Looking for a property finder? Check the full profile of all the property finders within our network.

6 essential reasons for loving your property finder in Spain

Are you familiar with the legal procedure in Spain? How to check the technical aspects of the property? It’s not about having experience in property purchasing but being familiar with how the process works in Spain. Every country is different.
Overall, even if the process might sound easy, believe it or not, you will have a lot of questions and doubts during your purchase process and you will need assistance.

Spain is different, and most Spanish service companies do not work the same way as what is expected from a service provider in other, specifically Northern European countries and the US. Expectations are simply higher. Having a personal shopper will first help you to get all the purchase process in a professional way.

At HowtobuyinSpain.com, our mission is to help foreigners to understand the Spanish real estate market and to find qualitative partners on the ground. Since our launch, we developed a network of professionals partners with local offices all over Spain and talking the languages of the buyers. We work with many local experts for the property hunting: Pierre, Raf, Wim, Bernard,… but as well many experts in legal and tax advice, Architects… Fill this form in order to be directly in contact with our local specialists.

It´s very hard to make an important judgment or decision. Buying a property is for most people the second biggest expense in their life, after their own house. People need someone they can trust to help them, to answers all their questions, and give them guarantees that things are all right or to stop them when things are not all right. Nobody wants to make a mistake when buying something, and certainly not when it is your dream and possibly the second biggest expense you ever made in your life.

Let’s have a look at the 6 reasons why you should take a personal real estate shopper

1. He knows the market

When you are not familiar with the market trends, prices, neighbourhoods, don´t speak the language and lack the experience in buying a property in Spain, you can lose a lot of time and money or simply end up giving up on your dream. This can stress you out. Your personal real estate shopper is there to assist you.

He knows:

• the market and the prevailing prices and the last deals traded,
• the neighbourhoods,
• the reliable partners,
• which properties are coming to the market before they are visible by others.

2. He will save money for you

Once you found your property, your personal real estate shopper knows if the price is correct or not, he will negotiate the best deal for you. This will save you a lot of money, and for many deals, you will recoup your personal shopper fee by itself!

3. He will save your time

Your personal shopper will search the market for you. He has is own contact in the industry and is doing this 7/7, 10hours per day. He is on the ground and can make many visits in one day… Surfing on the Internet in search of your ideal property, arranging meetings and visiting them will take a long time. It´s complicated. So, that’s really obvious!

4. He will protect your interests

What are the properties that buyers are searching for today? Which one suits your project the most? Which are the best neighbourhoods in the city? Where to start searching? Who to trust? When you don´t know the answers to these questions, property buying can turn into a very stressful process. The property hunter is not working for the seller as the real estate agents are. His goal is to protect your interests: the interests of the buyer.

5. He speaks Spanish and your language

Language could be a barrier which brings additional challenges. The search is mainly in Spanish, as most local real estate agents are only speaking Spanish. And of course, all the legal paperwork in Spain is Spanish. So, it will help the process a lot to have a local intermediary speaking Spanish and at the same time speaking your language or at least English.

6. He will find solutions after your purchase

Once you bought the property, the real work starts: Opening utility meters, get in contact with the property owners, pay taxes,…

Any renovation works? I guess you will need some local partners, no? Buying for investment, I guess you will need a property manager,…

How does a real estate personal Shopper work?

It is a 6 steps process:

1. Interview with the customer

Most of the property hunter will organize a call in order to understand what the customer is ideally looking for. The customer will as well give is budget expectations. The property hunter will clarify if he thinks that he can find the ideal property within budget or not and will explain how the Spanish residential market is in general and how the local market is in particular. The property hunter will help the customer to define the ideal location according to his criteria’s: specific requests, budget, but as well depending on the motivations of the buyer.

Two main motivations

In general, foreigners could have two main motivations for buying a property in Spain:

1. Holidays
2. Investment

And of course, some are looking to buy for both at the same time!

Buying a property in Spain has its own costs. Owning a property as well! So, it’s important to know where you are going from the start!

Read our reports if you want to know more on that subject.

2. Contract

Once the customer knows all about the personal shopper and he is confident that he is the good partner, the real estate personal shopper will send his contract to the customer with the detail of his mission and the financial terms. After signing the contract, usually, the customer will have to pay an initial down payment to cover the initial costs and start the mission. Once the mission is completed and successful, the customer will have to pay the remainder, the “success” fee. That’s another big advantage of working with a property hunter: he will get the big part of his commission, only if his mission is fully completed!

3. Search the market and Visit properties

The real search is starting now. The personal shopper will first establish a list of the different criteria’s of his customer. Then he will get in touch with his contacts at many different real estate agents and he will search the market and the different portals. Once he has found a property, he will organize visits.

4. Feedback and exchanges with the customer

Once the personal shopper has found a property fitting the criteria’s, he will revert to the customer. Depending on the market, if there are a lot of possibilities on the market, he will even come back with many different properties fitting the criteria’s of the purchaser. Depending on the feedback from the customer, the personal shopper will continue is mission or not. In general, the customer will come as well on the ground, surely if his main motivation is a purchase for himself so that he can have a strong view on the different propositions and go ahead with any one of those.

5. Purchase of the property if agreement with the customer

Once there is an agreement on a property, the property hunter will begin to negotiate with the seller and will try to get the best price for his customer. At the same time, it’s the start of the purchase of the property which involves many different steps. Please read our Infographic on those: “The 8 Steps of buying your Spanish property”.

6. Assist the customer with formalities

Assist the customer with all the paperwork, the set up of utilities, the registration of the property with local authorities, with the community of owners…

But as well, help the customer to find local partners for renovation work or interior design. This part is as well important for foreigners as most of the time they don’t know reliable partners and don’t speak Spanish.

The best way to see what a property hunter does for you is as well to look at the real estate city trip to Valencia we organised in April 2018.

Have a look at the profile of our real estate personal shoppers in Madrid, Barcelona and Valencia.

Our property hunter in Madrid: Pierre and his team

Last Transaction in Madrid? Written on October 2017

They bought a one bedroom property for €361.115 tax included for investment purpose. This was financed by a mortgage of €161.115. The gross revenue on the property is €35.855 and the net revenue (before mortgage cost) is €22.971, i.e. a 6.4% net yield before tax.

How is the market in Madrid?

With “a growing economy, low financing costs, good potential for rental returns and capital appreciation” the Iberian Peninsula’s largest capital city, Madrid, ranks as the best European city for property investment.

Why is Madrid so attractive for property investors? First, Madrid’s housing market has recovered and is posting new gains. Foreclosures were down by more than 30% in 2016 and housing prices are expected to increase by 4% in 2017. Future increases are forecast to be even greater: 19% from year-end 2016 to 2021. Although prices are recovering, they are still some of the lowest in Europe, averaging 3,353€ per square meter.

Even more enticingly, Madrid has rental yields of 5.2%, the highest rental yields of any European capital city, and some of the highest in the world.

This combination of low real estate costs and rising rental prices in Madrid are big draws for property investors. To learn more reasons why the Madrid property market is so attractive, read our ealier paper: Madrid in the Top 3 European Cities for Property Investment.

Read our full report on the real estate market for the 20 biggest Spanish Cities: All you ever wanted to know about the top 20 Spanish Cities real estate markets – including price evolutions

A quick description of Pierre and his team

Pierre and his team are active on the market since more than 7 years, they served more than 800 clients and managed investments of more than 8.3m€ (nearly $10m).They help busy international professionals to find the perfect property: they provide property search, negotiation and property management services to help people from all around the world to buy in Madrid. They are an international multi-lingual team dedicated to helping international people just like you make their Madrid projects come true and without the stress and uncertainties. The average return that we get for our clients is 10.6% (includes capital appreciation and rental income – all after costs).

They speak in English, French and Spanish.

Check our most recent article of February 2018 on Madrid Property hunting: Madrid property investment: a Case study with the last update on the real estate market in Madrid.

Our property hunter in Barcelona: Raf and his team

Last Transaction in Barcelona? Written on October 2017

Signed on October 26th 2017 (it´s hard to be more hot-of-the-press). Two-bedroom apartment of 84m2 in the heart of the trendy area Gracia, in a beautiful classic building and containing historic elements like mosaic floors and vaulted ceilings that are typical for Barcelona. Who buys and why? A Belgian buyer, as an investment to rent out. We will fully renovate the apartment in order to create a lovely space and achieve attractive rental incomes and created added-value. Located in a traffic-free street, with plenty of sunlight (south-orientated) and with a common rooftop terrace, which is a unique asset in Barcelona. Purchase price: 258.000€. We negotiated a considerable discount for the buyer and more important to note is that the property was sold “pre-market”, we saw it first before hitting the market. This is the second investment property that this buyer purchases this year in Barcelona. Beside the buying process, INSPIRE will manage as well the renovation and renting out. Expected returns on own capital from the investment are 10%, not taking any potential property value increases into account.

During the past few months at Inspire we have closed purchases for a total value of 3M euro and we are currently working with a total investment budget of 10 million euro across our different clients, of which about 75% are international buyers.

How is the market in Barcelona?

Barcelona is a market where we see every year an increase of approximately 15% in international buyers. Also the total number of buying transactions is going up year after year, as well as the prices do. Barcelona´s lifestyle is hard to beat and in terms of properties, the city plays in the global real estate champions league. Barcelona is a city that is a magnet and that´s not only because of it´s attractive property market. People love the city, the lifestyle, the climate, the ease of cheap travel options to come to Barcelona, the good food, … in other words a real cosmopolitan vibrant city at the Mediterranean sea.

A quick description of Raf and his team

We are passion, effort, high performance, an answer to a deep need. We are enthusiasm and focus. We are a Barcelona based company offering innovative buyer-focused Property Finder services. We do not sell houses but help you find and buy your dream place by exclusively defending your interests and guiding your through the process from A-Z, till you have the keys in your hands, including full legal advise, technical and financial help. Buying made easy.

They speak in Dutch, English, French, German, Russian, Spanish and Catalan.

Check our most recent article of May 2018 on Barcelona Property hunting: Barcelona property investment: a Case study with the last update on the real estate market in Barcelona.

Our property hunter in Malaga:

Last Transaction in the Costa del Sol? Written on October 2017

Between Malaga and Marbella, we bought for a couple in their 40s, a very beautiful and spacious 2-bed/2-bath apartment in a well maintained community. The apartment has 90 sp meters and was listed between €200.000 and €250.000. The couple was looking for a mixture of personal use and occasional renting. It’s location is perfect as it is 20 minutes from the airport and is within walking distance to the sea. Ideal!

How is the market in the Costa del Sol?

In spite of fears that uncertainty over Brexit was going to depress the recovering market, we have seen good and consistent demand over the last months from a variety of Northern European countries, in particular Belgium. Stylish new developments are also reappearing in many places along the Costa del Sol. As long as they are in prime locations and of high quality, they should be able to find buyers. We don’t see heavy leveraging (debt financing) or speculative attitudes (buy to sell) among buyers, which is a sign that the market is healthy and will remain so for the coming years.

