MADRID – Spain is once again becoming the focus of American homebuyers, as the number of property purchases by Americans has hit a record high. According to a recent report by real estate portal Idealista, the number of US buyers in Spain has increased by over 25% in the last year alone, with no signs of slowing down.
The increase in demand for Spanish real estate from Americans is attributed to several factors. These include the country’s warm climate, rich cultural heritage, and excellent quality of life. The low cost of living and the favourable exchange rate which results in a strong dollar are also making Spain an attractive destination for American retirees looking to stretch their retirement dollars.
In addition, Spain’s excellent infrastructure, including world-class airports, high-speed train networks, and top-rated healthcare facilities, are all factors that are attracting American buyers. And with the country’s stable political and economic climate, Spain is seen as a safe and secure place to invest in property.
Real estate experts predict that this trend is set to continue, as Spain’s property market remains strong and resilient despite the challenges posed by the COVID-19 pandemic. In fact, Spain’s property prices have continued to rise steadily over the past year, making it an attractive investment option for foreign buyers.
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The interest of US citizens in homes in Spain could increase in the coming months since those seeking luxury homes are not affected by the increase in financing costs, which does hinder the operations of most families since they do not usually need a mortgage to buy a property.
Attracted by the Golden Visa
In addition, another tailwind, as highlighted by Idealista is “the fact that neighbouring Portugal wants to end the concession of Golden Visa and, therefore, that they reduce routes of entry to the European market. Although there are several EU countries that adopt this measure to attract foreign investment, in Spain, Greece and Malta the requirements are less demanding in terms of the amount to be invested”.
Portugal less attractive
At this point, it should be remembered that Portugal has also been a key market for US buyers in recent years. At the end of last year, they were the main foreign applicants to acquire a house in Lisbon, Porto, Cascais or Lagos. Furthermore, they are among the main foreign owners in the country, along with the British, Germans and Dutch. But the bill that has been approved by the socialist government of António Costa that wants to end the Golden Visa could impact future transactions in the country and, therefore, benefit the Spanish market.
However, all these factors will be subject to how uncertainty evolves. And it is that, as Idealista cites Engel & Völkers, “the luxury market moves with rules independent of the standard: it is more stable to economic changes and they rarely close with bank financing. But it is affected by general uncertainty, and despite that, it is practically not affected by interest rate increases.”
The increase in American buyers in Spain is a positive sign for the country’s property market, as it demonstrates foreign investors’ confidence in Spain’s economy and real estate sector.
Spain Ranked as the Second Most Popular Destination for American Expats
Spain has been ranked as the second most popular destination for American expats according to the latest data from the US State Department. The data reveals that over 76,000 Americans are currently living in Spain. The majority of expats reside in the regions of Catalonia and Andalucia.
Catalonia is home to the largest number of American expats in Spain, with over 8,000 Americans currently living in the region. This is followed by Andalucia, which has over 6,600 American expats. Other popular regions include Madrid, Valencia, and the Balearic Islands.