In the competitive world of real estate investment, Spain has emerged as a prominent destination, attracting investors from around the globe. With a capture of 2.060 billion euros in the second half of 2023, according to Colliers’ Global Capital Flows report, Spain ranks among the top four European countries for property investment, also featuring in the global ‘top 10’ destinations for real estate investment.
The global economic context, characterized by challenges such as inflation and changes in interest rates, has significantly influenced investment activity. However, Spain and Poland have been exceptions, maintaining sustained attractiveness for investors even in times of economic uncertainty.
According to the Global Capital Markets & EMEA Research study at Colliers, the year 2023 was marked by persistent inflation and rising interest rates in major European economies, with the notable exception of Spain and Poland, where relative stability was perceived. This suggests a solid confidence in the Spanish real estate market.
The prospect of lower interest rates in the second half of 2024 could further boost investment activity in the country. This expectation of economic and financial stability could spark increased interest from both domestic and international investors in the Spanish real estate market.
A key factor contributing to Spain’s attractiveness for foreign investors is the record price they are willing to pay for properties in the country. According to data from notaries, non-residents paid an average of 2,715 euros per square meter in the second half of 2023, marking a year-on-year increase of 6.1% and reaching the highest figure in the historical series.
This rise in prices has driven the total value of real estate transactions, with Spain recording a significant figure of 63,183 home purchases by foreigners in the same period. Although this volume experienced a slight year-on-year decrease of 10%, it remains a strong indicator of ongoing interest in the Spanish market.
Asturias emerges as a highlight in this landscape, recording a record number of home purchases by foreign buyers, surpassing 700 transactions for the first time. This increased interest in less urban and more rural regions suggests a diversification of preferences among foreign investors, who are seeking opportunities beyond traditional destinations.
Regarding the main foreign buyers, Britons continue to lead the ranking, closely followed by Moroccans and Germans. However, Colombians stand out, marking a historic record in the number of real estate transactions in Spain. This increase in Colombian interest, driven by factors such as the pursuit of quality of life and political stability, reflects the growing diversity of international investors in the Spanish market.
In summary, Spain consolidates its position as a privileged destination for real estate investment, thanks to its relative economic stability, competitive prices, and a diversified market offering opportunities in various regions of the country. With prospects for continued growth, the Spanish real estate market remains an attractive option for investors worldwide.
Article by Dust and Sand Luxury Homes