Read our full report on the real estate market for the 20 biggest Spanish Cities: All you ever wanted to know about the top 20 Spanish Cities real estate markets – including price evolutions

Our property hunter in Valencia: Bernard and his team

Last Transaction in Valencia? Written in October 2017

How is the market in Valencia?

The market is down in the Valencian community, -4% compared to the overall growth of 3% in Spain. The price for Castellon, Valencia and Alicante are on average at 1,386 eur/m² with important variations between the coast and the interior. Sales continue to grow and the interests on those markets is increasing.
The Valencian community has 19,657 real estate companies (INE 2017). That is why it is very important to choose a reliable partner as your real estate agency. Should your motivation be an investment or a holiday home it’s important to benefit from reliable and independent services.

Read our full report on the real estate market for the 20 biggest Spanish Cities: All you ever wanted to know about the top 20 Spanish Cities real estate markets – including price evolutions

A quick description of Bernard and his team

Bernard fell in love with Valencia during his Architect studies in 2000. He is working as an Architect in Valencia and Alicante since 2005. He is working with his team on Architect missions or as a property finder.

They speak in German, English, French and Spanish.

Check the feedback from our real estate citytrip we organised in Valencia in April 2018 with our local property hunter, Bernard.

In conclusion, a real estate personal shopper will make it quicker, easier and cheaper!

Check the list of our partners active as real estate personal shoppers in Spain. We can’t list all our partners in this section so don’t hesitate to ask us directly if you have a request by filling this quick form.

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

Looking for an expert in Spain? Ask our network of local partners directly!

Stéphane

Senior analyst and strategist at HTBIS

Check the full HTBIS team here

The post 6 essential reasons for loving your property finder in Spain appeared first on How to buy in Spain.

Get our best ideas for planning your holidays in Spain!

Before starting with all our top ideas, remember why you need holidays:

Here are a few ideas to help you organise your stay in Spain:

• Summer Edition: Our Top 5 UNESCO World Heritage Sites in Spain
• Summer Edition: Top Golf Courses in Spain
• Summer Edition: Our selection of the Top parks for children in Spain
• Summer Edition: Where will you find the top Beaches in Spain?
• The best Spanish shopping experience you will find in Alicante, Barcelona, Madrid and Malaga!

Check our city trip ePostcards we wrote on Alicante, Malaga, Barcelone and Madrid:

Check all our infographics (with pdf downloadable version) on the Spanish Costas with all the top activities for your holidays

Here is one of the Costa del Sol as an example:

Find everything on the Costa del Sol: its Airports, its AVE stations, its Cities and villages, its shopping places: Traditional & Flea markets, Outlets and shopping malls. What should you visit? The Unesco sites, the parks for kids, the green parks, the golf courses, the universities and last but not least the top beaches. Check our infographic.

We have created those infographics for all the Spanish costas: Costa Brava, Costa Barcelona, Costa Daurada, Costa de Azahar, Costa de Valencia, Costa Blanca, Costa Calida, Costa de Almería, Costa Tropical, Costa del Sol, Costa de la Luz, Balearic Islands, Canary Islands.

A few other papers that could be of interest:

• What are the most favourite tourist destinations in Europe?
• Where are the tourists coming from to visit Spain?
• The most loved Spanish regions for the foreigners’ properties: British, French, German,…
• Who are the foreigners buying properties in Spain? Our detailed analysis
• What are the hottest tourists destinations in Spain – Winter months?
• Who are the foreigners living in Spain?
• Are you buying real estate in Spain?… Join our 36.000 readers … from 169 countries in the world!!!
• The top 10 Spanish cities where foreigners love to buy properties!
• What are the nationalities of the passengers flying to/from Spanish airports ?
• Which are the most active airline companies in Spain?
• What are the biggest airports in Spain?
• Give us your country of origin… we will tell you how much you love Spain!

Finally, if you want to know more about any top Spanish Cities (not only about the real estate market) find all our City papers here:

Everything you ever wanted to know about the top 20 Spanish Cities real estate markets

Of course, check our weather infographics with the monthly statistics of the top 20 cities in Spain.

Monthly Weather Statistics on top Spanish Cities

Looking for an expert in Spain? Ask us directly!

Stéphane

Senior analyst and strategist at HTBIS

Check the full HTBIS team here

The post Our best ideas for planning your holidays in Spain! appeared first on How to buy in Spain.

Where are foreigners buying properties in Spain in 2022?

Which nationalities are active? Are they residents or not? Which nationalities are buying Real Estate in Spain? What price do they pay?

Europeans are buying properties in Spain as never: 137,000 properties bought by foreigners. Of course, we see many Europeans active as usual and the United Kingdom is still the first country to buy properties in Spain. A new trend is that we see foreigners coming from further: Latin America with Argentina and Venezuela, America and China are there too. Americans are benefitting from a steep discount: the euro is cheaper by 20% in 2022 vs the dollar.

A quick reminder before starting this interesting subject, please remember that if you want to buy a property in Spain, you need an NIE number, read our detailed article for more information: Your ultimate guide to your Spain NIE number – NIE Spain. Another interesting article we would recommend: How to buy a property in Spain as a foreigner? At Howtobuyinspain.com we have the best experts in our network to assist you everywhere in Spain. As you will see in this article, we have the best tools and database to know where the market is and what are the trends. Thanks to that, we help our customers to make the best deals in Spain.

As for all our articles, in this article, you will find interactive charts showing detailed data with a mouse click on it and we have static charts available for download. Please note that our interactive charts have always the most recent data as they are linked to our databases. Of course, our static charts are regularly updated.

1. Which nationalities are buying properties in Spain?

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

What was the activity in the Spanish real estate market up to June 2022?

• 703,331 property transactions for the last 12 months: +18% yearly growth
• property activity by Spaniards increased by 13% year-on-year to 562,956
• property activity by foreign buyers increased by 47% year-on-year to 136,921
• This equals 19% of all the property transactions that occurred in Spain.
• 45% of the transactions were carried out by non-resident foreigners and 55% 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 the EU buying properties in Spain?

For the last 12 months to the end of June 2022, the most active nationalities were :

• the British with 11.2% of the property purchased by foreigners in Spain,
• the Germans with 10.3% of the property purchased by foreigners in Spain,
• the French with 8% of the property purchased by foreigners in Spain,
• the Romanians with 6.7% of the property purchased by foreigners in Spain,
• the Italians with 5.9% of the property purchased by foreigners in Spain,
• the Belgians with 5.2% of the property purchased by foreigners in Spain,
• the Dutch with 4.9% of the property purchased by foreigners in Spain,
• and the Swedish with 4.2% of the property purchased by foreigners in Spain,

Check our foreigners’ profiles and buyers guides: What are the ideal Spanish properties for Belgians Chinese Dutch English French Germans Italians Moroccans
Romanians Russians Swedish?

Discover the best new build projects in Spain available right now

Most active nationalities outside the EU buying real estate in Spain

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

such as Morocco (7.7%), China (2.6%) or Russia (2%), America (1.6%) and other countries outside the EU 11.2%

If you want to live in Spain, have a quick check at our interesting article on the Golden Visa: Golden Visa in Spain: Your ultimate guide!

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:

Here is the same info reproduced with a pie chart:

Source: Centro de Información Estadística del Notariado de Espana

Which nationalities are buying more properties during the last 12 months to June 2022?

Of course, Europeans are very active in the property market in Spain. Most Europeans come from northern countries. A more recent trend we noticed at howtobuyinSpain in 2022 with many new customers flowing in: Americans are buying actively everywhere in Spain, thanks to the weak Euro vs Dollar. Yes, the Euro lost 20% this year, not bad for Americans looking for bargains. Have a look at our paper written by our property hunter in Madrid for more on that: Americans are buying properties in Madrid.

Here are the countries increasing the most their property purchases in Spain in 2022 vs 2021 (last 12 months to June):

• Netherlands +101%
• Germany +81%
• Ireland +95%
• Norway +72%
• Denmark +70%
• USA +69%
• Sweden +66%
• Switzerland +62%
• Argentina +45%
• France +41%
• Belgium +36%
• UK +36%
• China +31%

Source: Centro de Información Estadística del Notariado de Espana

Which nationalities are less active during the last 12 months to June 2022?

All countries have a positive growth

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

This was the situation end of 2016 when we wrote this article for the first time: we keep the same top 3 nations.

Foreigners living in Spain are more active

• Foreigners living in Spain recorded 74,643 operations, 26% more than one year before.
• Non-resident foreigners bought 62,278 properties, an increase of 84% 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. Covid had its impacts: people wanted to remote work from a nice place if they could: Spain is a nice option. Others wanted to enjoy a better quality of life: more space, more sun, a better quality of life… while of course, the cost of living in Spain is much lower than in many places in the world and in Europe. For more on that, read our articles: Which are the cheapest cities to live in Spain? The cost of living in Spain vs the UK, Relocate to Spain? Spain is one of the best countries in the world for relocating and for working remotely.

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

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

2. Where are foreigners buying properties in Spain?

What are the main regions in Spain where foreigners are buying real estate?

Same info in a downloadable format:

Source: Centro de Información Estadística del Notariado de Espana

What is the evolution of each region in Spain during the last 12 months to June 2022?

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

Most active regions – The 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 the fourth quarter of 2021 are

• The Balearic Islands with 39% of all transactions,
• The Canary Islands with 26% of all transactions,
• The Valencian Community with 24% of all transactions,
• Murcia with 17% of all transactions,
• and Andalusia with 13% of all transactions.

Check our interactive chart on that:

Most active cities where foreigners are buying the most real estate in Spain vs Spaniards?

According to the “Colegio de Registradores de la Propiedad”, the cities where foreigners are the most active (vs Spaniards) in the fourth quarter of 2021 are:

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

Check our interactive chart on that:

Source

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:

Remember the infographic we did on the subject last year, it remains nearly the same in 2018!

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

Check the evolution of the price paid for each Spanish region since 2007 by foreigners:

The average price per square meter of properties bought in Spain by foreigners increased by 2% year-on-year to June 2022. The acceleration of real estate prices was recorded both among property transactions done by non-residents and by residents, although the former paid higher prices than the second ones, € 2,522/ m² against € 1,622 / m², respectively (with an average of € 2,062/ m²)

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

• Non-residents are buying top-notch second homes in more expensive locations: expensive cities and premium areas with sea views and large terraces for instance. They are going for the best properties on the market.
• Non-residents who are buying a second home in Spain are wealthy and have a higher budget from start.
• Non-residents are buying newbuild properties in Spain and newbuild properties are more expensive than resale,
• Some new “resident foreigners” relocate to Spain because of the high quality of life in Spain and the low cost of real estate in Spain. So they are looking to start a new life they can afford and will go for low-cost properties inland. Read more on that in our article: Which are the most expensive and cheapest cities to live 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 (the year before the crisis) on this chart:

In terms of levels, the average price per square meter paid by foreigners continued to register strong differences between each region. End of June 2022, it was below the national average
of € 1,741 in 12 of the 17 Regions. Please note that the average paid per square meter by foreigners is € 2,062.

Regions under €1,000:

Extremadura, Castilla-La Mancha, La Rioja, Castilla y León, Aragón and Galicia.

