MARKET-TRENDS

Spain Residential Real Estate Market Trends

Rise in International Property Buyers in Spain

Spain is a popular, safe, and stable international destination for visitors, investors, and those looking to relocate with a rich cultural tradition. International interest from buyers both inside and outside the European Union is increasing. Real estate regained popularity, especially in seaside resorts and Spain's major cities. In terms of investment, Madrid, Valencia, and Malaga are the provinces with the highest possibilities for recovery.

Other places, on the other hand, are expected to recover quickly. The Balearic Islands and Barcelona, for instance, are two of the most popular tourist destinations in the world. British property buyers, especially British retirees, were the foreign nationals who contributed the most to real estate investment in Spain. Now the situation changed, and many are selling their properties.

In the second quarter of 2021, the British continued to lead the investment rankings, according to the Land Registry, accounting for 9.5% of total purchases in the country. The total number of foreign buyers in Spain in the second quarter of 2021 was just over 13,600. While the numbers of foreign buyers are still below pre-pandemic levels, data from the Spanish Land Registry (Registradores) shows the proportion of foreign buyers across the country on a whole increased by 0.23 percentage points, from 9.52% in the first quarter of 2021 to 9.75% in the second quarter of 2021. It also suggests that international buyers are beginning to return.

Centro de Información Estadstica del Notariado provided statistical figures on real estate sales for the second half of 2021. The data presented in the research shows that real estate sales to foreign buyers surged by 41.9% in Spain. Due to a 27.4% growth in the number of foreign purchasers residing in Spain, the Spanish real estate market is looking positive in terms of annual yield. Additionally, the percentage of homes bought by non-resident foreign buyers increased by 64.5%, reaching 54.8%. The Balearic Islands attracted the highest interest in sales of real estate. The Balearic Islands experienced the most significant increase in real estate sales with 81.5%, Authentic Andalusia with 55%, and the golden state Valencia with 44%, followed after.

Source: https://www.mordorintelligence.com