Foreigners are taking over real estate in Spain – record sales
In the third quarter of 2023, transactions with foreigners accounted for 15.44% of total sales, the second highest figure on record. The most active buyers were the British, accounting for 10.11% of sales volume, followed by the Germans in second place (7.01%), and the French in third (6.72%).
Interestingly, the most expensive real estate is bought by Ecuadorians and Chinese, at an average of €5,066 and €3,363 per square meter, respectively.
Since July last year, interest rates on mortgage loans have risen sharply in the eurozone, which could not but affect the real estate market.
The number of transactions and the issuance of loans in Spain by September 2023 decreased by 23.7% and 29.6% over the previous eight months.
Despite this decline and the rising cost of loans themselves, house prices in the Kingdom continue to rise, highlighting the imbalance between supply and demand.
Market experts note that the demand for housing among resident foreigners is declining more slowly than among local residents. This trend is particularly noticeable in the Kingdom's island territories and some coastal areas of the Mediterranean.
The high demand for Spanish property among foreigners can be explained by the aging population in wealthy European countries, coupled with high pensions and savings of older people. In addition, Spain's attractiveness to digital nomads and its competitive advantage in tourism are important.