Discover why foreigners are investing more in Spanish real estate

Discover the reasons why Swedes, Americans, and other foreigners are investing more in Spanish real estate than locals. Explore the trends now.

Foreign buyers are increasingly investing in real estate in Spain, with data from the General Council of Notaries revealing that non-residents are paying more for homes compared to locals. In the second half of 2023, foreigners paid an average of €2,715 per m2 for properties, marking a 6.1% increase year-on-year and reaching a record figure. This surge in prices has brought the numbers back to 2008 levels, with the average total price paid for homes in Spain standing at €1,712 euros/m2, reflecting a 2.1% increase over the past 12 months.

Buyers from Sweden, the USA, Germany, and Switzerland were among those who paid the highest average prices for properties in Spain. On the other hand, Moroccans, Romanians, and Bulgarians paid the lowest amounts per m2. Despite the rise in prices, the total number of home sales by foreigners in Spain decreased by 10% year-on-year, totaling 63,183 transactions in the second half of 2023.

While overall foreign transactions declined, there were some regions in Spain where the number of purchases by foreigners increased. Asturias, Cantabria, La Rioja, Murcia, and Castilla-La Mancha saw growth in foreign property acquisitions. The Valencian Community led the national ranking in terms of total foreign sales, with 18,919 units sold, representing nearly 30% of the total transactions. Notably, three out of every 10 homes purchased by foreigners in Spain were located in the Valencian Community, particularly in Alicante province.

Experts attribute the region's popularity among foreign buyers to factors such as stable residential demand, affordable prices, high returns for investors, good infrastructure, and the allure of Mediterranean lifestyle. The Valencian Community has also seen more property deals among domestic buyers compared to Madrid and Catalunya.

The real estate market in Spain continues to attract foreign investors, with prices on the rise and certain regions experiencing growth in foreign property purchases. The Valencian Community stands out as a hotspot for both foreign and domestic buyers, offering a mix of affordability, amenities, and Mediterranean charm.