Neither British nor Germans: these foreigners buy the most second homes on the Costa del Sol

by Lorraine Williamson
foreigners buy new build homes

The Costa del Sol is very popular among foreigners who want to buy a second home in Spain. The climate, the good connections, the Mediterranean lifestyle, and the various real estate options make the area very attractive.

In the past, it was mainly British and Germans who bought houses on the Spanish south coast. But according to real estate company Magnum & Partners – Engel & Völkers, it is now the Dutch who are buying the most new-build homes. In the last two years, the Dutch have bought twice as many houses as the Belgians and British. This is followed by buyers from Poland, Sweden, Germany, and the Czech Republic.

Substantial increase in sales to the Dutch

“This year’s numbers are particularly striking because they are so much better than those of 2022. In the first half of 2024 alone, sales of new-build second homes to Dutch people tripled compared to the whole of 2022, a particularly positive sales year due to the post-pandemic effect,” says José Carlos Pérez, CEO of the company. This is because many Dutch people decided to buy a house for retirement or to telework from a warm environment.

Profitable investment

In addition to the appeal of the Costa del Sol, the stricter tax legislation for second homes in the Netherlands also plays a role. As a result, many Dutch people opt for a second home on the Costa del Sol, where they can recoup their investment by renting out. “The Dutch are interested in buying a second home on the Costa del Sol to enjoy it for a few months. But the rest of the time, they want to rent out to make the investment profitable,” explains Magnum & Partners – Engel & Völkers.

Cogesa Expats

Preference for these places on the Costa del Sol

The Costa del Sol is a top destination for foreigners for a second home due to its climate, lifestyle, food, entertainment, and beach. The preferred locations for Dutch people to buy a second home in Spain are Estepona, Torremolinos, or Mijas Costa. Moreover, these are attractive places to rent out houses.

Impact of summer

In the summer months, sales of second homes to international buyers increase the most. From June to August 2024, sales to Dutch customers increased by 150% compared to the summer of 2023. This increase is roughly comparable to that of Belgian and Czech buyers. However, the British did not show an increase compared to last year.

Also read: Where in Spain do most foreigners choose to buy homes

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