Foreigners buy one in five homes in Spain at record prices

Foreigners are once again purchasing more homes in Spain, and they are doing so at unprecedented prices.

According to data from the General Council of Notaries, foreigners bought 69,412 homes in Spain between January and June, an increase of 1.8% compared to the first half of 2023, accounting for 20.4% of all property transactions. Of these, resident foreigners made up 58.2%, while the remaining 41.8% were purchased by non-residents.

This rise marked the end of two consecutive semesters of decline and was primarily driven by domestic purchases (40,389 transactions, up 4.2% from last year). In contrast, non-residents accounted for 29,023 transactions, a decrease of 1.4% compared to the same period last year.

Furthermore, the notaries' data show that the average price paid by foreigners for property has reached an all-time high. On average, foreigners paid €2,249 per square metre for homes, marking a 7.4% year-on-year increase. This rise is largely driven by a significant surge in the average price of homes purchased by non-residents in Spain during the first half of the year, with prices approaching €2,900 per square metre for the first time.

Specifically, non-residents paid an average of €2,895 per square metre, setting a new record after an 11.4% year-on-year hike, the largest increase since the second half of 2021.

In contrast, foreign residents paid an average of €1,734 per square metre, 3.4% higher than last year but still below the peak of over €1,900 reached in 2008. For comparison, Spanish buyers paid an average of €1,659 per square metre.

The price paid by nationality

In the first half of the year, Swedish (€3,330/m²), American (€3,247/m²), German (€3,114/m²), Norwegian (€2,969/m²) and Swiss (€2,966/m²) buyers paid the highest prices per square metre for the property.

The average price paid by all foreigners (€2,249/m²) was also surpassed by buyers from Russia, Poland, Ireland, France, the Netherlands, Belgium, Italy and the United Kingdom. In contrast, the lowest prices were paid by Moroccans (€738/m²), Romanians (€1,158/m²) and Bulgarians (€1,281/m²).

On the other hand, the largest price increases compared to last year were seen in purchases made by Norwegians (up 14.3%), followed by Germans (14%), Russians (12%), Americans (11.4%) and Irish (11.3%). In contrast, price declines were recorded in purchases made by Colombians (-5.7%), Venezuelans (-1.5%) and Argentinians (-0.6%).

The British remain on top

By nationality, British nationals accounted for 8.4% of the total number of foreign buyers (5,864), followed by Moroccans (7.9%) and Germans (6.8%). The group comprising all other foreign buyers from outside the European Union accounted for 11.2%, thus continuing the upward trend shown in previous semesters.

Transactions by foreigners compared to the first half of 2023 increased in 14 nationalities, with Poles (28.5%), Ukrainians (20.8%), Colombians (19.8%), Americans (12.7%), Irish (12.4%), Chinese (11.7%) and Moroccans (11.3%) leading the way. On the other hand, it fell in nine nationalities, mainly among those from Russia (-24.2%), Norway (-17.0%), France (-15.5%) and Bulgaria (-10.8%). 

The notaries also analysed foreign transactions by nationality and region, noting that the French dominated the share of sales among non-resident foreigners in Aragón, Cantabria, Castilla y León, Catalonia, Extremadura, Galicia and Navarre. Meanwhile, Americans were the main buyers in Castilla-La Mancha, the Basque Country and La Rioja, while Germans led the market in the Balearic and Canary Islands and the British were the primary buyers in Andalusia and Murcia.

Among resident foreigners, Moroccans were the leading buyers, followed by Romanians and Italians, dominating sales and purchases in most autonomous communities. However, in Galicia and Madrid, Portuguese and Chinese nationals accounted for the highest number of transactions, respectively.