The proportion of Spanish property sales involving a foreign buyer has hit a new high of 13.1% market share in the third quarter of 2014, reveal the latest figures from the Property Registrars (registradores.org).
The number of Spanish properties bought by foreign buyers, and inscribed in the property register, increased by an annualised 19% to 10,430 in the third quarter.
Year to date, foreign buyers snapped up 30,708 properties, up 23% on the same period last year. Over the same period locals bought 210,339 homes in Spain, down 1% on the same period last year, but up 5% in Q2, and 9% in Q3.
The British led the pack buying 1,886 Spanish properties in Q3, up 37% on the same time last year. They were followed by the French, Russians, and Germans, as illustrated by the chart above.
In terms of foreign market share, the British represented 18% of total purchases by foreigners, and 20% of key markets. France was next with 12%, Russia with 8%, and Germany with 7%.
British demand was the most dynamic in Q3 and throughout the course of this year, whilst Russian demand has been waning thanks to the weak Ruble and growing economic crisis in Russia, as is clear from the following charts.
We can expect the Russian economy to deteriorate further over the next 12 months. Will this hobble demand by reducing Russian purchasing power, or increase demand as more Russians try to get their money out? Probably the former, but we shall have to wait and see.
In the boom years foreign buyers, led by the British, accounted for between 8% and 9% of the market. That fell to a low of 4.24% in 2009, at the nadir of the financial crisis. Since then foreign demand has increased in market share whilst local demand continues to shrink.