1. Understand the market 2. Find your property 3. Get experts on your side

The top 10 Spanish cities where foreigners love to buy properties!

05 Dec
2017

Automatic translation from Google translate:

 

The top 10 Spanish cities where foreigners love to buy properties!

Let’s analyse the foreigners real estate activity in Spain.

Where do they buy properties? In which cities, regions and Costas?

 

Up to end June 2017, according to the Ministerio de Fomento, there were 495.119 residential properties sold during the last year in Spain vs 435.816 one year before: i.e. a 14% growth!

83.757 of the properties sold during the last year in Spain were bought by foreigners, that’s about 16.9% of every transaction vs respectively 76.212 and 17.5% the year before. A 10% growth, not bad!

 

The real estate transactions in Spain are at the highest level since 2008 in fact!

Spaniards and Foreigners are very active, both are buying the most since 2008, check this chart:

 

As a reminder, here is the price evolution of the square meter in Spain during the last 20 years.

We wanted to dig deeper and have a more precise view, so we checked it from the “Costas” view, from the “Region” view and from the “City” view.

I. Foreigners real estate activity for all the Spanish Costas (& Islands) – last year up to June 2017

 

II. Foreigners real estate activity for all the Spanish regions – last year up to June 2017

As you can see on this chart:

 

The top 5 Spanish Regions for purchases by foreigners are:

  1. The Comunitat Valenciana with #24.379 transactions (29% of transactions by foreigners)
  2. Andalusia with #15.584 transactions (19% of transactions by foreigners)
  3. Catalonia #13.264 transactions (16% of transactions by foreigners)
  4. The Canary Islands #9.064 transactions (11% of transactions by foreigners)
  5. The Balearic Islands #5.910 transactions (7% of transactions by foreigners)

The region of Madrid represents 8% of the transactions made by foreigners (6.301 properties). You surely know that Madrid is the third biggest city in Europe.

Remember the infographic we did on the subject last year, it remains nearly the same in 2017!

Where are foreigners buying in spain? Infograhic

 

The top 5 Spanish Regions in terms of transactions growth are:

  1. Ceuta y Melilla with 67%
  2. Castilla y Leon with 31%
  3. La Rioja with 28%
  4. Castilla-La Mancha with 26%
  5. Aragon with 22%

As you probably saw, all those regions have with a very low transaction volume. Should it mean that: as prices are rising in general, people are more active in peripheral areas? Our view is that the low volume makes it not significant.

As a rule on those three diagrams analysing the foreigner’s activity, you will see that the lower the number of transactions, the higher the growth in transactions volume and vice versa.

 

III. Foreigners real estate activity for all the Spanish cities – last year up to June 2017

As you can see on this chart:

 

The top 5 Spanish Cities for purchases by foreigners are:

  1. Alicante with #18.847 transactions (23% of transactions by foreigners)
  2. Malaga with #10.761 transactions (13% of transactions by foreigners)
  3. Barcelona  #7.332 transactions (9% of transactions by foreigners)
  4. Madrid #6.301 transactions (8% of transactions by foreigners)
  5. The Balears #5.910 transactions (7% of transactions by foreigners)

The region of Madrid represents 8% of the transactions made by foreigners, yes for once, no beaches! You surely know that Madrid is the third biggest city in Europe.

Before picking a city for your holiday home, have a look at the monthly weather statistics on the top 20 Spanish Cities here:

Monthly Weather Statistics on top Spanish Cities

Monthly Weather Statistics on top Spanish Cities

The top 7 Spanish Cities in terms of transactions growth have a growth rate higher than 50%!!!

Palencia, Melilla, Zamora, Avila, Ceuta, Teruel and Segovia. (most are not on the chart as we kept only the top 20 cities in terms of transactions)

All on very low transaction volume. Once again, should it mean that: as prices are rising in general, people are more active in peripheric areas? We don’t think so, but yes foreigners are going further for bargains!

If you want to search further the real estate market on any Spanish city, read our summary paper here: Everything you ever wanted to know about the top 20 Spanish Cities real estate markets – More than 1000 reads

Finally, remember our infographic on which nationalities are actively purchasing properties in Spain.

Who are the foreigners buying real estate in spain? Infographic

 

Looking for an expert in Spain? Ask us directly!

Stéphane 

Senior analyst and strategist at HTBIS

Check the full HTBIS team here

FOLLOW US
SHARE with the colour icons at the bottom of your screen
print

Related Post

Translate