Spanish real estate more popular than ever for foreigners

Publication: 24 May. 2023
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Foreign investors are flocking to Spain’s real estate market, driving a surge in property sales and shaping the country’s housing landscape. According to data collated from Spanish notaries, foreigners are buying more homes in Spain than ever before, with the report revealing that foreigners accounted for an impressive 25% of all residential property sales in Spain last year, a significant increase from previous years.

For those looking to purchase property in Marbella, it’s not hard to see the appeal. With 320 days of sunshine a year, a sophisticated and well-developed infrastructure and a well-established international community, it’s the ideal location for holidays and permanent residence.

Who’s buying?
The report highlights several nationalities driving the surge in property purchases. British buyers continue to lead the way, drawn to Spain’s sunny climate, beautiful beaches, and affordable properties. Scandinavian countries, particularly Sweden and Norway, also feature prominently among foreign investors. Furthermore, citizens from France, Germany, Belgium, and the Netherlands are increasingly recognising the potential of Spain’s real estate market.

Marbella and its surroundings are a perennial favourite, however, Spain’s diverse regions offer a wide array of options for international buyers. Coastal areas such as the Costa del Sol, Costa Blanca, and Costa Brava are always going to be popular due to their stunning beaches and Mediterranean lifestyle, meanwhile major cities such as Barcelona and Madrid appeal to investors looking for vibrant cultural scenes and business opportunities. Additionally, picturesque inland regions like Andalusia and Valencia are also popular for their tranquil surroundings and affordable rural properties.

Why are they buying?
Foreign buyers are not only acquiring properties for personal use but also recognising the investment potential of the Spanish real estate market. With a growing demand for holiday rentals, many investors are capitalising on the lucrative holiday rental market. Spain’s popularity as a tourist destination ensures a constant stream of visitors, making it an attractive option for those seeking rental income. Moreover, long-term rentals are much sought-after, particularly in cities and university towns, offering stable returns on investment.

One interesting finding from the report is that the average price being paid is at an all-time high, at €2,089m2 between July and December, the highest since 2008 – far higher than the Spanish residents themselves are paying at €1,533m2, although that is also up 3.3% from the following year. This would seem to follow the trend that we have also noted, whereby while house prices in general are rising, in Marbella the luxury, high-end property market is growing exponentially.

What are they buying?
With our extensive knowledge of the local Marbella property sector, we are pleased to share that it remains buoyant, with demand often surpassing supply. New build properties, including luxurious villas and exclusive apartment complexes, are in high demand among buyers. In fact, in certain areas, it has become increasingly challenging to find older-style properties due to developers and individuals purchasing them for renovation purposes, whether it’s for resale, personal use, or rental investments. This trend highlights the attractiveness of Marbella’s real estate market and the potential for both contemporary and refurbished properties to meet the evolving needs of buyers.

With the Spanish property market still holding strong, there has never been a better time to invest, whether it’s for a holiday property or permanent residence. Our real estate experts are here to guide you through the process and would be delighted to discuss your requirements. Please don’t hesitate to give us a call and start your Spanish property journey.