Overseas buyers are investing unprecedented sums in Spanish real estate, with non-residents paying an average of EUR 2,715 per square metre in the latter half of 2023, marking a 6.1% annual increase and setting a new record high, according to data from notaries. Additionally, it has contributed to a 2.1% annual increase in the total average home price in Spain, which now stands at EUR 1,712/m2 when accounting for both foreigners and Spaniards. Notably, buyers from Sweden, the USA, Germany, and Switzerland paid the highest average prices per square metre, while those from Norway, Poland, Russia, the Netherlands, France, and Italy likewise surpassed the average price paid by all foreign buyers, while Moroccans, Romanians, and Bulgarians paid the lowest amounts per square metre. In terms of percentage increases, Poles, Russians, and Chinese experienced the most significant price hikes, well exceeding the average increase.

However, this price rise contrasts sharply with a decline in transaction volume. Notary data shows that property purchases by foreigners in Spain are the lowest since the first half of 2021.

However, there are specific regions within the country where foreign property purchases have seen year-on-year increases: Asturias (11.5%), Cantabria (4.0%), La Rioja (3.4%), Murcia (1.8%), and Castile-La Mancha (1.1%).

In terms of total transaction volume, the Valencian Community remains at the top of the Spanish ranking, with 18,919 transactions, accounting for 29.94% of the total. For months, the Levante area has dominated the real estate market, not just for foreign buyers. Additionally, this autonomous region records more transactions than Madrid and Catalonia in the domestic sector.

Experts attribute this growing interest to several factors. These include a sizable and stable residential demand, encompassing primary residences, second homes, and both Spanish and foreign clientele; comparatively affordable prices compared to other regions; attractive returns for investors; excellent transportation links; and the allure of Mediterranean lifestyle.

Particularly in Alicante, this trend has been the primary driving force, attributed to a demographic profile characterised by high activity levels, which are less influenced by price fluctuations and interest rate increases compared to Spanish buyers.

Following closely behind the Valencian Community is Andalusia, with 11,768 transactions completed by foreigners between July and December 2023. It is followed by Catalonia (9,773), Madrid (4,502), the Canary Islands (4,280), and the Balearic Islands (3,028).

The notable Increase in transaction volume in Asturias is worth mentioning, as for the first time, over 700 sales have been recorded by foreign buyers, marking an all-time high for the region.

Asturias has gained traction among international clients in recent years, particularly those seeking rural or non-Mediterranean locations. Interestingly, Ponga reported more demand from foreign buyers than from Spanish buyers, indicating a growing appeal among international clientele.

According to notary data, British buyers topped the list in terms of the highest number of home purchases, accounting for 9.7% of the total transactions (6,155), followed by Moroccans (7.14%) and Germans (7.11%).

Following the completion of 932 transactions, a significant portion of this record stems from the luxury housing market and the growing interest in prime properties among affluent individuals in Colombia.

Among the Latin American demographics seeking residences in locations like Madrid. They are drawn by the lifestyle and the desire to safeguard their assets from political instability in their home countries.

When examining by residency and autonomous community, French buyers surpassed Germans and British individuals in the latter half of 2023 and dominated the proportion of sales among non-resident foreigners in regions

Among resident foreigners, Moroccan and Romanian nationals emerged as the primary buyers across most regions in the country, except in Galicia, Valencia, and the archipelagos, where Portuguese, British, German, and Italian buyers held a higher share, respectively.