Foreign Buyers Drive Property Purchases in Spain at Record Prices

Foreign Buyers Drive Property Purchases in Spain at Record Prices

In the first half of 2024, foreign buyers have once again turned their attention to the Spanish real estate market, purchasing one in every five homes in the country. According to data from the General Council of Notaries, between January and June, they acquired a total of 69,412 homes, representing a 1.8% increase compared to the same period in 2023. This figure accounts for 20.4% of all transactions in the Spanish property market.

A standout trend is the rise in the price paid per square meter, reaching historic levels. Foreign buyers paid an average of €2,249 per m², marking a 7.4% year-on-year increase, reflecting the rising costs in the Spanish real estate market. Particularly noteworthy are non-resident buyers, who paid an average of €2,895 per m², 11.4% more than the previous year.

Profile of the Buyers

Of the 69,412 homes purchased by foreign buyers, 58.2% of the transactions were carried out by residents in Spain, who saw a 4.2% increase in their purchases compared to 2023. Non-residents, on the other hand, accounted for 41.8% of the transactions, although with a slight 1.4% decline compared to the previous year.

The prices paid vary significantly depending on the buyer’s nationality. For example, Swedes paid an average of €3,330 per m², followed by Americans (€3,247 per m²) and Germans (€3,114 per m²). In contrast, buyers from Morocco, Romania, and Bulgaria spent much less, with average prices of €738, €1,158, and €1,281 per m², respectively.

Leading Nationalities and Key Areas

British buyers remain the largest group in terms of property purchases, representing 8.4% of acquisitions, followed by Moroccans (7.9%) and Germans (6.8%). However, the most significant increases in transactions have been among Polish, Ukrainian, and Colombian buyers, whose purchases grew by 28.5%, 20.8%, and 19.8%, respectively.

As for the regions preferred by foreign buyers, the British continue to lead purchases in Andalusia and Murcia, while Germans stand out in the islands. The French, meanwhile, are the main buyers in regions such as Catalonia, Galicia, and Navarra.

A Growing Market with Opportunities

This rebound in foreign property purchases, after several semesters of decline, reaffirms Spain’s appeal as a residential and investment destination. With rising prices and a wide range of nationalities interested in the Spanish property market, the opportunities for real estate agencies, both along the coast and in major cities, are vast.

 

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