Lorraine Williamson
Increasing numbers of affluent foreigners are choosing northern Spain as a preferred location for luxury property investments. Factors driving this trend include climate change, attractive property prices, spacious homes, and greater privacy compared to traditional hotspots.
Luxury property sales from Galicia to the Pyrenees have notably increased in recent years. However, despite the growing interest, the north still lags behind areas such as the Balearic Islands or Málaga. Industry experts anticipate sustained growth as more international buyers recognise northern Spain’s advantages.
Rise in American buyers
The past year has witnessed a noticeable rise in American interest in northern Spain. Ana White, director at Knight Frank Spain, points to the turbulent political climate in the US as a motivating factor. Additionally, younger wealthy buyers prioritise the region’s exceptional quality of life, mild climate, and rich cultural heritage.
Competitive property market
One of northern Spain’s key attractions is its competitive property market. Buyers find exceptional properties for between €3 million and €6 million, typically surrounded by stunning natural landscapes. According to real estate expert Pérez, properties often sell at discounts between 3% and 10% below the asking price, providing an additional incentive.
Lower average prices per square metre further boost northern Spain’s appeal compared to other popular coastal destinations. This affordability factor is critical in drawing international buyers, offering more space and exclusivity.
Foreign buyers remain fewer compared to other regions
Despite growing demand, northern Spain still attracts fewer international buyers than regions like the Balearic Islands (32.6%) or the Canary Islands (27.23%). Currently, Asturias records just 5.8% foreign buyers, while Galicia remains even lower at 2.19%.
Property prices on the rise
A recent Engel & Völkers report highlights significant price increases in some northern areas. In Cantabria, average prices soared by 107% to €4,110 per square metre, while Pontevedra experienced a 44% rise, reaching €2,068. Nevertheless, these figures remain considerably lower than hotspots like Marbella (€8,650) or Ibiza’s Santa Eulalia del Río (€5,363).
Northern Spain’s growing popularity among international homebuyers signals a potentially transformative shift in Spain’s luxury real estate landscape.