Property transactions by foreigners in Spain reached an all-time high of 21.4% in H1 2023. Nevertheless, foreign purchases of freehold housing dropped 7.5% YoY, ending a positive trend in recent years, mirroring a decline in Spanish buyers due to rising mortgage and housing costs. Among non-resident foreign buyers, Russians, Ukrainians, and Americans showed increased interest. Apartment buildings represent a third of at-risk properties, mainly due to the greater number of multifamily assets, and foreign buyers continue to pay higher prices for their properties than residents and nationals.
Foreign buyers represented 21.4% of property transactions in Spain during the first half of 2023, marking the highest figure on record. However, foreign acquisitions of freehold properties declined by 7.5% year-on-year in the same period, breaking a positive trend seen in previous years. This drop mirrors the decline in home purchases by Spaniards, driven by the rising cost of mortgages and housing. While resident foreign buyers fell by 3.4%, purchases by non-residents declined by 12.4%. The Balearic Islands experienced the largest drop in foreign purchases at 32.0%, while Russians, Ukrainians, and Americans showed increased interest in Spanish property.
In Spain, foreign buyers accounted for 21.4% of property transactions in the first half of 2023, the highest percentage recorded thus far. However, foreign purchases of freehold properties decreased by 7.5% compared to the previous year. The decline contradicts a positive trend observed in the four prior half-year periods. Spaniards have also been buying fewer homes due to increasing mortgage and housing costs. Consequently, the proportion of property purchases made by foreigners in Spain is at an all-time high.
Between January and June 2023, non-Spanish residents conducted 67,983 property transactions, with 56.8% attributed to resident foreigners, a decline of 3.4%. Meanwhile, purchases by non-residents fell by 12.4%. This data comes from Spain's General Council of Notaries.
The sale and purchase of free-market housing by foreign buyers increased in only four regions: Asturias (27.7%), Galicia (14.8%), Murcia (5.5%), and Valencia (1.3%). In contrast, purchases decreased in the remaining thirteen regions, with Catalonia (-4.2%), Castile and Leon (-4.8%), and Aragon (-3.3%) performing better than the national average (-7.5%).
The largest decreases were seen in the Balearic Islands (-32.0%), Navarre (-19.7%), and Andalucía (-15.3%). The Basque Country (-13.3%), the Canary Islands (-12.6%), Castile-La Mancha (-12.5%), Madrid (-11.5%), La Rioja (-11.1%), Cantabria (-9.9%), and Extremadura (-9.2%) recorded more controlled declines.
British buyers represented 9.6% of all transactions (6,498), followed by Germans (8.1%) and Moroccans (7.3%). The remaining non-EU nationalities accounted for 12.8%. While overall foreign sales decreased for the first time in two years, purchases by Russians (50.2%), Ukrainians (41.6%), and Americans (13.6%) increased compared to the first half of 2022.
Non-resident foreign buyers continued to pay higher prices for their properties (2,598 euros per square meter) compared to residents (1,676 euros per square meter) and nationals (1,574 euros per square meter). The average price paid by non-resident foreigners increased by 2.8% year-on-year, while that of residents increased by 2.9%.
Buyers from Sweden (3,036 euros per square meter), Denmark (2,930 euros per square meter), the USA (2,921 euros per square meter), Switzerland (2,812 euros per square meter), Germany (2,724 euros per square meter), and Norway (2,584 euros per square meter) paid the highest average prices per square meter. The average price paid by all foreigners was 2,094 euros per square meter, but this was exceeded by buyers from Russia, France, Italy, the Netherlands, Belgium, and Ireland. On the other hand, Moroccans (689 euros per square meter), Romanians (1,086 euros per square meter), and Ecuadorians (1,335 euros per square meter) paid the lowest prices.
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