Who are the foreign buyers in Spain?

House prices in Spain have been steadily rising since 2016 and reached €2,000 per square metre in October 2023. Having dropped steadily since 2010 to just above €1,500 in 2016, this represents a clear growth in the market. Property prices are expected to slow in 2024 to a predicted 1.1% increase year on year, which is lower than the 2.9% 2023 on 2022 increase, making it a good time to purchase property in Spain.

The rental market has also increased recently, with prices continually rising until reaching €12.1 per square meter in 2023. This makes Spain a good place to invest in property if you intend to rent it out as a holiday or long-term rental.

Foreign buyers made up 15% of total property sales in Spain in the fourth quarter of 2023. Purchasing a home in Spain is still popular with British buyers, who accounted for 10% of sales in October 2023.

According to the most recent figures in the last quarter of 2023 the British accounted for approximately 10 % of property sales. After this, German and French buyers were the most popular, with all foreign purchasers making up 15% of all sales.

During the same period, the increases in purchases by nationality on the previous year were:

These groups are followed by the French, Italians, Romanians and Dutch.

The Spanish property market is also becoming appealing to US investors due to the low value of the euro compared to the dollar.

Another foreign purchase group are the Ukrainians. As of March 2023, the number of Ukrainian refugees in Spain was 186,125, some of whom have bought property there and plan to settle.

It’s not only the good weather and way of life that attracts foreign buyers. There are several other reasons:

• Easy access to Europe – having your own car in Spain gives you freedom. The French, Germans, Belgians and Dutch often drive to Spain, while taking the Channel Tunnel and driving through France is an option for the British.
• International air and seaports – the country also has several major international airports and seaports, making it easily accessible for international travellers. For example, driving from the UK to northern Spain and then heading for your Spanish home is a manageable journey thanks to the ferry ports along the north coast and the often light traffic on the Spanish motorways.

• Affordable property – you get a lot more Spanish property for your money than in most of the rest of Europe and indeed the world.

The table below shows the average property costs for various countries compared to Spain.

Source : Finder

• Growing economy – after the financial crisis of 2008-2014 the economy has returned to a stable situation. You can see the investment in building and infrastructure just by driving around many Spanish towns and cities.
• Return on investment – investing in property in Spain offers a profitable return if you wish to create passive income by renting it out, either as a long-term or holiday let. It also serves as a long-term capital investment as historical trends show property in Spain will appreciate over the years.
• Golden visa – foreign buyers can buy a property for a minimum value of €500,000 which offers residency. This solution is ideal for non-EU investors who want access to the Schengen Area without having to follow the usual residency procedure to live in Spain. It is of particular interest to UK investors since Brexit, which has resulted in the implementation of a series of regulations required to live in Spain. However, make sure this is still the case by the time you read this article, because Spain has announced in the beginning of 2024 its intention to end the Golden visa for home buyers.
• Cost of living – the cost of living in Spain is 23.5% less than in the UK. This takes into account eating out, utility bills, groceries, clothing, sports and leisure and childcare.

The table below shows the average cost of living indexes compared to the countries where most nationalities buy in Spain :

Source : Numbeo

Many foreign buyers choose to retire to Spain to make their money go further whilst enjoying life in the sun. Relocating to Spain as a family due to the cheaper cost of living is another reason foreign buyers move. Not only do they save on daily living expenses but families with children are likely to be able to afford a much more spacious property than in their home country.

• Renovation – if you have the funds available Spain has plenty of run-down properties to renovate and make a profit on.

If you’re thinking of investing in Spain, property can be more affordable compared to prices in the UK and the rest of Europe, especially in certain regions and rural areas, as you can see from the table above.
You’ll find that your budget goes further in Spain, allowing you to purchase a larger property with a swimming pool, large garden or sea views.

Now is an ideal time to buy property in Spain, whether you want an investment, a holiday home or to move permanently, as prices are expected to increase in 2025.