Regions between € 1,000 and the national average paid by foreigners for real estate €1,741

Murcia, Asturias, Navarra, Cantabria and the Valencian Community

Regions above the national average for properties in Spain € 1,741

• The Canary Islands €2,195,
• Catalonia €2,249,
• Basque Country €2,230,
• Madrid €2,893,
• and Baleares €3,894.

Interestingly, all those regions are areas of interest to foreigners apart from the Basque Country, a region much appreciated by the French.

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 for one year. The regions are Alphabetically sorted.

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

Spanish regions with the fastest increasing prices over the last year to June 2022

Spanish regions with decreasing prices over the last year

• None

If you want to read more on the subject and you missed our paper of last semester: Which are the top 10 Spanish cities where foreigners are buying properties NOW? And don’t miss our property buyers guide written for any foreign country.

Source: Read the full paper in Spanish here.

Who are the foreigners paying the most in Spain for their properties?

As of June 2022, here is our alphabetical ranking of real estate prices paid by foreigners in Spain:

• People from Argentina pay on average 1759 € per square meter for their properties in Spain.
• People from Belgium pay on average 2104 € per square meter for their properties in Spain.
• People from China pay on average 1741 € per square meter for their properties in Spain.
• People from Denmark pay on average 2870 € per square meter for their properties in Spain.
• People from Ecuador pay on average 1198 € per square meter for their properties in Spain.
• People from France pay on average 2149 € per square meter for their properties in Spain.
• People from Germany pay on average 2657 € per square meter for their properties in Spain.
• People from Ireland pay on average 2092 € per square meter for their properties in Spain.
• People from Italy pay on average 2103 € per square meter for their properties in Spain.
• People from Morocco pay on average 694 € per square meter for their properties in Spain.
• People from the Netherlands pay on average 2252 € per square meter for their properties in Spain.
• People from Norway pay on average 2701 € per square meter for their properties in Spain.
• People from other countries in EU pay on average 2148 € per square meter for their properties in Spain.
• People from other countries in the world (outside EU) pay on average 2015 € per square meter for their properties in Spain.
• People from Portugal pay on average 1782 € per square meter for their properties in Spain.
• People from Romania pay on average 1097 € per square meter for their properties in Spain.
• People from Russia pay on average 1989 € per square meter for their properties in Spain.
• People from Sweden pay on average 2701 € per square meter for their properties in Spain.
• People from Switzerland pay on average 2567 € per square meter for their properties in Spain.
• People from the UK pay on average 2003 € per square meter for their properties in Spain.
• People from Ukraine pay on average 1612 € per square meter for their properties in Spain.
• People from the USA pay on average 2837 € per square meter for their properties in Spain.

Here is our downloadable infographic on that:

Source: Centro de Información Estadística del Notariado de Espana

Of course, there are many reasons to explain those differences:

• The region where those nationalities are buying on average,
• The location of the property: sea view? countryside? within a city?
• The type of properties: villa or apartment, newbuild or resale, with terrace or plot or not,…

So, those are just “statistics” but they are interesting as price discrepancies between foreigners are quite big when foreigners buy properties in Spain.

4. How to start your property search in Spain?

Here is our A to Z must-read guide: Our ultimate 2022 guide to buying your property in Spain.

At HTBIS, we assist foreigners with their property search in Spain thanks to our network of local partners: legal advisers, tax advisers, property hunters and much more. Discover all our partners here.

Looking for an expert in Spain? Ask us directly!

Stéphane

Senior analyst and strategist at HTBIS

Check the full HTBIS team here

FAQ

The post Where are foreigners buying properties in Spain in 2022? appeared first on How to buy in Spain.

Follow this link if you are looking for the last update on the real estate prices for the top 20 Spanish cities.

Property investment in Spain: a very strong return of +11.2%

According to statistics released by the Central Bank of Spain in November 2022, the return expected on the residential Real Estate market in Spain is 11% and 8.4% if you take a mortgage – Green line on the chart. Not a bad property investment in Spain!

This performance comes from two sources:

• gross rental yield estimated at 3,6% –Blue line on the chart– and
• capital gain estimated at 7.6%.

Here is what we will cover in this article:

The Spanish real estate market has been strong since 2014 

Sure Covid came to impact the market for the last three years to the end of 2021 but since 2022 here are the main evolutions:

As a reminder those are the trends that impacted the real estate markets worldwide post Covid:

• • people are buying bigger, with more outside spaces and lights
  • people are buying outside big cities
  • foreigners are less active due to travel restrictions (but at HTBIS we could see a strong pick up in activity since the end of 2020)

Don’t miss our detailed quarterly report: The top 20 property markets in Spain

Now, we are fighting against a new “issue”… inflation. The good news is that the Spanish real estate market offers a nice hedge against inflation up to now and returns remain stron.

1. Spanish real estate return is back above 10% since May 2019

    

   Of course, the uncertainty in the economy that came from Covid was noticeable in 2020 but since 2021, the market is rebounding strongly both in terms of transactions and prices. Have a look at our Spanish real estate quarterly report studying the property price evolution in all the top 20 regions of Spain for more.

    

   Have a look at our interactive chart (yes when you come back, it will be updated). As you will see, property investment in Spain was wise since 2014.

    

    

2. Mortgage rates in Spain are rising since the start of 2022 at 2.9%

    

   Yes, inflation is back, and so interest rates are rising. As of November 2022, mortgages rates were issued at 2.9% in Spain, Red line on the chart

    

    

   

   Get the best mortgage rate in Spain

    

   Read our article updated every month with the current mortgage conditions, we have added many interesting statistics to follow as inflation levels: Find the best mortgage rate in Spain

   We told you since 2020 that the risk was there for inflation spiking. Now, low mortgages are a history of the past but our view is that at the current levels of mortgages rates are still low. Another interesting thing to note is that real estate buyers are taking fixed-rate mortgages to finance their real estate purchases right now. Read more on that: Fixed or variable rates mortgage?

   Have a quick look at our Spanish mortgage calculator if you want to know what is your purchasing power to buy a property in Spain:

    

   

   We developed a detailed mortgage calculator: Payment schedule, monthly payments,…

   The first real positive return since the crisis of 2008 came in early 2014 … six years ago…

   As you can see on our chart, the estimated return became slightly positive for the second time since 2008 at the start of 2014. In 2010, the estimated return went slightly positive but it was not enough to compensate for the mortgage costs. The performance was much stronger in 2018 as the estimated profitability was higher than 10%. Right now, with close to 6%, the estimated profitability covers more than 3 times the current mortgage costs.

   Follow this link if you want to learn more about our partner, one of the leading Mortgage brokers in Spain.

    

3. Real estate prices are lower than 10 years ago

    

   Are there a lot of downsides to where we are here? Check the chart of real estate price evolution before and after 2007:

    

    

4. Spanish real estate returns have the second weakest performance in Europe on a 10-year time frame

   Have a look at the comparison of the real estate market in Spain vs other European countries on any time frame between 3 months and 10 -year time frame

    

   

   European House prices index

    

   As you saw on this histogram, Spain has the weakest performance in a 10-year time frame. Click on the chart to check the performance for other period lengths.

    

5. Spanish Real Estate has the highest yields vs many European Cities

   Discover the best new build projects in Spain available right now

   New build for sale in Spain € 320,000

   2 beds 1 bath 61.3 m²

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   Is Spanish property a good investment? Spain is in the sweet spot for a property investment if you check the real numbers!

   If you want to know your property return for your Spanish property, you need to know a few data: your rental income before and after costs, your property prices and of course it is good to know the costs of your property including taxes. For more on that, read: the cost of owning a property in Spain and What are the taxes you have to pay on your Spanish property?

   Buy to let? Spain offers some of the best returns in Europe:

   • Madrid is in 7th place in Europe with a return of 3,9% and offers one of the best rental yields in Spain with more safety on your investment.
   • Alicante took over the second place one of the best rental yields in Europe with a return of 4,6%, not bad
   • Barcelona is the eleventh city in Europe with a yield of 2,2% according to Deloitte. Rents went down heavily in Barcelona for a few reasons, in 2020, the local authorities did introduce a cap on rents… while at the same time, the lockdown was quite strong, and a lack of demand from international businesses. We wouldn’t be surprised to see the yield come back up in the years to come.

   Check the best rental Yields for the major European Cities, Madrid, and Alicante have rental yields close to 4%.

    

    

   Barcelona and Madrid are the 5th and 8th most expensive European cities in terms of price/m²…

   Have a look at our interactive chart

    

   But check on the above chart, the price/m² in London is 7,916€/m² and 12.917€/m² in Paris… while Barcelona and Madrid are closer to 6.000€/m² and 5.000€/m².

   You read it correctly: less than one-quarter and one-third of the price of London and Paris. Period.

   Now, you understand why the returns in Madrid and Alicante are much higher than the ones in Paris and London.

   Do you think that the downside risk is higher in Barcelona and Madrid than in Paris and London?

   In the 2023 report from CBRE on European Investor Intentions, we find both Madrid and Barcelona in the top 6 as the best cities for real estate investors.

    

   

    

6. Real estate activity has strengthened since end of 2021 …post-Covid

   Close to 95.000 properties were bought by foreigners in Spain in 2021 (12 months to September 2021) and more than 545.000 by Spaniards.

    

   It looks like others agree with our conclusions…

   Check for more information on our up-to-date pages on the Spanish national real estate market (prices and activity) and on the Spanish regional real estate markets (prices and activity).

   If you want to have a deeper analysis, city per city, we would suggest reading our full report on that (click on the picture):

   

   Here is as well our report on the Most active cities in Spain in 2019 (in terms of transactions).

    

7. Big uncertainty for the Spanish economic activity

   Of course, we noticed a strong rebound in early 2020,… stopped by Covid. But activity in Spain is staying stronger than in most of the other European countries. What a roller coaster!

   Check our up-to-date tables of a few Economic indicators in Spain:

   But after this strong rebound, as everywhere in the world, we wait for the uncertainty to settle and the vaccines to allow more “normal” economic activity.

    

8. Financial markets will be more volatile

   2018 with a year of higher volatility and negative returns in the financial markets. 2020 saw a huge spike in volatility due to Covid. Shortly after, the Central banks poured money to support economies.

   Since 2022, we expect higher volatility in financial markets due to the change of policy from central banks all over the world. As of 2023, the interest rate curve is inverted, which signals a very high probability rate of an economic recession. Of course, a big unknown is how inflation numbers will come in the next years. The good news as of mid-2023 is that energy prices came back under the levels of early 2022 when the war started in Ukraine.

    

9. Spanish real estate outlook for 2023

   As we wrote in our article, we are moderately optimistic about the outlook for the real estate market in Spain in 2023. While we have to admit that the comeback post-Covid of the Spanish real estate market (and everywhere in the world) was quicker and stronger than we expected. If we compare it to international markets, the rise is reasonable and not speculative. So, in our mind, we don’t see a real estate bubble here. The good news for international real estate cash-buyers: it should be easier to find properties as interest rates are rising.

    

10. How do we assist our customers to buy finding their dream homes in Spain?

     

    Whether you’re looking for a holiday home or a permanent residence, all our local partners will help you to find the perfect property in their extensive selection of properties to suit your needs and budget. With a wealth of experience and knowledge, our team of real estate professionals are dedicated to helping you find your dream property in Spain.

