decreased in four. The largest year-on-year increases occurred in Extremadura, Cantabria, and Murcia. The most prominent residential areas include the Canary Islands, Catalonia, Madrid, the Valencian Community, and Andalusia. These regions are particularly attractive to international investors looking for luxury homes.
However, prices fell in some regions such as Aragon, Navarre, Castilla-La Mancha, and Asturias. Despite these declines, the demand for luxury homes in Sitges remains strong, and the city’s natural beauty and welcoming atmosphere make it a top-notch destination for international investors.
Sitges’ luxury real estate market, with its Mediterranean charm and the diversity of nationalities involved, continues to be attractive to foreign investors. Foreign investment continues to drive up prices, and the interest in luxury properties in this region is steadily growing. The diversity of nationalities and the range of options available make Sitges a standout destination for luxury real estate investment. The scenic beauty of the Mediterranean coast of Sitges and its exceptional lifestyle make this city a truly special destination for real estate investment.
Article by Dust and Sand Luxury Homes
