The Russian market for homes in Spain
Data and analysis of the Russian market for Spanish property in periodic reports highlighting key trends of interest to anyone looking to buy or sell property in areas of Spain where home buyers from Russia are active in the local real estate market.
This report page provides half-year and annual reports on the Russian market for property in Spain. Here, you’ll find comprehensive insights into how Russian buyers participate in the Spanish real estate market, supported by detailed data and analysis. Whether you’re a property professional, investor, or simply curious about international trends in Spanish real estate, these reports will equip you with essential knowledge.
Our reports explore key aspects of the Russian market’s activity in Spain, offering answers to critical questions such as:
- How many Spanish property sales involve buyers from Russia?
- What is the year-on-year change in the volume of purchases by Russian buyers?
- How do Russian buyers break down by residency type (expats living in Spain vs. non-residents)?
- How much do Russian buyers typically spend on Spanish properties?
- How does the Russian market compare to other significant foreign property markets in Spain?
As a mid-sized player in the broader landscape of foreign interest in Spanish property, Russia’s influence provides valuable insights into the dynamics of the international property market. These reports are especially relevant for those dealing with Russian buyers or sellers, or anyone seeking to understand the Spanish property market’s global appeal.
Stay tuned for periodic updates packed with data-driven analysis and trends to guide your understanding of this important segment of the Spanish real estate market.
2024 H1
Russian buyers in the Spanish property market: H1 2024 snapshot
Russian buyers have long been a key segment of the Spanish real estate market, though their activity has fluctuated over the years due to economic and political factors. This snapshot provides an overview of their involvement during the first half of 2024, focusing on key trends and developments.
Total sales and trends
During H1 2024, property sales involving Russian buyers reached 1,556 transactions, reflecting a year-on-year decline of 24.2% compared to the same period in 2023 (Fig. 1). Despite this significant drop, the total sales figure exceeded the ten-year average by 0.39%, indicating resilience amidst broader challenges.
Buyer residency status
A breakdown of buyer residency status (Fig. 2) reveals that:
- 414 transactions were made by non-resident Russians, representing purchases of second homes or investment properties.
- 1,142 transactions involved expats—Russians living in Spain, purchasing primary residences or additional properties.
The year-on-year change was more pronounced for non-residents, with a decline of 38.5%, compared to a 17.3% reduction among expats. These figures diverged from their respective ten-year averages, with non-resident purchases falling below the historical norm by 31.6%, while expat purchases were 39% above average.
Ten-year sales index
To illustrate long-term trends, a ten-year sales index (Fig. 3) is used, where the baseline value of 100 represents the starting point. By H1 2024:
- The overall sales index rose slightly to 105.85, showing modest growth in total Russian buyer activity over the decade.
- The expat sales index surged to 180.41, indicating significant growth in purchases by Russians living in Spain.
- The non-resident sales index dropped sharply to 49.46, reflecting a marked decline in activity from this group.
For readers unfamiliar with indices, they provide a way to track relative changes over time, with the starting value of 100 serving as a reference point. A value above 100 indicates growth, while a value below 100 signifies a decrease.
Foreign market share
The foreign market share (FMS) of Russian buyers was 1.12% in H1 2024, down from 1.50% during the same period in 2023 (Fig. 4). This decline highlights a diminishing role for Russians in the overall foreign buyer segment of the Spanish property market.
Spending trends
In terms of expenditure, Russian buyers spent an average of €2,576 per square metre, a modest year-on-year increase of 0.12%. While this suggests stable spending power among Russian buyers, broader economic and geopolitical factors continue to influence their ability to invest.
Comparative performance
To provide a broader context, three additional charts will be presented, comparing the Russian market’s performance to other foreign buyer markets. These charts will highlight:
- Total sales by country to show the size of different foreign markets.
- Year-on-year changes to identify which markets are growing or shrinking the most.
- Market share by nationality to illustrate the importance of various foreign markets within Spain.
Factors influencing Russian demand
The following factors shaped the demand for Spanish property among Russian buyers during H1 2024:
- Economic sanctions and financial restrictions: Ongoing sanctions have limited Russian buyers’ ability to transfer funds internationally, affecting their capacity to purchase property in Spain.
- Exchange rate fluctuations: The weakening of the Russian rouble against the euro has reduced purchasing power, making Spanish properties more expensive in rouble terms.
- Political and economic uncertainty: Domestic instability in Russia has deterred buyers seeking stability, though some investors still look to diversify assets abroad.
- Residency programmes: The Spanish Golden Visa remains attractive but has limited appeal due to sanctions and capital controls.
- Capital controls and emigration: Restrictions on transferring money out of Russia and rising emigration among wealthier individuals have influenced demand, though translating intent into purchases remains a challenge.
- Local real estate dynamics: Price increases in areas popular with Russian buyers, such as Marbella, have created barriers for middle-class purchasers.
