April 14, 2024 3:10 pm
Foreign buyers break new record in home purchases, acquiring 15% of houses sold in 2023

Foreign home purchases in Spain reached a new high last year, with over 87,000 houses sold to non-Spanish buyers out of a total of 583,000 transactions. This represented nearly 15% of the homes sold and was a record in the historical series. Despite a decline in the three most common nationalities buying houses in Spain – British, German, and French – three communities in the Mediterranean region saw significant growth in foreign purchases. The latest Real Estate Registry Yearbook revealed that Murcia, the Valencian Community, and Catalonia all experienced an increase in foreign buyers.

The Balearic Islands remained the top destination for foreign buyers last year, with 31.5% of total home purchases coming from non-Spanish nationals. However, four communities saw a decrease in their market share due to factors such as rising housing costs and increased competition from other regions.

Alicante led the provinces in foreign home purchases last year, with almost 44% of homes sold to non-Spanish buyers. The British remained the largest group of foreign buyers, followed by Germans and French. Other nationalities such as Moroccans, Belgians, and Italians also saw an increase in home purchases.

The distribution of foreign purchases points to various factors such as tourism, retirement in Spain, and a growing labor market attracting migrants. The Canary Islands saw an increase in Italian activity last year while France dominated the market in Catalonia.

Despite rising housing costs and declining sales of homes priced over half a million euros last year, the real estate market continues to attract foreigners with diverse nationalities contributing to its growth.

Foreign demand has been a significant factor in the strength of the housing sales market in Spain over the past two years after a period of decline. As more people choose to purchase homes abroad or retire there permanently or semi-permanently it is likely that this trend will continue well into the future.

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