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Who are the foreigners buying properties in Spain? Our detailed analysis

11 Jun
2018
Who are the foreigners buying real estate in spain? Infographic

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Who are the foreigners buying properties in Spain in 2017?

Which nationalities are active? Are they resident or not? Where do they buy? What price do they pay?

 

1. Which nationalities are buying properties in Spain?

 

The Statistical Information Center of Notaries in Spain has just released its last report of Foreigners activity on the property market.

 

What was the activity on the Spanish real estate market in 2017?

  • 513.814 property transactions in 2017: 17% growth vs 2016.
  • property activity by spaniards accelerated by 17.4% year-on-year to 413,719 in 2017.
  • property activity by foreign buyers accelerated by 14.2% year-on-year to 100,095 in 2017.
  • This equals to 19.4% of all the property transactions that occured in Spain in 2017.
  • 46.8% of the transactions were carried out by non resident foreigners and 53.2% by foreigners living in Spain!

 

Spaniards and Foreigners are very active: both are buying the most since 2008:

Quarterly statistics of the “Ministerio de Fomento”.

 

Which are the most active nationalities within EU?

In the second half of 2017 the most active nationalities were :

  • the British (14.2%),
  • the French (8.6%),
  • the Germans (8.2%),
  • the Romanians (6.9%)
  • the Italians (6.8%),
  • the Belgians (6%).
  • and the Swedish (5.3%)

Representing 55% of all the real estate transactions purchased by foreigners in Spain in 2017 or 100.095.

 

Most active nationalities outside EU

The proportion of purchases was also high by foreigners outside the EU:

such as Morocco (5.5%), China (4.9%) or Russia (3.0%).

 

Don’t forget to hedge your currency smartly if you are buying from outside the European zone.

 

 

 

Here you go, a quick check of all the nationalities:

 

Which nationalities are buying more properties in 2017 vs 2016?

  • Morocco +36%
  • Ecuador +33%
  • Romania +31%
  • Portugal +30%
  • United States of America +27%
  • Belgium +22%
  • Germany +22%
  • Argentina +20%
  • Italy +20%
  • China +18%
  • Netherlands +16%
  • Russia +16%
  • Ukraine +13%
  • France +13%
  • Denmark +12%
  • Ireland +10%

 

Decreasing activity

Decreasing activity was only the case for the United Kingdom but, interesting to note, the second half of 2017 was better than the first half of 2017.

 

Here is the evolution of the purchases done by each nationality since 2008

 

 

This was the situation end 2016: we keep the same top 3 nations.

Who are the foreigners buying real estate in spain? Infographic

Foreigners living in Spain are more active

  • Foreigners living in Spain recorded 53.201 operations, 20.8% more than in 2016.
  • Non-resident foreigners bought 46.894 properties, an increase of 7.6% year-on-year.

This is quite a strong vote of confidence by foreigners living in Spain! Of course, they work there and it is easier for them to buy than non-resident foreigners. But HowtobuyinSpain is there to help you!

 

1. Best Professionals 2. Follow up 3. Competitive pricing 4. Partners 5. Qualitative Check

 

Check our chart analysing who is more active on the Spanish property market: Foreigners or Spaniards with the evolution since 2007 (year before the crisis):

 

 

 

2. Where are foreigners buying properties in Spain?

 

What are the main regions for foreigners – representing 88% of transactions?

  • Valencian Community with 28%
  • Andalusia with 18%
  • Catalonia with 15%
  • Canary Islands with 11%
  • The community of Madrid with 9%
  • Balearic Islands with 7%

 

 

 

What is the evolution for each region in Spain during the last 12 months?

Check the property transaction growth for each region in Red (right scale) with the number of transactions in Blue (left scale)

 

Most active regions – Biggest activity of foreigners vs Spaniards?

According to the “Colegio de Registradores de la Propiedad”, the Autonomous Communities with a greater weight of foreigners’ transactions vs Spaniards in 2017 are

  • The Canary Islands with 31.4% of all transactions,
  • The Balearic Islands with 31.3% of all transactions,
  • The Valencian Community with 26% of all transactions,
  • Murcia with 18.8% of all transactions,
  • and Andalusia with 13.8% of all transactions.

Check our interactive chart on that:

 

Most active cities – Biggest activity of foreigners vs Spaniards?

According to the “Colegio de Registradores de la Propiedad”, the cities where foreigners are the most active (vs Spaniards) in 2017 are:

  • Alicante
  • Tenerife
  • The Balearic Islands
  • Girona
  • Malaga
  • Las Palmas
  • Murcia
  • Almeria
  • Tarragona
  • Castellon

Check our interactive chart on that:

 

Which Spanish regions are the most popular for which nationalities?

We did the ranking for the 12 most active countries in Spain.

 

Check the evolution of the foreigners’ activity per region since 2007 (year before the crisis):

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

Where are foreigners buying in spain? Infograhic

 

3. What price do foreigners pay to buy a property in Spain?

 

Check the evolution of the price paid per region since 2007 by foreigners (year before the crisis):

The average price per square meter of operations carried out by foreigners accelerated to 6% year-on-year. The acceleration of prices was recorded both among non-residents (8%) and residents (5%), although the former paid higher prices than the second ones, € 2,027 / m² against € 1,420 / m², respectively.

This price discrepancy between foreigners living in Spain and not living in Spain could come from many factors:

  • Non-resident are buying a second home at more expensive locations
  • Non-resident who are buying have a higher purchasing power
  • Resident foreigners could decide to reside due to the low cost of real estate in Spain

You can check the evolution of the price per square m paid by foreigners (resident or not in Spain) and Spaniards (resident or not in Spain) since December 2007 (year before the crisis) on this chart:

 

In terms of levels, the average price per square meter for foreigners continued to register strong differences for autonomy. During the first half of the year, it was below the average
(€ 1,668) in 12 of the 17 Regions.:

Regions under € 800:

Extremadura, Castilla-La Mancha, La Rioja, Castilla y León or Aragón.

Regions between € 800 and the national average € 1,717

Galicia, Murcia, Asturias, Navarra, Cantabria, Valencian Community and Andalusia.

Regions above the national average € 1,717

  • Canary Islands (€ 1,766),
  • Catalonia (€ 1,988)
  • Madrid (€ 2.021),
  • Basque Country (€ 2.123),
  • and Baleares (€ 2,888).

Interesting to note, all those regions are in the areas of interest from foreigners apart from the Basque Country.

 

Let’s have a closer look at current property prices (value written in Blue on the chart) and at the price evolution (left scale) for each spanish region since one year. The regions are Alphabetically sorted.

 

As you can see on the chart we just showed: prices are increasing everywhere apart from 3 regions.

 

Spanish regions with the fastest increasing prices

 

Estremadura 45%
Galicia 17%
Asturias 13%
Aragon 12%
Illes Balears 12%
Canary Islands 11%

Spanish regions with decreasing prices

Prices are recovering in 2017, however, prices fell in three Autonomous Communities: The Rioja (-7%), The Castilla La Mancha (-7%) and the Navarre (-3%).

 

If you want to read more on the subject and you missed our paper of last week: Which are the top 10 Spanish cities where foreigners are buying properties NOW?

Read the full paper in Spanish here.

 

 

Looking for an expert in Spain? Ask us directly!

Stéphane 

Senior analyst and strategist at HTBIS

Check the full HTBIS team here

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