In this article, we will look at which property in Spain foreigners prefer and for what purposes they purchase it.
- Housing market in Spain in 2023: how do foreigners behave?
- What kind of real estate do foreigners choose?
- Best places to buy a home in Spain
- Buying a home in Spain
Housing market in Spain in 2023: how do foreigners behave?
In H1 2023, the number of home purchases in Spain by foreigners decreased by 7.5%. Among foreign home buyers in the first half of 2023, it was Russians who showed the greatest increase in interest with an impressive 50.2%. Next come nationals of Ukraine with 41.6% and Americans with 13.6%.
As for prices, despite the fact that activity among buyers has decreased significantly, the market is showing stable strengthening. The average price per square meter is now €2,085 (or just over €200,000 for an apartment in Spain of approximately 100 m²). The indicator increased by 1.3% compared to data for the first half of 2022. The increase in property prices was most significant in the regions of Extremadura (12.3%), Cantabria (11.1%) and Murcia (10.2%), while Aragon saw the most significant price decline of -7.4%.
There are notable regional differences in the preferences of foreign buyers. Four autonomous communities recorded a remarkable increase in interest from foreign property hunters. These are Asturias (27.7%), Galicia (14.8%), Murcia (5.5%) and the Valencian Community (1.3%). Significant decreases were recorded in the Balearic Islands (-32.0%), Navarre (-19.7%) and Andalusia (-15.3%).
What kind of real estate do foreigners choose?
Many foreign investors are primarily looking for housing, the purchase of which will allow them to obtain a Golden visa in Spain. Under the terms of this program, the purchase of real estate for an amount of €500,000 or more entitles you to a residence permit or investment visa. In this case, you can purchase one or more units. The priority continues to be investment-oriented real estate that can generate long-term rental income. The demands of foreign buyers remain the same and are quite diverse:
- 3-bedroom villas;
Both residences in new buildings and secondary housing are popular.
Foreign investors are also showing interest in commercial real estate. First of all, these are supermarkets, restaurants and cafes — ready-made businesses. Typically, the budget in this case is set in the range from €500,000 to 1.5 million.
Especially popular options are units in Barcelona, since in this large Spanish city the economy is developing rapidly, and housing is easier to resell or rent out. As for average prices, in the first 6 months of this year, foreign property hunters bought housing costing over €2,000 per m².
Best places to buy a home in Spain
It all comes down to the expected lifestyle that the client is looking for. This could be moving with your family, a retirement holiday in a quiet area, or a desire to buy a second home in Spain. There are many options.
The Costa del Sol continues to be one of the most attractive destinations to buy property. Marbella and Estepona are considered the most sought-after locations on the coast. However, there are plenty of other options that are also worth considering, from Valencia to the picturesque Costa Blanca and Ibiza. Alicante proved to be the most popular place in Spain to purchase a home among foreigners in 2022, accounting for 40% of all transactions. If we talk about purchasing activity in general—among both the local population and visitors—then according to data for last year, the most popular places were Marbella (17%), Barcelona (2.5%), Estepona (2%), and Madrid (1.5%).
Some of the top places to buy a home in 2023 include:
- Torrevieja. Located between two lakes and the Mediterranean Sea, it is famous for its beautiful sandy beaches and promenades and offers a wide range of entertainment options: there are several golf courses, water sports facilities, water parks and a vibrant nightlife. In this cozy destination you can find apartments from €45,000 as well as small villas from €55,000, 3-bedroom units can be purchased for €65,000;
- Villamartin is a village that is located just a few kilometers south of the Costa Blanca, close to the prestigious Villamartin Golf Club, restaurants in Villamartin Plaza and also very close to Alicante. It is home to a vibrant international expat community, entertainment options, Punta Prima and Playa Flamenca beaches, and the shopping district of La Zenia. Prices start from around €60,000 for a 1- and 2-bedroom apartment, and with a budget of €75,000 you can find plenty of great options. You can buy a beautiful villa with a swimming pool for €400,000 or more. For this price you can even find luxury residences with 5 bedrooms;
- Estepona is a rapidly developing city and is currently a favorite place for many foreigners in the Costa del Sol. It is located an hour's drive from Malaga airport and is part of the New Golden Mile, which starts west of Marbella and passes through San Pedro. It is difficult to find anything under €100,000 in this area. For an apartment with 2 bedrooms on the secondary market you will have to pay at least €140,000. New apartments cost from €170,000;
- Marbella. The area is still popular with property buyers thanks to its excellent entertainment, sports facilities and developed infrastructure. However, it is important to note that the term Marbella in an estate agent's list can cover quite a wide area (up to 35 km towards the port of La Duquesa) and therefore prices will vary significantly. This is one of the factors that attract many home buyers to this area. For instance, you can find an apartment for less than €100,000 if the property is located 20 minutes from the center. However, to purchase a 2-bedroom townhouse just a few minutes' walk from the Puerto Banus marina, you will need approximately €170,000.
Buying a home in Spain
On our real estate platform you can check out the latest offers including apartments, houses and villas in Spain and choose the option that suits you most. Easy-to-use filters allow you to sort residences by price, square footage, location and other parameters. Prices are indicated in dollars and euros. Start searching for your future Spanish home for relocation or investment today.