The growing number of expats arriving in Spain not only boosts the tourism sector, but also benefits the property market.
61,000 homes, mostly in the islands and coastal provinces, were purchased by foreigners in 2017 alone. From data obtained by the Spanish Registry, of the properties that were sold last year, 13.11% were acquired by expats predominantly from Britain, France, and Germany.
In terms of pure numbers, foreign property purchases were reaching record breaking figures with more than 61,000 deals closed last year, accounting for just more than 13% of the total number of property transactions. Despite being lower than the percentage for 2016 when it reached 13.25%, the number of transactions was higher compared to the 54,000 registered for that year.
The Property Statistics Registry affirmed the fact that not only did foreign demand constitute a significant recovery in the Spanish property market as one of the main focuses of demand during the country’s property and financial crisis, but also during the middle of the recovery when prices and transactions were seen to be rising due to the actively growing foreign demand for property.
Among the expats who decide to purchase property in Spain, the British are still in the lead making up 15.01% of the total property transactions by foreign citizens, followed by the French with 8.64%, Germans with 7.77%, Belgians with 6.39%, and Swedes with 6.38%.
The foreign buyer profile is closely linked to the purchase of properties in Spain for tourists reasons. This fact is not only evident by the leading nationalities active in the property market, but also by the geographical composition with most of the demand focused on the coastal areas.
Where Expats Buy Houses (4th Quarter Data)
The things that expats find most attractive about Spain is clearly its sunny skies and beaches. Therefore, it's not surprising that the coastal provinces, particularly the Mediterranean and the islands, have once again come out on top with the highest number of property transactions involving foreigners.
According to data from the 4th Quarter of 2017, (without having detailed figures for that year), the largest percentage of total operations, up to 30% in about 5 Spanish provinces, were made up of foreigners. In addition, in 14 regions, double digits were reached in the importance of sales closed for that year by other nationalities. Homes in regions that attracted interest by foreigners included: Alicante with 42.47%, Tenerife with 38.75%, Balearic Island with 35.40%, Girona with 32.59%, and Malaga with 31.83 %.
An agent we spoke to recently confirmed that Tenerife property sales reflects all of the above figures and there is a marked increase in property interest from foreign buyrers on the island.