Spain has long been a popular destination for foreign retirees and investors to buy their own home in the sun. It has particularly attracted investors from the UK, and Britons are still buying the most homes in Spain. But the record for the highest prices being paid now lies with investors from other nations. Here’s everything you need to know about how much foreigners are investing on property in Spain, and what that might mean for you:
How Much Are Foreign Investors Paying for Property?
The average property price per metre squared in Spain is now €2,062 according to the most recent figures which looked at property sales from the first half of 2022. When compared to the second half of 2021, this is a 10.6% year-on-year increase. What’s more, this amount per metre squared is even larger than the previous record high, which was reached during the Spanish real estate boom of 2007.
This huge growth in property value is largely attributed to the investments of non-resident foreign second homeowners. This group is, in fact, paying larger than this already inflated average price, with each foreign investor spending an average of €2,522/m2. by contract, those resident foreigner in Spain are only paying an average of €1,622/m2. Whilst foreign residents are clearly paying less for property than foreign non-residents, this figure still represents an increase of 8.2% for this group compared to the first half of 2021.
How Much Are Spanish Investors Paying for Property?
Spanish investors are paying much less for property, on average than both resident foreign investors and non-resident foreign investors. This group are paying an average of €1,560/m2 and this figure represents an increase of 5.2 percent year-on-year.
Who is Paying the Most for Property in Spain?
The foreign nationals who are paying the most for their property in Spain are Danish buyers. Research has shown that the average Danish buying is paying €2,870 per m2 for their property.
In second place on this league table are American buyers who are paying 2,837per m2. In third and fourth place equally, you will find Norwegian and Swedish buyers who are paying €2,701 per m2 for their property in Spain. With an average expenditure of €2,657, buyers from Germany take fifth place in this top ten list, whilst buyers from the Netherlands, France, Belgium, Italy and Ireland are all included on the list of foreign buyers who are prepared to pay above average asking prices to get their hands on the Spanish property of their dreams.
How Much Are Britons Paying for Property in Spain?
Brexit hasn’t hampered British interest in living in Spain. Despite being the group of foreign investors who buy the most properties in Spain, Britons did not make the top ten list of foreign investors overpaying for their Spanish property. 10.7 percent of the total number of properties purchased by foreigners in Spain were sold to Brits, and those Britons spent an average of €2,003/m2 on acquiring their Spanish homes.
Who is Buying Property in Spain?
We have already mentioned that Britons are the foreign group buying the most properties in Spain. They are closely followed by German nationals, who are responsible for 10.2% of foreign property purchases in the country. In third place with 7.7% of purchases you will find France. In fact, the purchases made by foreigners of all nationalities increased during the first quarter of 2022, but those made by the Dutch (121.5 percent), Norwegians (119.5 percent) and the Irish (106 percent) increased the most.
Foreigners bought 72,987 homes in Spain in the first half of the year, which represented 20.3 percent of the total number of properties bought in the country. This huge figure demonstrates just how important continued foreign investment is to the Spanish economy.
Any Unexpected Buyers During this Period?
It is interesting to assess the impact that the war in Ukraine has had on property purchases during this period, particularly with buyers from the two main players of Russia and the Ukraine. The number of Ukrainian citizens who bought property in Spain during the first half of 2022 soared by more than 73 percent to 1,237 sales. This is the highest figure recorded since 2007. Similar increases in sales were also seen from Russian nationals. Property purchases by Russians increased by 27.5 percent to a total of 1,418.
Which Region Saw the Biggest Price Increase?
Finally, we will look at property prices by region: each region has seen both an increase in the number of foreign nationals and an increase in the prices those nationals are paying. The five regions that have seen the biggest growth percentages are:
- Extremadura, with a 34.3% growth rate
- Asturias with a 27.5% growth rate
- Murcia with a 19% growth rate
- Madrid with a 16.6% growth rate
- Aragon with a 16.1% growth rate
Are you thinking of moving to Spain? Or looking for a holiday home that you can let when you’re not using it? Then why not get in touch with our locally based property experts, who are perfectly placed to help make you dream of Spanish home ownership a reality. We’re already excited to work with you!