With 2021 well underway, more and more expats want to move abroad and buy property in Spain for a lifestyle change. In 2020, the property market in Spain, especially for international buyers, was paralysed due to the COVID-19 pandemic and the number of deals closed saw a sharp drop before showing some clear signs of recovery in the final quarter of the year, with buyers taking advantage of uncertain property prices. International buyers made up over 10% of the property transactions in Spain in 2020 according to the Spanish National Statistics Institute (INE), a reduction compared to previous years but a promising sign for the future. So, what are the fastest growing places in Spain? And where have property sales increased compared to previous periods?
Which areas of Spain are experiencing growth?
As a direct consequence of the coronavirus pandemic in Spain, the areas of the country that are experiencing the highest growth levels are mainly coastal and countryside regions with people seeking more open space. In terms of growth, inland cities are suffering most, with the exception of Madrid. Figures from a recent Statista report and an INE press note based on population and real estate purchases state that the areas of Spain that grew most in 2020 were Alicante, Malaga, Almería, Guadalajara and Girona, with the Costa Blanca, Costa del Sol and the Costa Brava standing out as popular coastal regions for holiday homes and for those seeking a lifestyle change as a result of the pandemic.
Where have property sales increased in Spain?
The number of home sales and purchases in Spain grew during the last quarter of 2020, with 113,799 sales recorded, up 11.35% on the previous quarter which saw 102,197 sales, including national and international buyers according to the INE real estate registry for the 4th quarter of 2020 released in February 2021. This shows that the residential property market in Spain is already showing signs of recovery, although figures are still below the situation prior to the health crisis.
The most significant increases in Spanish regions were recorded in Galicia (31.00%), Castile and León (19.01%) and Cantabria (16.26%), while the greatest number of sales were recorded in Andalusia, including the popular Costa del Sol (22,770 sales), Catalonia and the Costa Brava (17,513 sales), Valencia (16,404) and the Community of Madrid (15,304).
Where did foreigners buy the most property in Spain in 2020?
According to INE, the Balearic Islands continued to be the area of Spain with the highest percentage of home purchases by foreigners, with an outstanding 32.65% of properties bought by international buyers in the final quarter of 2020. This is also an increase compared to the previous quarter (27.14%). The situation is similar in the Canary Islands with 22.54% of home purchases by foreigners, a slight decrease compared to 26.33% in the previous quarter. In third place, the coastal region of Valencia comes in with 21.68% (24.11% in the 3rd quarter of 2020), closely followed by Murcia with 19.35% which saw an increase of home purchases by foreigners compared to 17.49% in the previous quarter. Brits were the main nationality represented in the final quarter of 2020, followed by French and German expats
Buying in Spain? Key facts about the property market
If you're thinking about buying a home, it’s essential to understand the current state of the property market. Should you wait, or is now the time to buy? To help you decide, we analyse the key indicators: price trends per square metre, interest rates, the Euribor, transaction volume, mortgages, and available financial aid.
Urgent property sales in Spain
Buying property in Spain is a dream for many, but the process can sometimes be lengthy and costly. With the year drawing to a close, there’s no better time to secure your ideal home and potentially benefit from great deals before 2025 ends. Urgent property sales offer a fast, cost-effective way to find exceptional opportunities within days or weeks.
Americans, Portuguese, Moroccans and Ukrainians buying more homes in Spain than ever
The latest data from Spanish notaries on property purchases by foreign buyers has revealed several records. Not only did foreigners pay the highest average price on record for properties during the first half of the year, but as many as seven nationalities also bought more homes than ever before on the Spanish market.
Spanish party Vox proposes higher taxes on foreigners to fund housing aid for Spaniards
Vox, a right-wing political party in Spain, has submitted a proposal to Congress to increase taxes on foreign property buyers. The money raised would be used to fund tax breaks for Spanish citizens and to support the construction of affordable housing.
Spain's most beautiful autumn destination, according to National Geographic
Spain is full of destinations to explore in autumn, when mountains and forests turn golden and nature’s magic feels more vivid than ever. It’s the perfect season to escape the summer crowds and immerse yourself in towns rich in history, culture and sample local fare.
American entrepreneur to revive abandoned Spanish village as tourist destination
Salto de Castro, a village in Zamora that has lain abandoned for more than 30 years, is set for a remarkable comeback thanks to American entrepreneur Jason Lee Beckwith. He has purchased the small border settlement with Portugal for €310,000 and plans to transform it into a tourist hub offering accommodation, dining, and leisure in a natural setting.
