Prices soar and foreign buyers’ spending power levels out by 2024

PROPERTY purchase deals in Spain by foreigners flattened out last year to €11.7 billion of sales- up by just 0.4% in value compared to 2023.

That compares to over €14.5 million in sales recorded in 2018.

The Ministry of Housing compiled figures that showed the majority of non-Spanish buyers were buying second hand housing.

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The number of foreign buyers was 19.1% in the 122.118 transactions last year, down 988 from the total for 2023 as the prices continue to rise due to the demand exceeding supply.

Buyers from the United Kingdom accounted for 8.6% of all foreign purchases, followed closely by buyers from Germany (6.7%), Morocco (5.7%) and France (5.4%).

Belgium, with 32.4% of its citizens purchasing new homes, was followed by Poland (29.8%), Netherlands (30.8%) and Sweden (23.8%).

Eighty-seven percent of the deals made by French citizens on the second hand market were for these properties.

Morocco is next (85.9%), followed by Romania (85%), Argentina (85%), Ireland (83.9%) and Italy (83.5%).

Most foreigners buy homes in the Balearic Islands, Canary Islands and Valencian Community. Alicante dominates the Valencian Community.

The Golden Visa program ended its last 12-month period in April of the year.

It allowed foreigners to buy a property in Spain and gain residency by spending at least €500,000 on a home.

Purchases of over €500,000 accounted for just over 10% of foreign transactions of which 47.5% were from outside the European Union.

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