How the demand for housing in Spain is changing: an overview of foreigners’ interest
The pandemic has changed trends in the real estate market in Spain. The country has significantly increased the demand for housing by foreign nationals. This is evidenced by the figures: in 2021, non-residents purchased 111,743 objects. Such values are 52% higher than in 2020 and 9% higher than in 2019.
According to the data from the Association of Notaries, the demand for residential real estate in Spain by foreigners has exceeded the pre-pandemic period. Last year the proportion of transactions with such buyers was 17%, and in 2020 it was at 16.5%. The record year for the demand for Spanish homes from foreigners was 2015 when transactions with them amounted to 20% of the total number of contracts of sale.
The British citizens show the greatest interest in the local real estate. In the past period, they have purchased 12 186 objects, exceeding the previous figures by 12%. In second place are the Germans, who bought 10,868 housing units in Spain. Here, the annual increase in the number of transactions amounted to 81%. According to experts, if the dynamics of the market remain at current levels, then by the end of the year the citizens of Germany will become the buyer-leader in the Spanish real estate market. In addition to the Germans and the British, growing demand for local property by the Moroccans, Italians, and the French. The citizens of Sweden, Belgium, Romania, and China are also actively acquiring houses and apartments.
The greatest interest among foreigners is real estate located in Valencia and near it. There are 29 thousand deals have been held here for the past year, which is 40% higher than previous results. Houses and apartments located in Andalusia are in demand, there 22,625 housing units were purchased, an increase of 53% over the year. According to the analysis, about 90% of total foreign demand is concentrated in six regions of Spain, in addition to those mentioned, this includes the Canary Islands and the Balearic Islands, Catalonia, and Madrid. The largest jump in demand is seen in the Balearic Islands – the number of transactions there has grown by 77%.
In terms of evaluation of foreign purchases in terms of their value, the Swedes spent the most on Spanish property. On average, they gave 2760 euros per square meter of housing. A little less spent by citizens of Denmark, Switzerland, and Germany. The British bought houses at below average rates – 1890 euros per square meter. Budget proposals were made by Romanians and Moroccans.
Demand from foreigners, in addition to a number of factors, due to the possibility of remote work, which appeared during the pandemic. In addition, property prices in Spain are quite affordable, compared to most EU countries.