Foreign Buyers Surge in Spain Post-Pandemic

Foreign Buyers Surge in Spain Post-Pandemic

The real estate market in Spain has seen a significant increase in foreign buyers, even surpassing pre-pandemic levels. Despite the challenges posed by higher interest rates and a global cost-of-living crisis, foreign investment in Spanish property remains robust.

Number of Foreign Buyers Exceeds Pre-Pandemic Levels

In the first quarter of 2024, foreign property purchases in Spain were up 37% compared to the five-year average before the pandemic. This remarkable growth highlights the enduring appeal of Spain’s property market. Although there was a 7% decrease in foreign purchases year-on-year, the figures are still 32% higher than in 2019, according to data from the Land Registry and reported by Spanish Property Insight.

Expat and Foreign Non-Resident Buyers: A Detailed Breakdown

The Housing Ministry’s data shows a nuanced picture. Expat buyers experienced a slight decrease of 1%, while foreign non-residents (FNRs), primarily purchasing second homes, saw a 4% decline. This indicates that while some buyers are cautious, the overall interest remains strong.

Regional Variations in Property Transactions

Different regions in Spain have seen varied changes in property transactions. The Canary Islands and Andalusia experienced the most significant declines, with transactions down 17% and 9% respectively. Conversely, Murcia stood out with a 7% increase, likely due to its more affordable property prices compared to regions like Andalusia and the Balearics.

Nationalities Driving the Market

Among foreign buyers, Irish and Ukrainian investors showed the most substantial increases, with growth rates of 11% and 8%, respectively. On the other hand, French and Russian buyers saw the most significant declines, at 24% and 20% respectively, followed by a 11% drop among British buyers.

Popular Regions and Locations

According to aplaceinthesun.com, the most searched areas for property in Spain remain consistent with previous years. Valencia, Andalusia, and Murcia top the list of popular regions, while Torrevieja, Estepona, Villamartin, Marbella, and Orihuela Costa are the most in-demand locations.

Why Spain Remains a Top Choice

Spain continues to attract foreign buyers due to its favourable weather, lifestyle, and affordability. The current sterling to euro exchange rate of 1.19 makes Spanish properties more appealing to British buyers. Moreover, the cost of living in Spain is significantly lower, being 31% less than in the UK. This includes restaurant prices, which are 40% higher in the UK compared to Spain.

FAQs

Why are foreign buyers increasingly interested in Spanish property?

Foreign buyers are drawn to Spain due to its favourable climate, attractive lifestyle, and affordable living costs. The advantageous exchange rate also makes it a cost-effective investment.

Which regions in Spain are most popular with foreign buyers?

The most popular regions are Valencia, Andalusia, and Murcia. Specific locations such as Torrevieja, Estepona, Villamartin, Marbella, and Orihuela Costa are highly sought after.

How has the property market changed since the pandemic?

The number of foreign buyers in Spain has increased by 37% compared to the pre-pandemic average, despite a slight year-on-year decrease.

What nationalities are most active in the Spanish property market?

Irish and Ukrainian buyers have shown the most significant increases, while French and Russian buyers have seen the largest declines.

 

Conclusion

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