    But we’re not just here to help you find your perfect property. We also offer a range of services to make the buying process as smooth and hassle-free as possible. From legal advice to property management, we’ve got everything covered. Don’t hesitate to get in touch with our HTBIS team.

     

    Have a look at our interesting articles:

    • The 7 pitfalls of buying a property in Spain
    • Top 10 reasons why we think that the Spanish market is a nice real estate opportunity right now. We bought ourselves in 2014,… and in 2019… let’s put our money where our words are 😉 .
    • Spanish Real estate market vs the other European markets – Our quarterly update
    • Madrid investment case study
    • Barcelona investment case study
    • Tenerife property investment case study
    • Six reasons to love your property shopper

     

     

    Looking for a local property hunter, a local lawyer, … any expert in Spain? Ask us directly!

    

    Stéphane

    Senior analyst and strategist at HTBIS

    Check the full HTBIS team here

     

11. All our charts of this article are available here in a downloadable format

     

     

    

    Property investment Spain

    

    Calculate the return on your property investment in Spain

    

    Foreigners’ real estate activity in Spain

     

    

    Real estate prices and transactions in Spain

Source: Deloitte Property Index 2020, Overview of the European Residential Market

FAQ on the subject

The post What return will you make on your Spanish Property in 2023? appeared first on How to buy in Spain.

Follow this link if you are looking for the latest real estate price trends for Spain’s top 20 cities.

The Spanish real estate outlook 2023

Last year, we predicted a strong market with price increases between 3 and 6 per cent. We were spot on!

The Spanish real estate market should be more stable in 2023 and we could even see some price decreases. As we will explain in this report, Expectations for the Spanish housing market are for price changes between minus three per cent and plus 4 per cent as experts have different views due to a greater uncertainty of the evolution of the economy. The good news is that many experts see it as one of the best-performing markets in Europe for 2023.

Inflation will be the main topic if you want to understand the real estate market: after many years of loose monetary policy and after the war in Ukraine, inflation is back and should stay with us for a while. We will have to cope with that. Last year we already spotted those potential risks for the real estate markets in our Spanish real estate outlook for 2022. So, this is not a surprise for us. But we have to admit that the magnitude of the moves impressed us.

In this report, you will have our detailed outlook on the Spanish real estate market and benefit from the analysis and feedback of our local experts and partners established everywhere in Spain. Of course, the market won’t rise as much as in 2022 on one hand, but it will give more opportunities on the other hand. And make no mistakes, we will explain to you why real estate prices in Spain remain conservative at current levels: we don’t see excesses as in 2008.

Last but not least, we tell you why we think that Spain’s economy should become stronger than other European countries over the next five years. This positive news should keep the Spanish real estate market healthy and in demand at least compared to other real estate markets in Europe.

In this environment, Spain has a lot to offer to Spaniards, foreigners and remote workers: a high quality of life. Actually, Spain is one of the best places to relocate and work remotely thanks to 320 days of sun and of course the low cost of living in Spain.

Looking for a comprehensive and up-to-date analysis of real estate prices in all major Spanish cities? Look no further than our quarterly report, which provides precise insights you won’t find anywhere else.

The Spanish property market will be a buyers’ market in 2023

Here are the important metrics to follow in 2023:

• Inflation
• mortgage rates
• the consumers’ purchasing power
• Economic activity in Spain and in Europe
• Remote working
• Of course as usual what will be the activity of foreigners in Spain in 2023?

Yes, let’s start with the bad news: inflation is back. That is why both short-term and long-term interest rates have risen. So, as a consequence, mortgage rates are much higher now than one year ago. We expect this situation to stay at least two years, maybe more. So, property financing with mortgages will be less easy for buyers and the Spanish economy should moderate in the short term. Those are the two main reasons why we think the Spanish property market will mark a pause in the short term. The good news is that mortgage rates are not crazy if you compare them to inflation.

Check the evolution of the mortgage rates: average, fixed and variable over the last year

Transactions should decrease and prices should be stable or decrease slightly

as on one hand, economic activity will be less strong and on the other hand mortgages rates are rising.

Both Spaniards and foreigners will be less active, which will give more opportunities for the buyers, and even more for the foreign cash buyers that don’t need a mortgage.

Foreign cash buyers will be the perfect time to get a better home: more space inside and outside and more light, and for those with a smaller budget, our advice is to go after a second home outside city centres.

That is why we are optimistic for foreigners in 2023: opportunities will be there and the market will be less tense.

So, our view is that prices could decrease between 1 and 3%!

What about the GDP growth in Spain for 2023 and 2024?

The FMI predicts that Spain will have strong GDP growth in 2023 and 2024: 1.1% and 2.4%.

Are we at risk of a big property price decrease as in 2008?

Are we in a real estate bubble in Spain?

Many experts don’t think so as:

• The portion of real estate vs income is not excessive for most Spaniards
• Leverage is not excessive
• Building companies have less leverage
• The number of new build properties coming to the market is not excessive.

Here is another article to read more on that: Are we in a property bubble in Spain?

So, the short answer is no, we are not at risk of a big price decrease, as long as the economy remains stable, as current property prices in Spain are not overextended. Read our quarterly report for more on that: Spanish property prices remain very competitive vs other international markets.

The biggest risks we see for the time being are:

• Central banks in the world are aggressively raising short-term interest rates: the Fed, the ECB,…
• Long-term interest rates are spiking
• Inflation is spiking everywhere in the world central banks are fitting it.
• The Chinese economy is dependent on its management of Covid, its real estate sector and its slowing economy.
• Consumers are squeezed worldwide with high inflation numbers.

The positive data for the Spanish real estate markets are:

• property prices are not too expensive in Spain vs international real estate markets,
• mortgages rates are much lower than current inflation rates
• real estate could be a good hedge against inflation for investors.
• we see Spain having a long-term competitive hedge in this environment of high energy prices.

Why are the long-term prospects for the real estate market in Spain strong?

• Not enough properties are available on the rental market as Spain is an “Owner” country with more than 75% of Spaniards owning their home.
• With inflation rising, construction costs are on the rise and supply won’t easily come
• Most of the properties in Spain are old and some need renovation works, which means a delay to have those back on the market
• Real estate prices in Spain are not too expensive, read our quarterly report on Spanish property prices for more on that.
• With the energy crisis in Europe, Spain is one of the European countries with the lowest costs for utilities in Europe, as we told you in our article, we think that this will remain the case in the future, so, the Spanish economy should remain stronger than many European countries. This will provide strong support to the real estate market. We could even see some relocations of companies toward Spain in the future.
• Buy-to-let in Spain provides a nice return for investors.

Newbuild vs resale in 2023?

We don’t expect huge discounts for real estate buyers but yes, cash buyers should get discounts on resale projects and they should negotiate before writing an offer. We don’t expect huge discounts for newbuild – we have some special offers on newbuild properties from our partners, just ask us directly – as construction costs are higher and the Spanish housing market is healthy and not oversupplied as it was in 2008. Some regions could have more newbuild supplies which could give opportunities for buyers.

A new long-term trend favouring Spain!

Spain has many competitive edges over other EU countries:

• Low cost of Utilities: Electricity and Gas prices compare in favour of Spain vs nearly every country in Europe. Have a look at our detailed article for more on that subject: the cost of utilities in Spain is up to 75% cheaper than in other European countries.
• Spain is a leading country in terms of renewable energy: Spain has already 50% of its energy from renewable sources and wants to reach 100% by 2050.
• Qualified labour at a low cost

All those will be big edges for Spain in the long term and could transform Spain into one of the biggest economic and industrial powerhouses in Europe.

The IMF shares our view and published in a November report that Spain’s Economic growth is projected to reach 4.6 per cent in 2022 and 1.2 per cent in 2023. This put Spain one of the top-growing country in Europe.

That is why we think that the real estate market in Spain will on one end suffer from less demand from Spaniards and foreigners due to the slower economic activity in Europe. But, on the other hand, if we compare the Spanish property market to international markets, if we see where it is now, under €1,800 per square meter, and if we add the short-term and long-term advantages of Spain, we think that the Spanish real estate market will stay stronger than the European average.

For real estate investors, as we don’t see inflation vanishing quickly mortgage rates are very competitive in this inflationary environment and indexation of rents to inflation could water down inflation effects (not 100% as those are limited by the government). But, that’s not bad in a difficult economic environment.

For more on mortgage financing, have a look at our article: “Fixed or variable mortgage for my Spanish home?“

The 2023 Spanish property market forecast from our local experts

We asked our partners to give some colours to their local property markets. This is very interesting as they have knowledge of the market and see daily what is going on. Here is the feedback on Madrid, the Costa Blanca, the Costa Daurada and the Canaries. This section will be updated later on if we get more feedback. You can find all our local Spanish property hunters members of our network by following the link.

The 2023 forecast for Madrid real estate market

We discussed this with Agnes one of our local property hunter in Madrid.

Are foreigners active in the real estate market in Madrid as of the end of 2022?

Foreign buyers, especially those who have their savings or incomes in USD, have increased their demand for both investment properties and second homes in Madrid, presumably because the EUR/USD exchange rate is very favourable for them right now, and mortgage rates are still lower in Spain than in the US.

Yes indeed, we pointed out this trend earlier on this year with Agnes: Americans are buying property in Madrid at a 20% discount.

Are Spaniards more or less active in Madrid?

National buyers who have enough savings for the downpayment have also shown an increased interest in completing their purchase this year, as it seems very likely that interest rates on mortgages will keep going up for some time, whilst decreases in prices of properties are not certain at all.

I believe that small investors who would be purchasing without a mortgage are cautious, holding off to see if there is really a recession next year and hoping they can get better deals in a few months than today.

What is the 2023 outlook for the Madrid property market?

On one hand, if mortgage rates keep increasing some buyers will not be able to buy, so part of the demand will decrease. On the other hand, if inflation rates are persistently high, people with savings will likely look towards the real estate market as a refuge, increasing demand for investment-oriented purchases. Price fluctuations will most likely not be consistent throughout neighbourhoods and property types. For example, unless there is a serious worldwide crisis, it seems unlikely prime properties’ prices will drop significantly because they might still be propped up by foreign demand and by national buyers with high purchasing power who are not stretching their budget to the limit and therefore are not so affected by higher mortgage rates.

The major risk is the “unknown” factor, such as when the covid pandemic appeared out of the blue: we don’t know what we don’t know! A possible positive surprise could be the inflation petering out sooner than expected.

Have a look at the full profile of our property hunter in Madrid Agnes here and check the last property she bought for her customers.

 

The Costa Brava 2023 real estate outlook

Séverine, our local property hunter in Costa Brava, gave her analysis on the Costa Brava.

What is the current activity on the property market in Costa Brava?

