How are foreigners transforming the housing market in our country?

This is nothing new: in recent years Spain has experienced significant growth in the acquisition of housing by foreigners buyers. In fact, data from the National Statistics Institute (INE) reveal that they accounted for 21.4% of total real estate transactions from January to June 2023.

But… what motivates foreigners to buy homes in our country, what are their preferences in terms of type and location? We analyze it below.

What factors attract international buyers to the Spanish market?

• Investment security: buying property in Spain is considered a reliable and profitable business due to the strength of the national real estate sector.

• Legal processes and tax advantages: the procedures for the purchase of real estate by foreigners are fairly straightforward and the associated taxes are competitive in the European context.

• Climate and quality of life: the warm atmosphere and quiet life in our country are especially attractive for retirees and those looking for a second home.

• Variety of options: Spain offers a wide selection of available properties, from coastal apartments to homes in rural areas, suitable for different preferences and budgets.

What types of properties do they choose and for what reasons?

International buyers show a wide range of tastes, although they generally opt for:

• Second homes: vacation homes are a recurring choice, mainly in areas with a favorable climate and developed tourist infrastructure.

• High-end properties: a considerable number of foreigners opt for luxury properties, particularly in exclusive coastal areas and in renowned urban districts.

• Rental investments: there are those who acquire properties in Spain in order to rent them out and capitalize on the internal tourist interest in the country.

What are the areas of Spain preferred by foreigners?

There is a wide spectrum of preferences in terms of location, among them:

• Coasts and beaches: particularly the Mediterranean and the Balearic Islands intensely attract foreign investors for their enviable climate, paradisiacal beaches and a leisurely and pleasant life.

• Large cities: cities such as Barcelona and Madrid capture the attention of numerous international buyers thanks to their urban dynamism, commercial opportunities and commercial wealth.

• Rural and inland environments: those seeking serenity and connection with nature in our country find rural areas and small inland towns a great attraction.

How are they transforming the housing market in our country?

In recent years, the real estate sector in Spain has undergone significant transformations due to economic, political and social influxes. These changes have had an impact on real estate acquisition practices by foreigners in the following way:

• Growth in the purchase: after the pandemic, an increase in the acquisition of homes by foreigners has been noted, even reaching historic levels.

• Variety in the origin of investors: previously most buyers came from European nations, now there is a growing presence from other areas including the Nordic countries and Latin America.

• Evolution in preferences: there has been a shift towards interest in high-end properties and locations less frequented by tourists in search of a more serene experience.

Undoubtedly, this is good news for the real estate market in our country, which is expected to remain favorable. And a good opportunity also for those owners who wish to sell their properties in the short-medium term.

Are you one of them? In KM2 Real Estate Services we want to help you. We are specialists in the marketing of properties in the best areas of Barcelona and Madrid.

We also invite you to discover the selling price of your property for free and in less than two minutes with our online home valuator.

We are ready to fulfill your next real estate purpose. Do not hesitate to contact our real estate agencies for more information.