30 per cent of new Spanish homes bought by foreigners

Spanish housing market confidence

Spanish property. Credit: natatravel/Shutterstock.com

A recent report by Aedas Homes highlights a significant trend, over a third of new properties are now being snapped up by overseas investors.

On the 2023 release of ‘The New Construction Home Buyer Profile’ by Aedas Homes, it was revealed that foreign investors are increasingly setting their sights on Spain.

Indeed, they constitute nearly 37 per cent of the clientele for new builds. This figure marks an 8 per cent rise from the previous year, with more than 600 of the 4,000 new properties sold going to international buyers.

Growing interest from abroad

‘This international client represents added value for the Spanish residential sector,’ states Pablo Rodriguez Losada, the Commercial and Marketing Director of Aedas Homes.

Losada points out that there’s a marked preference among foreign buyers for regions such as Levante, the Balearic Islands, the Costa del Sol, and the Canary Islands. The company has accordingly increased its presence in these areas to cater to the demand.

Central and Western Europe are the main regions from which international buyers come from, accounting for 42 per cent of purchases.

Eastern Europe follows with 29 per cent, then America at 13 per cent, British buyers at 7 per cent, Asia at 4 per cent, and the Nordic Countries at 3 per cent.

Poland, Holland, and Belgium are the top three countries of origin, followed by the United Kingdom in fourth place, and Germany in fifth, highlighting a diverse European interest in Spanish real estate.

Market challenges and opportunities

The real estate outlook for 2024 remains uncertain following the market’s post-Covid stabilisation. With the health crisis over, transaction volumes have remained steady. This consistency is crucial for the industry amidst a notable supply-demand mismatch.

Luis Rabassa, Executive Vice President of Petrus Grupo Inmobiliario, voices concerns over delays in government licensing and restricted access to real estate credit for developers. These factors contribute to the consistent rise in housing costs.

Jordi Tomas, CEO at Guinot Prunera, however, is optimistic about improved construction performance due to anticipated lower rates and financing costs. He also notes that a strong labour market is essential for encouraging purchases, though product shortages may limit price reductions.

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Written by

John Ensor

Originally from Doncaster, Yorkshire, John now lives in Galicia, Northern Spain with his wife Nina. He is passionate about news, music, cycling and animals.

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