It is true that with the current climate, inflation, rising fuel prices, and the significant rise in interest rates, buyers want to know what the crisis in Spain really means. The crisis is undeniable and is disrupting the Spanish property market but in what way? It is quite heterogeneous depending on the type of product and the region. The big cities are particularly affected for purchases of main residences. On the other hand, the effects on the purchase of second homes are less noticeable, especially in areas that have always been in high demand, such as the Costa Brava and the Costa del Sol. We are writing this article in December 2022, and so far we have not seen any significant drop in prices. It is a very tight market due to the high demand and the limited number of properties on the market. The crisis is softening this contrast slightly, but prices are not falling and are tending to stabilise after the sharp increases post COVID (around +20% over a period of one and a half years).

What is the 2023 outlook for the property market in Costa Brava?

For 2023 we remain very confident about the market on the Costa Brava. With still a lot of demand from abroad, still mainly from Europeans, but also with the strength of the dollar, the return of Americans.

The latest purchase of Séverine in Costa Brava for one HTBIS customer?

Our latest sale is a very nice house in the chic area of s’Agaro located between Playa de aro and St feliu de Guixols. With a list price of 469,000 and a final price negotiated at 450,000 for a European family. This is a house located in a residence with few co-owners, with garden and swimming pool, ideally placed at 5 minutes walk from the beach and shops.

The objective for this family is to spend their holidays there but why not to live there in a few years. The search for a healthy and well-frequented neighbourhood was important!

Congratulations Séverine and team on this last deal, another happy customer of HTBIS. As we always say: a local property hunter means, a quicker process with fewer risks and savings.

Have a look at the full profile of Séverine our property hunter in Girona and the Costa Brava here and check the last property she bought for her customers.

Read more: the six reasons why working with a property hunter in Spain.

 

Find all our best Spanish Costas infographics: Costa Brava, Costa del Sol, Costa Blanca, Costa Barcelona, Balearic Islands, Canary Islands,…

The Costa Blanca 2023 real estate forecast

Valérie wrote this feedback, she is our local property hunter in Costa Blanca.

What is the current activity on the property market in Costa Blanca?

Economic crises do not always have the same impact on the property market. The Costa Blanca is a very popular area for Belgians and English speakers. This area, which stretches from Denia to Horadada, offers less expensive products than the Costa Brava or the Costa del sol. Its main airport in Elche, next to Alicante, provides direct connections from the main European airports, and its well-developed rail network with direct lines from Madrid ensures a continuous flow of traffic and a certain economic dynamism. The demand comes largely from foreign investors, mainly European, but its proximity to Madrid also generates domestic demand.

What is the 2023 outlook for the property market in Costa Blanca?

We expect the market to hold up. On the other hand, we believe that there may be opportunities in the new build sector. New developments (houses and flats), particularly in the south of Alicante, have reached a certain peak in recent years and we are therefore waiting to see the movements in this property sector where real opportunities will be available over the winter. These new buildings provide interesting energy certificates, which have become even more attractive since the energy crisis, and remain secure investments.

What is the current activity on the property market in Costa Dorada?

Before discussing the effects of the economic crisis and the outlook for 2023, it should be remembered that the Costa Dorada stretches from the south of Barcelona to the entire coast of the province of Tarragona. Unlike the Costa Brava or the Costa del Sol, it is frequented by a majority of urban Spaniards from Barcelona, Zaragoza or Madrid who have second homes there. Here the impact of the crisis will be felt more because a majority of Spaniards have borrowed at variable rates and the sudden and sharp increase in these rates will certainly push some owners to sell their second home in order to offset inflation.

What is the 2023 outlook for the property market in Costa Dorada?

This is a market that has been very popular during the covid and a drop in prices in this sector will be all the more welcome for future buyers.

The latest purchase of Sabine in Costa Dorada for one of Howtobuyinspain.com’s customers?

Our latest sale is in L’Ampolla, in the Ebro Delta. This is a less built up and wilder area than the south of Barcelona, but still only 1.5 hours from the main city. Our clients were looking for a house to buy and to invest in, and the search was not easy as many criteria were required. In the end we found them a house with a back to back aspect, 5 minutes walk from the beaches in a quiet and well frequented residential area, with 2 bedrooms. The house is in immaculate condition and therefore needs no work inside, and the low price will allow the new buyers to build a small swimming pool to maximise rental income next summer.

Why the Spanish property market will stay at the top spot for foreigners?

As foreigners are cash buyers 90% of the time, and even when they ask for a mortgage, most of the time it is a small part of the property’s value, so the increase in rates will have a smaller impact on foreigners but yes, foreigners will hesitate more before buying a property in a foreign country as the economic activity will be weaker in the short term.

Here are other positives that will keep foreigners active in 2023:

• Thanks to homeworking, a new major trend is active in any real estate market in the world: people leaving city centres for suburbs and second-tier cities. Relocate to Spain: Spain is one of the best countries in the world for relocating & working remotely
• Spain’s major cities compare very well with European major cities in terms of quality of life and cost of living. Discover the cheapest and most expensive cities to live in in Spain and compare them with any city in the world.
• Spain offers more space for less and so, it is easy for foreigners to upgrade from where they are now.
• All our partners, everywhere in Spain had a very busy year in 2022: lawyers, developers, property hunters,… It was really impressive.
• Spanish property prices remain very competitive vs other international markets.
• Mortgage rates remain cheap in Spain if you compare it to inflation, mortgages are much much lower and that means that it remains interesting to take a mortgage to hedge this inflation risk.

• Transactions’ volumes are strong in 2022 across all the Spanish local markets: rising by more than 20% getting back to pre-covid levels (and a little bit more).
• Activity was at the highest since 2007 and both Spaniards and foreigners are active, which means the trend is broad-based and not only in certain areas.
• Foreigners activity is back to the same levels it was “pre-Covid” era.
• Real estate market in Spain is strong: Have a look at our detailed quarterly report with all the prices’ evolution for the top 20 Spanish cities: Spanish quarterly property report.
• We note that the major cities are back to their pre-Covid levels: Barcelona, Madrid,…
• Second-tier Spanish cities all over Spain are rising the most while staying cheaper than the national average
• Inflation is rising everywhere in the world… This means that every day, currencies lose their value. So, one of the best hedges against inflation is holding “real assets”. There are not a lot of alternatives if you want to protect your savings against inflation. One other move could be for people to relocate towards Spain as Spain has a much lower cost of living (even more since the energy crisis).
• The rise in raw material prices has resulted in a more than 10% increase in production costs over the last two years. This will increase the prices of the new building developments and reduce supply in the long term.
• New build properties are not in oversupply: on the contrary, it remains under control and demand was strong in 2022.

The 2023 outlook from other real estate experts

• The bank of Spain predicts a return of 10% for the Spanish real estate market
• BBVA Research forecasts a slight contraction in home sales in 2023 and a 2% price increase in Spain. “BBVA Research prevé una ligera contracción de las ventas de vivienda en 2023 y un incremento del precio del 2% en España“
• ING predicts some weaker performance for the real estate market in Spain with a decrease of -3,4%, «el crecimiento real de los precios el próximo año será negativo (-3,4%)»
• Fitch, the credit rating company, foresees further growth between 2 and 4% for Spanish real estate in 2023. In fact, Fitch expects price increases for two countries in Europe in 2023: Spain and Italy.

How to find your ideal Spanish property?

We need to differentiate locals from foreigners.

Let’s start first with foreigners. Foreigners are searching either for a second home or a place to retire.

What are the property criteria demanded by foreigners in a post-Covid-19 world?

• close to the beach,
• maximum a one-hour drive from an airport,
• more rooms and a bigger property as foreigners will be more often at their second home,
• some private outside space: terrace, garden, a pool,
• close to sports and children’s facilities,
• restaurants and shops nearby,
• a nice view,
• not too far from the city centre, but not inside!

Discover newbuild properties meeting those criteria from our partners or ask one of our property hunters to search for your dream property anywhere in Spain, we have a local hunter!

Have a look at our interesting articles on the subject: Our ultimate guide to buying your property in Spain is our major guide on the subject but you can find dedicated articles as well:

• Where are the best places to buy a property in Spain?
• The best search tips for buying your Spanish property
• The 7 pitfalls of buying a property in Spain and how to save on your property purchase
• Buying your holiday home in Spain? Get our 40 tips
• Your ideal investment property in Spain: 58 tips to find it
• The best 44 tips for finding your ideal home to retire to Spain

Looking for a local property hunter, a local lawyer, … any real estate expert in Spain? Ask us directly!

Stéphane

Senior analyst and strategist at HTBIS

Check the full HTBIS team here

FAQ on the subject

The post Spanish real estate outlook 2023 appeared first on How to buy in Spain.

Are you buying your dream property in Spain?

Since we started to invest in Spain in 2012, we have built a network of local real estate experts in Spain and became the one stop shop solution for foreigners looking for help to buy a property in Spain.

Foreigners ourselves, we have built this network first to find the solution for ourselves… then we wanted to share our network and our experience with other foreigners.

In two years, our readership grew to more than 140,000 and are coming from more than 210 countries around the world! We are really pleased with that.

It is cheap and easy to buy a property in Spain if you are assisted by the local experts speaking your language. Check our interesting articles:

• Why do you need independent legal and tax partners for your property acquisition in Spain?
• 6 reasons why a personal real estate shopper in Spain will be very helpful for your property search
• Our top 10 pieces of advice for buying your property in Spain
• Top 8 tips for not wasting money when you buy in Spain

The experts from our network are active in ten fields:

1. Property finders
2. B&B
3. Lawyers
4. Tax
5. Architects
6. Money Transfer
7. Mortgage
8. Insure your Spanish property
9. Property survey
10. Renovation

We get many requests flowing in every week as 130.000 foreigners bought a property in Spain in 2022 and the growth is continuing.

Check the feedback we have received lately from our customers:

“Thank you for your help.”

“Your website is really a very interesting source of information.”

“We found the help we wanted for purchasing our property.”

“Thanks to your website, I got the ins and outs of buying a property in Spain.”

How did we help our customers during the last months?

Our activity is strong and we can’t update this page regularly as we have to manage the requests coming in. We receive the most requests from England but actually they really come from all over the world. This is why we love it so much.

What are the services people are looking for? Property finders in Spain, mortgage financing thanks to our partnership with a mortgage broker negotiating with all the biggest banks in Spain, legal and tax advice and currency hedging. We started our partnership for your holiday home insurance in Spain in 2019. Last but not least, we have a survey partner if you need any technical review of a property before buying it.

Review some of the last properties bought by our local property hunters everywhere in Spain (at the bottom of the article).

Here is a quick overview of some requests we got in during the last months:

We got close to 300 Requests in 2022!

Here are a few samples of how we helped our customers in 2022:

• A couple from America is looking to invest in Valencia or Barcelona and find their future retirement home

Region: Valencia / Barcelona

Requests:

-Get in touch with our property hunter in the region of Valencia and our property hunter in the region of Barcelona

–Find a lawyer in Valencia and a property lawyer in Barcelona speaking English to assist with the purchase of the property in Spain. May I buy a property in Spain?

–How to finance my Spanish property? as I want to keep my current property for 5 more years before retiring.

–How to hedge currency risk while I purchase my property in Spain as I am American?

• A young manager from Soudan is looking for a new life in Spain.

Region: no precise idea: Valencia / Barcelona ?

Requests:

–How to get a Golden Visa for Spain?

