The competitive prices of housing in Spain compared to the rest of Europe are producing a return of interest from foreign investors in the national market, after the significant drop in sales by foreigners since the outbreak of the pandemic, according to the International Federation of Real Estate Professionals (FIABCI). The FIABCI believe that these investments are generally being made with a view to spending long periods of time to establish their second homes in Spain, especially in Madrid, Barcelona and the Balearic Islands.
International investment has always seen the Spanish residential market as having high potential and attractiveness. This is demonstrated by the figures for sales and purchases by foreigners in recent years, which remain above 10% of all transactions on average.
However, the outbreak of the pandemic, with its confinement measures and restrictions on international mobility, hit international investment hard. This was compounded by the uncertainty surrounding the health and economic situation in Spain, which led to a drop in property sales by foreign investors of around 20%.
Now, with the gradual process of returning to normality and the opening of borders, the international profile is once again becoming interested in the residential offer in Spain, according to experts.
Anna Puigdevall, director of FIABCI, assures that "Spanish property prices are very competitive compared to those in the rest of Europe and this is causing foreigners to see an investment opportunity in our country".
As for the type of property they are looking for, Puigdevall adds that "the flexibility that is being established around the modalities of remote work is causing foreigners to make an investment thinking about spending long periods of time, with the intention of establishing their second residence in Spain".
Among the main investment locations, the interest in properties located in large capitals such as Madrid or Barcelona stands out, where the cultural and leisure offer, as well as professional opportunities are a decisive factor when choosing a destination for investment. International investors also show a growing interest in the Mediterranean area, especially in properties located in the Balearic Islands.
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