Properties in Spain – both modern luxury villas and stylish flats – are an interesting investment option for foreign investors, whose share of transactions in the Spanish market is increasing. From our perspective, the growing interest from Poles is very good news!
Huge interest in property on the coast
In 2021 and the first months of 2022, domestic demand for real estate grew with greater intensity than international demand, which is seeing moderate and sustained growth, not yet reaching the results of 2019. According to data from MITMA (Spanish Ministry of Transport, Mobility and Urban Agenda), the attention of foreigners is mainly focused on the coasts, where 8 out of 10 of them buy property.
Of the total 673,610 property sales in Spain in 2021, 15% were purchases by foreign investors. Of these, 83% were concentrated on the coast.
The number of foreign buyers is increasing
Sales and purchases of homes in Spain by foreigners – both residents and non-residents – increased by as much as 171% in the first quarter of 2022 to reach 31,711 transactions, compared to 18,521 registered in the same period of 2021. Transactions by resident foreigners reached 16,691 – 35.9% more than in January-March 2021, while sales and purchases of homes by non-resident foreigners increased by 140.6% to reach 15,020 transactions, more than 6,000 better year-on-year.
The leading role of international buyers on the coast draws particular attention in the case of the two archipelagos and the Mediterranean coast, where 33% and 22% of transactions are carried out by foreign buyers respectively. When analysing the results of transactions carried out by foreigners in individual provinces, the highest volume of property sales on the coast was achieved in Alicante (Valencian Community), followed by Malaga (Andalusia).
Who is most likely to buy?
According to data presented by the Registradores de España, the nations most likely to buy property in Spain in 2021 were the British, Germans and the French. There has also been growing interest from Swedish nationals for several years, who regularly increase their share of the number of transactions carried out by foreigners in Spain.
It is also worth noting the increased interest from Polish investors, who in 2021 were ranked 12th in the list of the nations most likely to buy property in Spain, with a share of 1.9% of all registered transactions by foreigners.
Much better results came in the first two quarters of 2022, in which Poles once again found themselves in the TOP10 nations buying property in Spain, with a share of 2.4 per cent (Q1) and 3.14 per cent (Q2), respectively. Thus, Poles overtook representatives of countries such as Switzerland, Norway, Denmark and Ireland.
