Surge in foreigners buying in Spain

foreign demand for Spanish property

Annual growth in foreign sales (left), change in foreign budgets (right)

Non-resident buyers were primarily responsible for the growth in foreign demand for Spanish property last year.

Property purchases by non-Spaniards rose 9.8pc in 2013 compared to the previous year, according to the latest data from the Statistics Department of the General Council of Notaries.

Purchases by non-residents buying second homes and investments rose by 22.6pc, making this group the real drivers of the growth in demand. Purchases by foreign residents fell slightly (see chart above, left).

Foreigner buyers, both resident and nonresident, now represent 21.4pc of the market, the highest level on record.

Sales to foreigners grew 17pc in the Valencian Region, 16pc in the Canaries and Andalucia, and 15pc in Murcia. Foreign purchases plunged -33pc in Galicia, -29pc in Castile & Leon, and -24pc in Navarre.

foreign demand for Spanish property

British buyers were still the biggest group, but as a percentage of the foreign market they shrank again last year, down to 15pc (compared to 34pc in 2007). On the rise were the French (11pc), Russians (8pc), Germans (8pc), and Belgians (7pc).

Foreigners bought more last year, but they spent less, with the average purchase price in falling 4pc to 1,486 €/m2.

The data is based on sales witnessed by notaries in 2013.

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About Mark Stücklin

Mark Stücklin is a Barcelona-based property market analyst and consultant, and author of the 'Spanish Property Doctor' column in the Sunday Times (2005 - 2008). He can be reached by email on ms@spanishpropertyinsight.com.