Foreign buyers continue to shape Spain’s housing market

by Lorraine Williamson
foreign buyers

MADRID – Spain’s appeal for foreign home buyers endures, despite a 5.6% dip in home sales in Q2 2023 compared to 2022’s record year. Even with the decline, sales could surpass half a million this year. Foreigners played a significant role, accounting for nearly 15% of all sales or over 22,700 transactions. 

This Q2 figure is second only to Q3 2022, when foreigners made up 15.9% of all sales, according to the Property Ownership Register (Colegio de Registradores de la Propiedad). It also ranks as the fourth-best quarterly performance since 2022. Foreign residential sales have consistently topped 20,000 transactions since Q1 2022. 

Sustained demand 

“Demand from foreigners remains robust,” stresses the Property Register’s report. “This strong interest ensures high transaction volumes.” 

British lead the way 

In a changing economic landscape with high inflation and interest rates, British nationals remain Spain’s primary homebuyers. They closed almost 2,000 deals between April and June, although their share fell below 9% for the first time. Historically, Britons have dominated this sector, with a peak near 25% in 2015. 

Cogesa Expats

Other notable nationalities 

Other key players in Q2 2023 include Germans (7.25%), French (6.56%), Moroccans (5.37%), Italians (5.22%), Romanians (5.15%), Belgians (5.09%), and Dutch (4.61%). All these groups bought more than a thousand homes. Lesser players like Poles, Russians, and Chinese also increased their shares. 

Geographic preferences 

Foreigners favour the Mediterranean, the Balearic Islands, and the Canary Islands. Alicante leads with foreigners making up 44.67% of sales, followed by Santa Cruz de Tenerife (38%), Málaga (32%), and the Balearic Islands (30.38%). In cities like Girona, Murcia, and Las Palmas, they account for more than 20% of transactions. 

Also read: Foreigners are most interested in property in these Spanish places 

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