The number of second-home transactions in Spain decreased by 4% in the second quarter compared to the same period in 2023, totalling 146,273 transactions, according to the Association of Registrars. This decline is mirrored by a drop in foreign buyers, particularly among the British, who have historically been the most interested in purchasing properties along Spain's coasts. The share of British buyers in the Spanish housing market has plummeted from 38% of all foreign purchases in 2008 to just 8.37% in the second quarter of 2024. Sonneil Research attributes this decline to the financial crisis of 2008 and the impact of Brexit.
A recent report from the technology marketing firm reveals that 14.8% of second home transactions in Spain during Q2 involved international investors, with British buyers representing 8.4% of all foreign purchasers. They were followed by Germans at 7% and French buyers at 5.2%.
Second home type and location
In 2008, 65.7% of British transactions involved new builds, but this figure plummeted to 13.1% in 2023. Sonneil Research attributes this decline to the devaluation of the pound against the euro following Brexit.
Aside from Madrid and Barcelona, the preferred destinations for international investors are the Canary Islands (62.8%), the Alicante coast (43.5%), the Balearic Islands (33.4%), and Malaga (30.1%).
“One of the main differences between the pre-crisis second home market and today is that the British market has not returned to play a fundamental role. Currently, the British presence in the new build and second home market is marginal, whereas it was once the primary driving force, multiplying the figures of the next buyer market by six,” says Alfredo Millá, CEO of Sonneil.