Notaries confirm strong foreign demand in first half with sales growth led by Poland and the USA

The latest housing market numbers published by the Spanish notaries’ association confirm that home sales involving foreign buyers were strong in the first half, led by growth from Poland and the USA.

The Spanish property market continues to thrive, including the foreign segment, as shown by the latest data released by the General Council of Spanish Notaries. In the first half of 2024, property sales involving international buyers rose by 1.8%, to a total of 69,412 transactions. This marks the second-highest number for the first half of the year (H1) on record, trailing only behind the figures from 2022, when pent-up demand from lockdowns boosted sales to an all-time high.

Foreign buyers now represent a significant portion of the Spanish property market, holding a 20.4% share in H1 2024— the second-highest level ever recorded (in H1). Compared to previous years, sales were up 32% above the 10-year average and 34% higher than pre-pandemic levels in 2019, underscoring how demand from international buyers continues to play a pivotal role in Spain’s property market.

Nationalities of Foreign Buyers: The British Still on Top

As in previous years, British buyers once again dominated the foreign buyer rankings, maintaining their position as the largest group purchasing property in Spain. The next biggest nationalities were the Germans and Italians (including many Argentines with Italian passports). Notably, the French, who have traditionally been in third place, dropped to fourth place for the first time ever (behind the British, Germans, and Italians).

Meanwhile, geopolitical developments continue to have an impact on the numbers. The ongoing war in Ukraine is reflected in the sharp rise of Polish and Ukrainian buyers, the two nationalities showing the largest growth. Russian buyers, however, experienced the most significant decline. Interestingly, the USA ranked third in terms of growth, highlighting an increasing interest from American buyers in the Spanish market.

Regional Hotspots: Madrid on the Rise, Canaries in Decline

When it comes to where foreign buyers are investing, there have been some notable regional trends. Sales saw the biggest increase in Madrid, signalling the capital’s growing appeal to international investors. Conversely, the Canary Islands saw the most significant decline, reflecting shifting preferences for foreign buyers this year.

The Valencian region remained the most popular destination, capturing 35% of the market share within the foreign buyer category (in regions of most interest to investors from abroad). Andalusia was the next most popular, accounting for 21% of all sales to international buyers.

Strong Demand from Spanish Buyers

While foreign buyers are a key force in the market, domestic demand also performed strongly in the first half of the year. Spanish buyers saw an 8% increase in property purchases, outpacing foreign buyers for the first time in five years. This is a positive shift, suggesting a revival in local demand, possibly influenced by a more favorable economic climate and rising confidence among Spanish citizens.

Conclusion: Sustained Interest from International Buyers

Overall, the Spanish property market continues to enjoy robust demand from international buyers, even as geopolitical shifts alter the nationality makeup. The pandemic appears to have triggered a lasting surge in demand from foreign investors, particularly in certain regions, with some nationalities showing strong growth despite global uncertainties. As Spain continues to offer attractive opportunities for property investment, both foreign and domestic buyers are contributing to the continued dynamism of the market.