If you’re eager to step onto the Spanish property ladder, we’ve explored the latest trends, including the nationalities showing the most interest and the top areas to consider.
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The 90-day rule hasn’t perturbed British buyers
Brits remain the largest group of overseas buyers in Spain.
Brexit has meant that British people are only able to stay within the Schengen Area for 90 days out of every 180. While this has put some buyers off pursuing their dream of owning a home in Spain, for many, the allure of sunshine, sand and siestas was over-powering. For, even with the 90-day rule in place, Brits are still the largest group of overseas buyers in Spain. Even if they’ve got to hop on a plane on the 89th day, owning a home in Spain is still worth it!
If less than 90-day stays suits you because you’re after a holiday home, download our How to Buy a Holiday Home in Spain.
Spain offer a golden visa, a residency-by-investment scheme, with the most popular option being a property purchase of €500,000 or more. This enables you to stay in the Schengen Area for longer than 90 days. Head here for more information.
How Spanish property is turning the heads of German buyers
According to Idealista, in 2023, British buyers accounted for 15.5% of mortgage applications. Germany was not far behind with 14.1% mortgage applications. In the third quarter of the year, German buyers even eclipsed Brits in the number of mortgage applications. This indicates that Britain could be toppled from the top spot as 2024 unfolds.
Get in touch with a trusted solicitor today – they’ll help you avoid any of the legal pitfalls of buying abroad.
While Brits and Germans have a long history of vying for property in Spain, there are a number of new nationalities showing an interest. Swiss buyers accounted for 9% of applicants; Americans were just behind them at 8.9% and the French came in at 7.8%. Also worthy of mentioning is Ireland, as despite having a relatively small population, accounted for 5.5%, which is more than Belgium (5.5%) and Sweden (2.7%).
Plus, it was found that foreign buyers go for homes that are 27% more expensive than those purchased by Spanish buyers. In general, British non-resident buyers are middle-aged and have upwards of €213,000 to spend.
Where are foreign buyers headed?
Valencia is the favourite of international buyers.
Valencia community with its combination of beautiful countryside, the cool cities of Valencia and Alicante, and (of course) the glittering Costa Blanca has captivated overseas buyers so greatly that it accounts for 27% of property purchases. Catalonia and Andalucía follow, accounting for 16.4% of home purchases.
A buyers’ market
According to Spanish notaries, in 2023, the housing market saw a decline in sales by more than 10% compared to the previous year.
However, it is worth putting these figures into context. In 2022, the Spanish property market saw a boom. This was because with pandemic restrictions lifted, both Spanish and overseas buyers had easier access to the property market. Those that had not been able to act on their buying plans in 2020-21 were suddenly able to. So, it’s important to note that 2023 was still a strong year for the Spanish property market. Indeed, the fourth quarter of 2023 was the third-best in terms of the volume of sales over the past 16 years.
Gearing up to buy in Spain within the next few months? Call our friendly Spain Resource Team on 020 7898 0549 or email [email protected].
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