Else Beekman
Spain has long been a favoured destination for foreign property buyers. Traditionally, European investors dominated the market. Yet, recent trends indicate a dramatic surge in property acquisitions by South American buyers, with purchases increasing by an astonishing 325% over the last decade.
South Americans bought just 988 properties in Spain in 2014. By 2024, this figure had risen to 4,198, according to a report from the Spanish Association of Registrars. This marks a significant shift in the composition of foreign buyers in the Spanish real estate market. Nevertheless, their impact on the total is small. Notary data shows that in the first half of 2024 non-resident non-EU buyers purchased only 2.5% of all homes sold.
African buyers lead among non-EU nationals
South Americans are rapidly increasing their presence in the market. However, African buyers, the majority from Morocco, remain the most active non-EU purchasers. In 2024, citizens from Africa acquired 6,431 properties in Spain, followed closely by Asian buyers, who secured 5,331 transactions.
Despite these trends, British and German buyers continue to hold the top positions in overall foreign property purchases. However, their investments tend to be in second homes, whereas South American and North African buyers are more likely to be purchasing primary residences.
A migration boom fueling demand
This surge in property acquisitions aligns with Spain’s growing foreign population. According to the National Institute of Statistics, Spain’s total population reached 48.6 million in early 2024. That means an increase of more than 500,000 people in just one year.
More than 1.3 million people from South and Central America have a residence permit in Spain. Madrid and Barcelona account for 40% of the total.
According to data from the INE, there are more Colombians in Spain than natives of Badajoz, Pontevedra, or Zaragoza. Of all foreign communities, Moroccans remain the most numerous, followed by Romanians and Colombians. Colombians have seen the most significant population growth, with an increase of 124,566 people in 2023 alone. Peruvians and Venezuelans also experienced substantial demographic expansion.
Changing buyer profiles
The profile of South American property buyers in Spain has evolved significantly. In the past two years, an increasing number of high-net-worth individuals from Venezuela, Mexico, and Colombia have entered the market. Many of these affluent buyers are investing in Spanish real estate for residency purposes or to provide housing for their children studying in Spain.
This trend has led to rising demand for luxury properties, particularly in Madrid, Barcelona, Málaga, and Alicante. A study by Keller Williams indicates that the supply of properties valued at over €800,000 has increased by 150% between January 2019 and March 2024.
Also read: Neither British nor Germans: these foreigners buy the most second homes on the Costa del Sol