The number of Spanish homes purchased by foreign buyers declined in the second quarter compared to the same period last year – the second consecutive quarterly decline in what looks like a downward trend starting to take shape.
The number of property sales deeds registered in the Spanish land register by a foreign buyer in the second quarter of this year numbered 16,209, according to the latest report by Spain’s Association of Land Registrars. That compares to 17,338 a year before, a decline of 7%.
Before Q1 foreign demand for Spanish property hadn’t decline in any quarter since foreign demand started to recover back in 2010, four years before local demand began to recover. Now it has declined for two quarters in a row.
By nationality the biggest group of buyers was once again the British, with 2,159 Spanish property acquisitions registered in the quarter (13% of the foreign market), followed by the French some way behind with 1,236 (8%), and the Germans with 1,184 (7%). In terms of market share the ‘rest of the world’ is gaining whilst the biggest markets are on the retreat.
Almost all markets posted a decline in Q2, with the exception of Morocco, Romania, France, and the rest of the world.
However, if there is one bit of good news in the figures it was that demand from the biggest markets all appeared to turn upwards towards positive growth in Q2, with the exception of the UK, where demand growth is negative and pointing down.
When you look at the overall market including local demand, the figures reveal a second consecutive quarterly decline and a clear downward trend, so it’s not just foreigners who seem to be going cold on Spanish property.
As a result of the change in both local and foreign demand, buyers from abroad represented 12.5% of the Spanish property market in Q2.
As I concluded in my article on the Q1 foreign demand for Spanish property figures, “The trend in foreign demand is clearly downwards and looks set to continue that way in the next few quarters at least.” I see no reason yet to change that conclusion based on the Q2 figures. The downward trend is taking shape.