–Find a lawyer in Valencia and a property lawyer in Barcelona speaking English to assist with my Visa application the purchase of the property in Spain

• A couple from Belgium is looking to buy a family house in the Costa Brava

Region: Costa Brava

Requests:

-Get in touch with our property hunter in the Costa Brava region

• A couple from South Africa is looking to invest in Barcelona and find their future home

Region: Barcelona

Requests:

-Get in touch with our property hunter in the region of Barcelona

– Find a property lawyer in Barcelona speaking English to assist with the purchase of the property in Spain.

– A tax adviser in Barcelona to review my tax situation with the property

–How to finance my Spanish property? as I want to keep my current property for 5 more years before retiring.

–How to hedge currency risk while I purchase my property in Spain as I am Not European?

• A Dutch couple is looking to invest in Valencia for a holiday home close to the beach

Region: Valencia

Requests:

-Get in touch with our property hunter in the region of Valencia

–Find a lawyer in Valencia speaking English to assist with the purchase of the property in Spain.

–How to finance my Spanish property?

• A Luxembourg real estate investor is looking to invest in Madrid for rental income.

Region: Madrid

Requests:

-Get in touch with our property hunter in the region of Madrid.

-Get in contact with a local partner for a mortgage in Spain, get a better understanding of the minimum down payment needed to buy a property in Spain.

Example of customers’ other requests:

• A customer from Belgium found his holiday home in Andalusia and wanted to make an official bid with a lawyer

Our tip: never make an offer or sign before your lawyer saw the offer.

Region: Andalusia, Costa de Almeria

Requests:

-Get in touch with our property lawyer in the region of Costa de Almeria

-Check all the paperwork

• A couple from America looking to retire in the Valencian Community in 2019

Region: Valencia, Valencian Community

Requests:

-Get in touch with our property hunter in the region of Valencia

–Find a lawyer in Valencia speaking English to assist with the purchase of the property in Spain.

–How to get a mortgage in Spain as a foreigner?

–How to hedge currency risk while I purchase my property in Spain?

• An Australian couple looking to get the Golden Visa in Spain and buy a property in Barcelona

Region: Barcelona, Catalonia

Requests:

-Get in touch with our property hunter in Barcelona

–Find a lawyer to assist with the property purchase and with the Visa procedure.

–Money Transfer/currency risk: the purchaser needs to exchange Australia Dollars into Euros

• An English couple looking to know how to proceed to get a mortgage in the Valencian Community

Region: Valencia, Valencian Community

Requests:

-Understand how to get a mortgage in Spain as a foreigner

• A customer from England toured Spain during a full month looking for a horse-property to retire in Spain and found it in the region of Tarragona.

Region: Tarragona, Costa Daurada

Requests:

-Get in touch with our property lawyer in the region of Tarragona

-Find an architect in the Costa Daurada for assisting with a first survey of the property

–Money Transfer and currency hedging: the purchaser is from England and needs to exchange Sterlings into Euros

• A customer from Denmark is looking to buy a luxury property in Barcelona as a second home

Region: Barcelona, Costa de Barcelona

Requests:

-Get in touch with our property hunter in Barcelona

-Learn more about the legal and tax aspects of purchasing a property in Spain as a foreigner

• A Saudi investor had a budget to invest in a property in Madrid for rental income.

Region: Madrid

Requests:

-Get in touch with our property hunter in the region of Madrid.

-Get in contact with a local partner for a mortgage in Spain, get a better understanding of the minimum down payment needed to buy a property in Spain.

• A Dutch looking to retire in Alicante

Region: Alicante, Costa Blanca

Requests:

-Get in touch with our local property lawyer in the region of Denia

-Get in contact with a local partner for a mortgage, get a better understanding of the minimum down payment needed to buy a property in Spain.

• An institutional investor looking to invest in Madrid and Barcelona

• A Dutch looking to retire in Barcelona

Region: Barcelona, Costa de Barcelona

Requests:

-Get in touch with our local property lawyer in the region of Barcelona

-Understand the aspects regarding the Spanish NIE, why do I need it as a foreigner?

• A Brittish looking to retire in 6 months in Spain

Region: Many regions

Requests:

-Where can I find the most for my money?

-Rent my property 6 months per year to get some revenue

• A customer from Switzerland looking to buy in Andalusia

Region: Andalusia, Mijas

Requests:

-Get in touch with our local property lawyer in Andalusia

-Get in touch with our property hunter in the Andalusia

-Get in contact with a local partner in Spain for a mortgage

• Another customer from Switzerland looking to buy a second home in the old city centre of Girona

Region: Girona, Costa Brava

Request:

-Get in touch with our property hunter in the Costa Brava

So don’t hesitate, ask us, ask our property experts in Spain.

5 Reasons why you should work with our experts?

1. We work with the best local professionals having the highest standards and speaking your language!
2. We do the follow-up with our customers. We want to be sure that they are happy with the service provided.
3. We ask our partners to provide the best service at a competitive price.
4. Our partners are part of our network and want to stay partners with us: they will continue to do everything to remain part of our network.
5. We confirm every year if the partners remain members of our network.

Looking for a property lawyer in Spain? Follow the link and get one of our local lawyer.

Looking for another real estate expert in Spain: Mortgage, Insurance, Survey of property, Property hunting, …? Ask us directly one of our 100+ local partner!

Stéphane

Senior analyst and strategist at HTBIS

Check the full HTBIS team here

The post Buying your property in Spain? appeared first on How to buy in Spain.

Where are foreigners buying properties in Spain in 2022?

Which nationalities are active? Are they residents or not? Which nationalities are buying Real Estate in Spain? What price do they pay?

Europeans are buying properties in Spain as never: 137,000 properties bought by foreigners. Of course, we see many Europeans active as usual and the United Kingdom is still the first country to buy properties in Spain. A new trend is that we see foreigners coming from further: Latin America with Argentina and Venezuela, America and China are there too. Americans are benefitting from a steep discount: the euro is cheaper by 20% in 2022 vs the dollar.

A quick reminder before starting this interesting subject, please remember that if you want to buy a property in Spain, you need an NIE number, read our detailed article for more information: Your ultimate guide to your Spain NIE number – NIE Spain. Another interesting article we would recommend: How to buy a property in Spain as a foreigner? At Howtobuyinspain.com we have the best experts in our network to assist you everywhere in Spain. As you will see in this article, we have the best tools and database to know where the market is and what are the trends. Thanks to that, we help our customers to make the best deals in Spain.

As for all our articles, in this article, you will find interactive charts showing detailed data with a mouse click on it and we have static charts available for download. Please note that our interactive charts have always the most recent data as they are linked to our databases. Of course, our static charts are regularly updated.

1. Which nationalities are buying properties in Spain?

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

What was the activity in the Spanish real estate market up to June 2022?

• 703,331 property transactions for the last 12 months: +18% yearly growth
• property activity by Spaniards increased by 13% year-on-year to 562,956
• property activity by foreign buyers increased by 47% year-on-year to 136,921
• This equals 19% of all the property transactions that occurred in Spain.
• 45% of the transactions were carried out by non-resident foreigners and 55% 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 the EU buying properties in Spain?

For the last 12 months to the end of June 2022, the most active nationalities were :

• the British with 11.2% of the property purchased by foreigners in Spain,
• the Germans with 10.3% of the property purchased by foreigners in Spain,
• the French with 8% of the property purchased by foreigners in Spain,
• the Romanians with 6.7% of the property purchased by foreigners in Spain,
• the Italians with 5.9% of the property purchased by foreigners in Spain,
• the Belgians with 5.2% of the property purchased by foreigners in Spain,
• the Dutch with 4.9% of the property purchased by foreigners in Spain,
• and the Swedish with 4.2% of the property purchased by foreigners in Spain,

Check our foreigners’ profiles and buyers guides: What are the ideal Spanish properties for Belgians Chinese Dutch English French Germans Italians Moroccans
Romanians Russians Swedish?

Discover the best new build projects in Spain available right now

Most active nationalities outside the EU buying real estate in Spain

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

such as Morocco (7.7%), China (2.6%) or Russia (2%), America (1.6%) and other countries outside the EU 11.2%

If you want to live in Spain, have a quick check at our interesting article on the Golden Visa: Golden Visa in Spain: Your ultimate guide!

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:

Here is the same info reproduced with a pie chart:

Source: Centro de Información Estadística del Notariado de Espana

Which nationalities are buying more properties during the last 12 months to June 2022?

Of course, Europeans are very active in the property market in Spain. Most Europeans come from northern countries. A more recent trend we noticed at howtobuyinSpain in 2022 with many new customers flowing in: Americans are buying actively everywhere in Spain, thanks to the weak Euro vs Dollar. Yes, the Euro lost 20% this year, not bad for Americans looking for bargains. Have a look at our paper written by our property hunter in Madrid for more on that: Americans are buying properties in Madrid.

Here are the countries increasing the most their property purchases in Spain in 2022 vs 2021 (last 12 months to June):

• Netherlands +101%
• Germany +81%
• Ireland +95%
• Norway +72%
• Denmark +70%
• USA +69%
• Sweden +66%
• Switzerland +62%
• Argentina +45%
• France +41%
• Belgium +36%
• UK +36%
• China +31%

Source: Centro de Información Estadística del Notariado de Espana

Which nationalities are less active during the last 12 months to June 2022?

All countries have a positive growth

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

This was the situation end of 2016 when we wrote this article for the first time: we keep the same top 3 nations.

Foreigners living in Spain are more active

• Foreigners living in Spain recorded 74,643 operations, 26% more than one year before.
• Non-resident foreigners bought 62,278 properties, an increase of 84% 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. Covid had its impacts: people wanted to remote work from a nice place if they could: Spain is a nice option. Others wanted to enjoy a better quality of life: more space, more sun, a better quality of life… while of course, the cost of living in Spain is much lower than in many places in the world and in Europe. For more on that, read our articles: Which are the cheapest cities to live in Spain? The cost of living in Spain vs the UK, Relocate to Spain? Spain is one of the best countries in the world for relocating and for working remotely.

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

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

2. Where are foreigners buying properties in Spain?

What are the main regions in Spain where foreigners are buying real estate?

Same info in a downloadable format:

Source: Centro de Información Estadística del Notariado de Espana

What is the evolution of each region in Spain during the last 12 months to June 2022?

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

Most active regions – The 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 the fourth quarter of 2021 are

• The Balearic Islands with 39% of all transactions,
• The Canary Islands with 26% of all transactions,
• The Valencian Community with 24% of all transactions,
• Murcia with 17% of all transactions,
• and Andalusia with 13% of all transactions.

Check our interactive chart on that:

Most active cities where foreigners are buying the most real estate in Spain vs Spaniards?

According to the “Colegio de Registradores de la Propiedad”, the cities where foreigners are the most active (vs Spaniards) in the fourth quarter of 2021 are:

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

Check our interactive chart on that:

Source

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:

Remember the infographic we did on the subject last year, it remains nearly the same in 2018!

