THE SPANISH REAL ESTATE BOOM: FOREIGN BOOM IN 2023

Foreign participation in the Spanish residential market has reached unprecedented levels in 2023. With almost 15% of total purchase and sale operations involving foreigners, the sector shows a clear upward trend, with a notable increase compared to the previous year . This increase reflects a robustness that, despite a slight decrease in the absolute number of transactions, shows the consolidation of international investors in the Spanish real estate scene.

Diversity of buyers

The analysis by nationality reveals a diverse representation in the Spanish market. The British lead the statistics, followed by Germans and French, while buyers from Morocco, Belgium, Italy and Romania also have a significant presence. This mosaic of foreign investors underlines the universal attraction of the Spanish real estate market and highlights the importance of understanding the cultural and economic dynamics that influence home purchases.

There is a clear pattern in the location preferences of international buyers, focused on regions with high tourist activity such as the Balearic Islands, the Valencian Community, the Canary Islands and Murcia. These data not only reflect the search for a home by foreigners but also an investment in lifestyle, betting on areas recognized for their climate, culture and potential for vacation rentals.

A vision towards the future

While the College of Registrars of Spain is optimistic about the behavior of the sector, it is essential to continue monitoring the evolution of these trends to anticipate changes and adapt to new market dynamics. The role of foreign demand is now a crucial component and likely a barometer of the overall health of the residential market in the years to come.

Opinion of Bruno Rabassa, CEO of BHHS Spain

“Last year, Spain was the most visited country in the world by international tourists, reaching more than 85 million visitors and surpassing France, which had led this position for several years.

It is not surprising that, along with this milestone, there is an increase in foreign transactions in our real estate sector, because our tourism industry and the attractions of our country are of exceptional levels, and that is why they come, right?

If, in addition to the above, we add that our prices and associated costs are very competitive compared to those of their countries of origin, then, white and bottled.

The challenge we face is the shortage of supply and that inevitably leads us to an increase in prices, and with this scenario we will verify the elasticity of demand and if the purchasing trend of foreigners continues to increase.

Although we don't have a crystal ball, we do know that the best day to buy was yesterday."