Friday, November 24, 2023

NB-ESTATES IN BOUW EN WONEN: In Spain, 1 in 5 homes are sold to foreigners

In the dynamic Spanish real estate landscape, interest from foreigners remains undiminished. Figures from the first half of 2023 show that as much as 20% of all homes sold in Spain were owned by non-Spaniards. A striking trend that reflects the diversity of international buyers.

During the third quarter, foreigners acquired a total of 21,580 homes, with Britons leading the way with 10%. In fourth place we find Belgians with 5.4%, followed by the Dutch with 4.8%. In absolute numbers, 1,131 Belgians and 1,015 Dutch acquired a piece of Spanish property during the same period.

According to official data from Registradores de España, a total of 3,483 Belgians took the plunge into the Spanish property market in the first three quarters of 2023. An interesting development that reflects the country's international appeal.

Most transactions by foreign buyers take place in popular regions such as the Balearic Islands, Costa Blanca, Canary Islands and Costa del Sol. In these regions, Carl Vorsselmans plays an active role with his company New Construction in Spain (nb-estates).

However, despite continued international interest, there has been a notable national decline of 23.7% in overall property sales in Spain, the biggest drop since 2020, Carl Vorsselmans said. The Canary Islands are the hardest hit, with a 40% drop compared to the same period in 2022, according to the National Institute of Statistics.

Freyke Van Looveren of Nieuwbouw Tenerife, the largest player in the Dutch-speaking market in Tenerife, points to rising interest rates as a major factor influencing the drop in transactions. He also stresses the importance of differentiating the profile of the buyer, with second residence buyers appearing less sensitive to interest rate increases than local buyers, for whom the purchase is often the first and only home. This nuance in buying behaviour underlines the complexity of the current property market in Spain.