Interest of Foreigners in Spanish Real Estate

In the dynamic Spanish real estate landscape, the interest from foreigners remains high. Figures from the first half of 2023 show that as much as 20% of all properties sold in Spain were acquired by non-Spaniards, a notable trend reflecting the diversity of international buyers.

During the third quarter, foreigners acquired a total of 21,580 homes, with British buyers leading at 10%. Belgians rank fourth with 5.4%, followed by the Dutch at 4.8%. In absolute numbers, 1,131 Belgians and 1,015 Dutch nationals acquired property in Spain during the same period.

According to official data from Registradores de España, in the first three quarters of 2023, a total of 3,483 Belgians made their move into the Spanish real estate market, an interesting development reflecting the country's international appeal.

Most transactions by foreign buyers are concentrated in popular regions such as the Balearic Islands, Costa Blanca, Canary Islands, and Costa del Sol. Carl Vorsselmans plays an active role in these regions with his company Nieuwbouw in Spanje (nb-estates).

Despite sustained international interest, there is a notable national decline of 23.7% in overall real estate sales in Spain, the largest drop since 2020, according to Carl Vorsselmans. The Canary Islands are hardest hit, with a 40% decline compared to the same period in 2022, as reported by the National Institute of Statistics.

Freyke Van Looveren from Nieuwbouw Tenerife, the leading player in the Dutch-speaking market in Tenerife, points to rising interest rates as a significant factor influencing the decline in transactions. He also emphasizes the importance of distinguishing buyer profiles, noting that buyers of second homes appear less sensitive to interest rate increases compared to local buyers, for whom the purchase often represents their first and only residence. This nuance in buying behavior underscores the complexity of the current real estate market in Spain.

Source: Bouwenwonen.net