One In Every Five Spanish Homes Purchased By Foreigners In 2023
Spain News
Published: 17 October 2023 16:41 CET
In the first half of 2023, property transactions carried out by foreigners in Spain reached an all-time high, accounting for 21.4 percent of the total number of sales and purchases at the national level. However, this surge in foreign property transactions comes amidst a decline in the purchase and sale of freehold housing by foreigners, breaking a positive trend seen in the previous four half-year periods.
According to data from Spain's General Council of Notaries, non-Spanish individuals conducted a total of 67,983 property transactions between January and June in 2023. Of these, 56.8 percent were made by resident foreigners, showing a 3.4 percent decrease, while purchases by non-resident foreigners decreased by 12.4 percent. This drop in foreign purchases is attributed to several factors, including rising mortgage costs and soaring housing prices, which have also impacted the domestic market.
The purchase and sale of free market housing by foreign buyers increased in only four Spanish regions: Asturias (27.7 percent), Galicia (14.8 percent), Murcia (5.5 percent), and Valencia (1.3 percent). On the flip side, thirteen regions experienced a decline, with the Balearic Islands (-32.0 percent), Navarre (-19.7 percent), and Andalusia (-15.3 percent) seeing the most significant drops.
British nationals were the largest group of foreign buyers, accounting for 9.6 percent of total transactions, followed by Germans (8.1 percent) and Moroccans (7.3 percent). Meanwhile, the group of nationalities that includes all other non-EU foreigners made up 12.8 percent of transactions. Notably, sales by foreigners of all nationalities decreased year-on-year, but purchases by Russians (50.2 percent), Ukrainians (41.6 percent), and Americans (13.6 percent) increased compared to the first half of 2022.
The average price per square metre of property transactions carried out by foreign buyers in 2023 so far stands at 2,095 euros per square metre. Prices increased in fourteen regions and decreased in the remaining three. Extremadura (12.3 percent), Cantabria (11.1 percent), and Murcia (10.2 percent) saw double-digit price increases. The Canary Islands (8.4 percent), Catalonia (7.9 percent), Madrid (7.7 percent), Castile and Leon (6.1 percent), and the Valencian Community (5.2 percent) recorded more moderate growth.
Non-resident foreigners continue to pay higher amounts for their homes, with an average price of 2,598 euros per square metre, compared to residents (1,676 euros per square metre) and nationals (1,574 euros per square metre). Prices for non-resident foreigners increased by 2.8 percent year-on-year, while resident foreigners saw a 2.9 percent increase. Domestic buyers lagged behind with an increase of only 0.7 percent in the first half of the year.
The highest average prices per square metre were paid by buyers from Sweden (3,036 euros/m2), Denmark (2,930 euros/m2), USA (2,921 euros/m2), Switzerland (2,812 euros/m2), Germany (2,724 euros/m2) and Norway (2,584 euros/m2). The average price paid by foreigners as a whole (2,094 euros) was also exceeded by buyers from Russia, France, Italy, the Netherlands, Belgium and Ireland. The lowest prices were paid by Moroccans (689 euros/m2), Romanians (1,086 euros/m2) and Ecuadorians (1,335 euros/m2).
Among resident foreigners, Moroccans and Romanians were the main buyers in most parts of the country, except in Galicia and the archipelagos, where Portuguese, German, and Italian buyers were more prominent.
Despite a dip in foreign property transactions, the Spanish real estate market remains a popular choice for international buyers, with varied preferences and influences on different regions. As market conditions evolve, it will be interesting to see how foreign investment continues to shape the Spanish property landscape.
Article brought to you by Sanitas HealthPlan, leaders in expat health insurance in Spain.
Source
https://www.surinenglish.com/spain/foreigners-account-for-one-every-five-homes-20231013102314-nt.html
https://time.news/foreigners-buy-one-in-every-five-homes-sold-in-spain/
