Foreign-buyer boom continues in first half

The Spanish property market saw near-record levels of foreign buyer activity in the first half of 2024, according to the latest data released by the Housing Ministry.

During this period, the number of property transactions involving foreign buyers rose by 1.2% year-on-year, reaching a total of 64,735 sales, as recorded by Spanish notaries. This marks the second-highest figure on record, only surpassed by the post-pandemic boom in 2022, when pent-up demand after lockdowns led to the highest level of sales in over 15 years.

Growth in foreign demand was primarily driven by expatriates already living in Spain, with property purchases in this segment up by 2.8%. In contrast, there was a slight decline of 0.7% in purchases made by non-residents, typically buying second homes or investment properties.

Foreign demand growth accelerated in the second quarter (Q2), rising by 5.3%. Both expatriates and foreign non-residents (FNR) showed increased interest in Q2, with purchases by expats up by 6.4% and by non-residents up by 2.8%. This suggests a strengthening of foreign demand as the year progresses.

Overall, total property sales to both local and foreign buyers rose by 6.5% in the first half of 2024, driven by a notable 8% increase in domestic purchases. This highlights the solid foundations of the Spanish property market this year. However, as local demand grew at a faster pace, the market share of foreign buyers slipped slightly to 19%, down from 20% during the same period in 2023.