Foreign demand for housing continues to play a prominent role in the Spanish housing market. Recent figures (source) have revealed that foreigners continue to account for a remarkably large share of Spain's total housing sales in the second quarter of 2023, at 15.44%. This percentage represents the second highest level ever, after Q3 2022, when foreigners dominated 15.92% of the market. Compared to Q2 in 2023, this is another increase (14.94% in Q2).
When looking at breakdown by nationalities, we see that 8 countries have a substantial share in the growth; British (10.11%), Germans (7.01%), French (6.72%), Belgians (5.35%), Moroccans (5.32), Italians (5.13%), Dutch (4.80%) and Romanians (4.78%). In absolute terms, over 10,000 homes were sold to these 8 nationalities in quarter 3; British (2,137), Germans (1,482), French (1,420), Belgians (1,131), Moroccans (1,124), Italians (1,084), Dutch (1,015) and Romanians (1,011).
The same data shows that the autonomous communities most in demand by these largest groups of foreigners include the Balearic Islands, Valencia, Canary Islands, Murcia, Catalonia and Andalusia. The provinces with the highest number of home purchases by foreigners were Alicante (43.76%), Santa Cruz de Tenerife (36.58%), Málaga (35.33%), Illes Balears (31.69%), Girona (30.85%), Murcia (24.83%) and Las Palmas (20.85%).
It is also interesting to see the increase or decrease by nationality at the quarterly level. For instance, the biggest increase in home purchases can be seen among the British, namely 1.31%-. In Belgium, the Spanish housing market is becoming increasingly interesting and attractive. Here too, there is an increase of 0.2%- in quarter 3 compared to quarter 2. In addition, France, the Netherlands, Ireland, America and Argentina also show an increase. The remaining countries show a decrease compared to the previous quarter.
As the results of quarter 3 of 2023, that are recently published, show increase in the buying of property in Spain by foreigners, it is expected that in quarter 4 this increase will be continued. Buying property in Spain will remain attractive for foreigners as there can be many social-cultural but also financial benefits.
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