Lucas Fox Spanish Real Estate Market Report / First half 2023
FOREIGN BUYERS
Foreign demand has been the most dynamic segment of the Spanish property market in the wake of the Coronavirus, which appears to have stimulated the interest of buyers from abroad. Spain has attracted new buyers from around the world with its healthy climate and admired quality-of-life as many people reevaluated their priorities in the light of the pandemic. Unsurprisingly, there was a dramatic slump in the number of foreign buyers at the start of the pandemic, and foreign demand took longer to recover than local demand
due to international travel restrictions in place for most of 2021. In 2022, however, foreign demand took off and hit a record high of 26,728 sales in Q3 last year. 2022 was also the best year ever, with 95,000 homes bought by non-Spaniards. This year has started with a first-half record of 46,000 transactions involving a foreign buyer, up by almost 1% on last year, whilst local demand fell by 5.5%. Since 2019 foreign demand has increased by 42% compared to a 15% increase in local demand. As a result, the market share of
foreign buyers reached 14.7% of the overall Spanish market in the first half, not far off the all-time high of 15.3% in the second half of last year. Although the latest figures from the Land Registrars’ association suggest that foreign demand is cooling down after last year’s blistering growth there is no sign yet that foreign investors are losing their appetite for homes in Spain to any significant degree. 2023 could be another impressive year in terms of foreign buyers if growth in the first half is maintained for the rest of the year.
FOREIGN SALES AND FOREIGN MARKET SHARE (FMS) Source: Registrars
30,000
20%
FMS %
15%
20,000
10%
10,000
5%
0
0% Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023
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