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

Check the evolution of the price paid for each Spanish region since 2007 by foreigners:

The average price per square meter of properties bought in Spain by foreigners increased by 2% year-on-year to June 2022. The acceleration of real estate prices was recorded both among property transactions done by non-residents and by residents, although the former paid higher prices than the second ones, € 2,522/ m² against € 1,622 / m², respectively (with an average of € 2,062/ m²)

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

• Non-residents are buying top-notch second homes in more expensive locations: expensive cities and premium areas with sea views and large terraces for instance. They are going for the best properties on the market.
• Non-residents who are buying a second home in Spain are wealthy and have a higher budget from start.
• Non-residents are buying newbuild properties in Spain and newbuild properties are more expensive than resale,
• Some new “resident foreigners” relocate to Spain because of the high quality of life in Spain and the low cost of real estate in Spain. So they are looking to start a new life they can afford and will go for low-cost properties inland. Read more on that in our article: Which are the most expensive and cheapest cities to live 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 (the year before the crisis) on this chart:

In terms of levels, the average price per square meter paid by foreigners continued to register strong differences between each region. End of June 2022, it was below the national average
of € 1,741 in 12 of the 17 Regions. Please note that the average paid per square meter by foreigners is € 2,062.

Regions under €1,000:

Extremadura, Castilla-La Mancha, La Rioja, Castilla y León, Aragón and Galicia.

Regions between € 1,000 and the national average paid by foreigners for real estate €1,741

Murcia, Asturias, Navarra, Cantabria and the Valencian Community

Regions above the national average for properties in Spain € 1,741

• The Canary Islands €2,195,
• Catalonia €2,249,
• Basque Country €2,230,
• Madrid €2,893,
• and Baleares €3,894.

Interestingly, all those regions are areas of interest to foreigners apart from the Basque Country, a region much appreciated by the French.

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 for one year. The regions are Alphabetically sorted.

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

Spanish regions with the fastest increasing prices over the last year to June 2022

Spanish regions with decreasing prices over the last year

• None

If you want to read more on the subject and you missed our paper of last semester: Which are the top 10 Spanish cities where foreigners are buying properties NOW? And don’t miss our property buyers guide written for any foreign country.

Source: Read the full paper in Spanish here.

Who are the foreigners paying the most in Spain for their properties?

As of June 2022, here is our alphabetical ranking of real estate prices paid by foreigners in Spain:

• People from Argentina pay on average 1759 € per square meter for their properties in Spain.
• People from Belgium pay on average 2104 € per square meter for their properties in Spain.
• People from China pay on average 1741 € per square meter for their properties in Spain.
• People from Denmark pay on average 2870 € per square meter for their properties in Spain.
• People from Ecuador pay on average 1198 € per square meter for their properties in Spain.
• People from France pay on average 2149 € per square meter for their properties in Spain.
• People from Germany pay on average 2657 € per square meter for their properties in Spain.
• People from Ireland pay on average 2092 € per square meter for their properties in Spain.
• People from Italy pay on average 2103 € per square meter for their properties in Spain.
• People from Morocco pay on average 694 € per square meter for their properties in Spain.
• People from the Netherlands pay on average 2252 € per square meter for their properties in Spain.
• People from Norway pay on average 2701 € per square meter for their properties in Spain.
• People from other countries in EU pay on average 2148 € per square meter for their properties in Spain.
• People from other countries in the world (outside EU) pay on average 2015 € per square meter for their properties in Spain.
• People from Portugal pay on average 1782 € per square meter for their properties in Spain.
• People from Romania pay on average 1097 € per square meter for their properties in Spain.
• People from Russia pay on average 1989 € per square meter for their properties in Spain.
• People from Sweden pay on average 2701 € per square meter for their properties in Spain.
• People from Switzerland pay on average 2567 € per square meter for their properties in Spain.
• People from the UK pay on average 2003 € per square meter for their properties in Spain.
• People from Ukraine pay on average 1612 € per square meter for their properties in Spain.
• People from the USA pay on average 2837 € per square meter for their properties in Spain.

Here is our downloadable infographic on that:

Source: Centro de Información Estadística del Notariado de Espana

Of course, there are many reasons to explain those differences:

• The region where those nationalities are buying on average,
• The location of the property: sea view? countryside? within a city?
• The type of properties: villa or apartment, newbuild or resale, with terrace or plot or not,…

So, those are just “statistics” but they are interesting as price discrepancies between foreigners are quite big when foreigners buy properties in Spain.

4. How to start your property search in Spain?

Here is our A to Z must-read guide: Our ultimate 2023 guide to buying your property in Spain.

At HTBIS, we assist foreigners with their property search in Spain thanks to our network of local partners: legal advisers, tax advisers, property hunters and much more. Discover all our partners here.

Looking for an expert in Spain? Ask us directly!

Stéphane

Senior analyst and strategist at HTBIS

Check the full HTBIS team here

FAQ

The post Where are foreigners buying properties in Spain in 2023? appeared first on How to buy in Spain.

Is electricity more expensive in Spain than in Europe?

As we wrote a while ago, in our article: Which are the cheapest cities to live in Spain? Spanish electricity prices used to be more expensive than the rest of Europe. Since 2022, this is not the case anymore.

The electricity price in Spain is 193 €/MWh as of the 19th of September 2022 vs 175.33 €/MWh as of the 26th of August 2022 at the peak of the energy crisis.

Does it mean that the price in Spain is cheaper than in other European countries? As of August 2022, at the peak of the energy crisis, the clear answer is yes! Not one country had a cheaper rate!

Which country has the cheapest electricity in Europe at the peak of the crisis?

At the peak of the crisis this summer, on the 26th of August 2022, here was the situation:

The electricity price in Spain was 175 €/MWh and here is the alphabetical ranking of all the European electricity prices and comparison vs Spain.

• The electricity price in Austria was 707 €/MWh, 403% of the price of electricity in Spain.
• The electricity price in Belgium was 700 €/MWh, 399% of the price of electricity in Spain.
• The electricity price in Bulgaria was 402 €/MWh, 229% of the price of electricity in Spain.
• The electricity price in Croatia was 708 €/MWh, 404% of the price of electricity in Spain.
• The electricity price in Czechia was 703 €/MWh, 401% of the price of electricity in Spain.
• The electricity price in Denmark was 699 €/MWh, 399% of the price of electricity in Spain.
• The electricity price in Estonia was 468 €/MWh, 267% of the price of electricity in Spain.
• The electricity price in Finland was 468 €/MWh, 267% of the price of electricity in Spain.
• The electricity price in France was 706 €/MWh, 403% of the price of electricity in Spain.
• The electricity price in Greece was 402 €/MWh, 229% of the price of electricity in Spain.
• The electricity price in Germany was 682 €/MWh, 389% of the price of electricity in Spain.
• The electricity price in Hungary was 708 €/MWh, 404% of the price of electricity in Spain.
• The electricity price in Italy was 688 €/MWh, 393% of the price of electricity in Spain.
• The electricity price in Lithuania was 565 €/MWh, 323% of the price of electricity in Spain.
• The electricity price in Latvia was 563 €/MWh, 321% of the price of electricity in Spain.
• The electricity price in the Netherlands was 693 €/MWh, 396% of the price of electricity in Spain.
• The electricity price in Norway was 384 €/MWh, 219% of the price of electricity in Spain.
• The electricity price in Poland was 352 €/MWh, 201% of the price of electricity in Spain.
• The electricity price in Portugal was 175 €/MWh, 100% of the price of electricity in Spain.
• The electricity price in Romania was 709 €/MWh, 404% of the price of electricity in Spain.
• The electricity price in Serbia was 684 €/MWh, 391% of the price of electricity in Spain.
• The electricity price in Slovakia was 708 €/MWh, 404% of the price of electricity in Spain.
• The electricity price in Slovenia was 708 €/MWh, 404% of the price of electricity in Spain.
• The electricity price in Sweden was 211 €/MWh, 121% of the price of electricity in Spain.
• The electricity price in the United Kingdom was 636 €/MWh, 363% of the price of electricity in Spain.

Source

Electricity prices in Europe in €/MWh on 26 August

This was nearly the peak of electricity pricing this summer. Have a look at our interactive chart, you can click on any country.

Comparison of electricity prices in Europe vs Spain on 26 August

In this chart, Spain’s value is 100% (light green) and all the other countries are relative to Spain, i.e. a number of 200% means that the price is twice the price of Spain. This will help you to know how much you would save on your utilities, (gas pricing is close to electricity pricing) if you live in Spain. Have a look at our interactive chart, you can click on any country.

What are the current Electricity prices in Europe as of mid-September?

Electricity prices in Europe in €/MWh on 19th September – interactive chart prices in Europe in €/MWh

This was nearly the peak of electricity pricing this summer.

Click on any country

Comparison of electricity prices in Europe vs Spain on 19th September

In this chart, Spain’s value is 100% (light green) and all the other countries are relative to Spain.

The electricity price in Spain was 193.03 €/MWh on the 19th of September 2022. A little bit higher than at the peak of August, maybe as renewable sources were less abundant on that day.

Here are the Electricity prices for all the European countries on the 19th of September 2022 sorted alphabetically:

• The electricity price in Austria was 284 €/MWh, 147% of the price of electricity in Spain.
• The electricity price in Belgium was 274 €/MWh, 142% of the price of electricity in Spain.
• The electricity price in Bulgaria was 279 €/MWh, 145% of the price of electricity in Spain.
• The electricity price in Croatia was 285 €/MWh, 148% of the price of electricity in Spain.
• The electricity price in Czechia was 268 €/MWh, 139% of the price of electricity in Spain.
• The electricity price in Denmark was 261 €/MWh, 136% of the price of electricity in Spain.
• The electricity price in Estonia was 177 €/MWh, 92% of the price of electricity in Spain.
• The electricity price in Finland was 100 €/MWh, 52% of the price of electricity in Spain.
• The electricity price in France was 315 €/MWh, 164% of the price of electricity in Spain.
• The electricity price in Germany was 249 €/MWh, 129% of the price of electricity in Spain.
• The electricity price in Greece was 376 €/MWh, 195% of the price of electricity in Spain.
• The electricity price in Hungary was 276 €/MWh, 143% of the price of electricity in Spain.
• The electricity price in Italy was 446 €/MWh, 231% of the price of electricity in Spain.
• The electricity price in Lithuania was 275 €/MWh, 143% of the price of electricity in Spain.
• The electricity price in Latvia was 275 €/MWh, 143% of the price of electricity in Spain.
• The electricity price in the Netherlands was 266 €/MWh, 138% of the price of electricity in Spain.
• The electricity price in Norway was 153 €/MWh, 79% of the price of electricity in Spain.
• The electricity price in Poland was 157 €/MWh, 81% of the price of electricity in Spain.
• The electricity price in Portugal was 193 €/MWh, 100% of the price of electricity in Spain.
• The electricity price in Romania was 279 €/MWh, 145% of the price of electricity in Spain.
• The electricity price in Serbia was 306 €/MWh, 159% of the price of electricity in Spain.
• The electricity price in Slovenia was 289 €/MWh, 150% of the price of electricity in Spain.
• The electricity price in Slovakia was 274 €/MWh, 142% of the price of electricity in Spain.
• The electricity price in Sweden was 102 €/MWh, 53% of the price of electricity in Spain.
• The electricity price in Switzerland was 317 €/MWh, 165% of the price of electricity in Spain.

