The Spanish property market has experienced almost revolutionary changes in recent quarters. From historically record-breaking performance last year, to stabilisation at a high level – despite a lower number of transactions. Andalusia has played a key role in building the stability of the Spanish property market.
Andalusia the leader in Spanish real estate
Q3 2023. Andalusia recorded the highest number of property sales and purchase transactions in Spain – 28,164 to be exact. This is an impressive result, especially considering the 7.8% decrease in the number of transactions nationwide during the same period. Andalusia consistently maintains its leading position in the Spanish property market, in which it currently holds a 20.33% share. In addition to Andalusia, among the leading autonomies with the best results were:
- Community of Valencia (23,650),
- Catalonia (21 613),
- Community of Madrid (16 437).
Their market shares in relation to Spain as a whole were 16.41%, 15.80% and 12.21% respectively. Together, these four autonomies with the highest number of transactions all have almost 65% of the market share of property sales transactions in Spain.
Andalusian provinces at the forefront
The province of Málaga is particularly outstanding in Andalusia. With 8,210 transactions in Q3 2023, Malaga not only maintains a strong position in the market (the 5th most popular province in the country), but is also attracting the attention of national and foreign investors. This region, known for its picturesque landscapes and tourist appeal, is increasingly attracting those looking for both investment opportunities and a place for a second home.
The provinces that recorded the highest number of property sales transactions in Q3 2023 are as follows:
- Madrid (16 437),
- Barcelona (13 519),
- Alicante (11 990),
- Valencia (8,770),
- Malaga (8,210),
- Murcia (5,414),
- Seville (4,847).
Andalusia and its provinces of Malaga and Seville are prime examples of the dynamism in the Spanish property market. Their significant shares in the number of transactions, contrary to the general trend of the market, testify to their exceptional potential. In the coming quarters, these regions are expected to continue their important position in the market – representing an interesting proposition for investors and property seekers in Spain.
Foreign investors prefer the Spanish coast
In the Spanish property market, there has been a continued high interest from foreigners (including Poles), especially in regions such as Andalusia and its province of Málaga. From the perspective of the autonomous communities, the last quarter showed a percentage increase in foreigners’ participation in the property market. Of all Spanish communities, ten recorded increases, compared to seven with decreases. Among the communities with the highest share of purchases by foreigners, the following stand out:
- Balearic Islands with 31.69%,
- Community of Valencia with 29.45%,
- Canary Islands with 28.17%,
- Region of Murcia with 24.83%,
- Catalonia with 16.36%,
- Andalusia with 15.98%.
At the provincial level, we also see a preponderance of increases in the share of purchases by foreigners. Thirty provinces recorded increases, while nineteen experienced decreases. The provinces with the highest share of property purchases by foreigners are:
- Alicante with 43.76%,
- Santa Cruz de Tenerife with 36.58%,
- Malaga with 35.33%,
- Balearic Islands with 31.69%,
- Girona with 30.85%,
- Murcia with 24.83%,
- Las Palmas with 20.85%.
The phenomenon of increasing foreign interest in property in Spain, particularly in Andalusia and Malaga, is an important indicator for the market. This trend not only underlines the attractiveness of Spain as an investment destination, but also indicates the potential for further market development in these regions. The property market in Spain is undergoing a period of transition. Despite the decline in the overall number of transactions, the situation remains dynamic, especially among foreign investors.