Source

As you can see, the situation is back to a more stable situation nearly everywhere in Europe, although pricing remains expensive over the last 2 years. Interesting to note, Spain, keeps its position as one of the countries with the lowest prices for electricity in Europe.

How much will you save on your utilities by living in Spain?

A family of four people will consume around 4000kwh.

Of course, owning a pool, AC or hot boiler working with electricity could have an impact on your consumption.

Don’t forget either that you have to add transport, distribution and taxes, to the price of electricity to have the full amount of your Electricity invoice.

You could save about €2,000 a year by living in Spain

if prices stay on the high side of the range of last year.

The last line on your electricity bill as in Spain could be a monthly cost to have a specific power.

So, to sum up, you could save between 10% to up to 75% of your utility bills by living in Spain rather than elsewhere in Europe. Check the section just above this one “Comparison of electricity prices in Europe vs Spain on 19th September” to have precise data on electricity costs for all European countries so you can calculate your actual savings.

Why are electricity prices in Spain lower than in Europe?

Unlike other European partners, Spain does not depend on Russian energy imports and has a guaranteed supply; in fact, they are exporting electricity, natural gas and oil products.

So, there are many reasons why electricity prices are competitive vs other European countries:

• As of 2022, Spain has close to 40% of all its energy consumption coming from renewable.

Source: Red Electrica Corporation

• Check the daily report on how electricity is produced in Spain. Data are from “Red Electrica Corporation” the company managing energy distribution in Spain.

Source: Red Electrica Corporation

• Spain has the biggest infrastructure of LNG terminals in Europe, with 40% of the total volume, and Gas could be an energy source to produce electricity.

Spain has the biggest LNG terminal infrastructure in Europe. Source: The Economist.

• Spain’s target is to be on 100% renewable energy in 2050.
• Other energy sources such as fossil fuels have more stable prices in Spain
• And last but not least, in May 2022, Spain implemented a unique system by capping the price of gas sold to the electricity system, the electricity bill will be lower for all citizens, “families, households, small and medium-sized enterprises, the self-employed and, very importantly, industry

In two words, the electricity supply in Spain is much more stable than in many European countries.

France had supply issues with as many as 50% of its nuclear power plants while we all know that Germany relied on Russian gas for which supply was interrupted.

If you want to read more, an interesting site is the site of European Commission on Electricity prices and the world energy report 2022 written BP.

Long term, Spain intends to continue to improve its infrastructure with the +SE Plan that will reinforce energy infrastructures to boost gas exports to France, Italy and the rest of the EU.

The new Energy plan “Plan + Seguridad Energética” of the Spanish government

The Council of Ministers approved the new Energy Security Plan in October 2022. This plan has many goals:

• • increase the protection of the population against the price crisis caused by the war in Ukraine,
  • reduce the country’s gas consumption by between 5.1% and 13.5%, improve energy autonomy and increase the competitiveness of the economy,
  • increase energy exports, acting in solidarity with the rest of the European Union (EU).

The Plan+ SE contains 73 complementary and synergetic measures, structured in six large blocks:

• energy saving and efficiency;
• boosting the energy transition;
• protection of vulnerable consumers,
• households and businesses;
• fiscal measures;
• strategic autonomy;
• and solidarity with the rest of the European partners.

Some of these measures have already been approved or launched in previous weeks, such as the reduction of VAT on natural gas from 21% to 5% or the reform of the regulated electricity tariff (PVPC) in order to reduce its volatility. Other measures require a legislative review (to be done soon) or are focused on the medium and long term.

Read more: Plan + Seguridad Energética

What is the average utility bill in Spain?

An average family of 4 people will consume 4,000 kWh per year. Consumption by private persons is only accounting for 36% of the electric demand in Spain.

What is the cheapest time to use electricity in Spain?

Consumption is divided into three time periods (peak, flat rate and off-peak).

The peak period is the most expensive, from 10 am to 2 pm and from 6 pm to 10 pm, Monday to Friday, except on public holidays.

The flat rate period is cheaper and is from 8 am to 10 am and from 2 pm to 6 pm and from 10 pm to 6 am.

How much does it cost to run an AC in Spain in 2022?

A good AC will consume about 1000 Wh, which means that it won’t cost a lot if you use it smartly.

How can you save on your electricity bill?

• Consume at the best time of the day when demand is off-peak. (see above for more)
• Check all your electrical appliances and check how much they consume on a yearly basis. Maybe changing your fridge for a new more efficient one?
• Check your heating and cooling systems to have Energy efficient ones.
• Change your lamps to LED lamps as they consume much less.
• Turn off electrical appliances if you don’t use them and don’t let them on “standby”.

Is it too late to invest in solar panels?

If you produce your own electricity (and eventually store it with a battery), you will save a lot and have a nice return on your investment. The Spanish government gives another boost to solar roofs, energy communities and self-consumption, with 500 million euros and more facilities in its new Energy plan “Plan + Energy” (see above for more). It will also speed up the processing of renewable projects and plans to modify the current 2021-2016 Electricity Plan to make strategic projects viable and launch a new 2024-2029 Plan to integrate more renewables.

How much does it cost to install solar panels?

For a household consuming 4000kw per year, you should count about €6500. If you want to add a battery of 5kw, you will have to add about €3000. So, your investment for the solar panels should be reimbursed in less than 6 years depending on where you live.

FAQ on electricity costs in Spain

Looking for a local property hunter, a local lawyer, … any expert in Spain?

Ask us directly!

Stéphane

Senior analyst and strategist at HTBIS

Check the full HTBIS team here

The post Electricity prices in Spain are up to 75% cheaper than in European countries! appeared first on How to buy in Spain.

A pied-à-terre in Madrid

Profile of the buyer

a lady residing in the USA, with her son living in Spain (not in Madrid).

Yes indeed, another buyer benefiting from the 20% loss of the Euro against de dollar during the last year.

The objective of this real estate investment?

to buy a small apartment in Madrid to be used by her son on weekends, and by herself when she came to visit. She did not want to do any kind of renovations. So, not really a remote working spot but we could consider it as one.

In which neighbourhood should you buy an investment property in Madrid?

she wanted a neighbourhood that had lots of small shops and “neighbourhood life” but that wasn’t too touristy or expensive. It had to be well connected to the airport and to the centre. We recommended several options, and she chose to focus on Plaza de Castilla and Prosperidad.

The perfect jewel property found in Madrid

a bright, just-renovated studio apartment on a relatively quiet street in Prosperidad, two blocks away from the subway and 9 minutes walking to Avenida de América (a major transportation hub).

Special considerations for this property search

An initial challenge was that she was going to spend only a few days in Madrid to view properties, so we did thorough prep work to filter and view properties prior to her arrival, to narrow down the shortlisted properties to only the best ones. Also, the property she finally selected had formerly been a shop and was still in the process of being inscribed in the Property Registry as a residence. We negotiated a deal by which she would pay a small deposit to the seller, and then pay a monthly “rental” fee that would be fully deducted from the purchase price once it got properly registered and the deeds could be signed. This way she didn’t run the risk of buying a property with a legal inconsistency but still had the benefit of using it right away.

Is the Madrid property market already at sky-high prices?

Madrid offers some of the best returns in Europe. The entry price is extremely low, and average returns on Madrid property investment are some of the best in Europe- particularly among leading capital cities.

If you want to know more on that subject, have a look at our article: “What return will you make on your Spanish property?”

About Agnes and her team, our Property hunter in Madrid.

We help clients locate, purchase and renovate property in Madrid. Get in touch today if you’d like to learn how we can help you invest in Madrid.

Send your request to our property hunter in Madrid, or follow the link if you are looking for a property hunter anywhere else in Spain. Ask us directly and benefit from the strength of our network!

Check the full profile of Agnes, our local partner, Property Hunter in Madrid

The post Remote working from your Madrid’s pied-à-terre? appeared first on How to buy in Spain.

A low-maintenance rental property in Madrid

Profile of the buyer

a single mother from France, residing in Madrid

Goal of this real estate investment?

She wanted to invest her savings in the real estate market in Madrid, but with a full-time job and a baby she had neither the time nor the knowledge to make a safe, profitable purchase.

Her goal was an apartment she could rent out long-term that would give her the least amount of trouble and would gain value with time. Hands-off management and long-term capital gains were more important than obtaining the highest possible rental yield.

A small budget for this buy-to-let property in Madrid

The total investment (including taxes, fees, renovations, etc.) budget for this apartment was 200,000 to 220,000€ with no mortgage.

This budget is really on the low end of the current market in Madrid.

In which neighbourhood should you buy an investment property in Madrid?

We considered and analysed several neighbourhoods, but due to a combination of proximity to her home, property prices and trends, plus profitability, we focused mainly on the Puerta del Ángel neighbourhood. It’s an area that’s very close to the centre, but just outside of the M30 ring road.

The perfect investment property in Madrid?

After a month and a half of viewing and analysing properties, we found a completely off-market apartment through personal contacts. The apartment had a perfect combination of attractive features for a rental, a superb location right next to the subway, and the right price. The only caveat was that it needed to be upgraded and modernised. The client didn’t have the time or desire to deal with renovations, so we took care of this part as well, requesting and comparing budgets from contractors, and supervising the works. In the end, we handed her the apartment with the tenant already selected and a rental price above expectations.

Let’s check the investment return

• Total investment was 223,500€,
• The rental price was 900€ /month.
• Gross ROI 4.83%, net ROI 4.15%.
• Duration of the project: from start to finish it took us 5 months.

Would renovation add any value?

In this case, there were minor renovation works. If you are able to buy a property at a discount price because it needs some renovation, most of the time, it will be the best investment you could do as renovation works in Spain are not too expensive. Our property hunters do manage those works and we do have teams of renovation workers nearly in all major cities in Spain.

Is the Madrid property market too expensive in 2022?

Madrid offers some of the best returns in Europe. The entry price is extremely low, and average returns on Madrid property investment are some of the best in Europe- particularly among leading capital cities.

Are real estate returns interesting in Madrid vs. other major European cities?

According to Deloitte. Check the rental Yields for the major European Cities, Madrid and Barcelona have rental yields close to 5%.

If you want to read more on real estate investments in Spain, read our article we wrote a few weeks ago: What is the return on your Spanish property investment?… Above 10% according to the bank of Spain (as of May 2022).

Madrid is the 3rd biggest city in Europe in terms of size…

Although Madrid property prices rose in 2017, there is still much room for appreciation. Prices are still 54% off their peaks of mid-2007.

Madrid is the 11th City in Europe in terms of price/m²

Source: Deloitte property Index 2021, Overview of the European Residential Market

About Agnes and her team, our Property hunter in Madrid.

We help clients locate, purchase and renovate property in Madrid. Get in touch today if you’d like to learn how we can help you invest in Madrid.

Send your request to our property hunter in Madrid, or follow the link if you are looking for a property hunter anywhere else in Spain. Ask us directly and benefit from the strength of our network!

Check the full profile of Agnes, our local partner, Property Hunter in Madrid

The post A Madrid buy-to-let property investment appeared first on How to buy in Spain.