After a two-year pandemic break, foreigners are actively returning to the Spanish residential real estate market. In 2021, residential sales to foreign buyers accounted for 10.8% of the total number of transactions in the sector. Over the past decade, the highest rate was 13%.
Despite the fact that in a global sense the share of foreigners is not high, it is still extremely difficult for experts to determine the general profile of the buyer and the preferred ways of buying. Different nationalities have extremely diverse preferences in regions, types of accommodation, and price ranges.
Real estate portal Idealista has produced a study attempting to determine the inclinations of foreign buyers in the local market based on search preferences collected in the 2nd quarter of 2022.
German Buyers
Idealista data shows that the Balearic Islands remain the most preferred shopping destination among Germans. Among the various municipalities of the archipelago, Palma holds a confident lead in investor interest. It is followed by Calvia, popular with investors interested in premium offers of the highest price category. Thus, 46% of houses sold in the city were traded at prices above €600,000.
The Germans also show interest in Majorcan cities such as Llucmajor and Manacor. Of no less interest to them are the Levante peninsula and the Canary Islands. Also in the top 10 most popular places for buyers from Germany are the cities of Torrevieja (Alicante) and San Bartolome de Tirajana (Las Palmas).
French Catalonia
Buyers and investors from France confidently choose the cities of Catalonia, among which the favorites are Barcelona, La Moraleja, Valencia, and Alicante. In the Catalan capital, the French are most often looking for cheap real estate. More expensive properties, such as villas, are usually bought in Madrid. Their average cost usually exceeds €1,000,000. Usual holiday destinations are Lloret de Mar and Roses on the Costa Brava.
British and Swedes prefer Malaga and Alicante
Swedish and British buyers are united by their interest in the provinces of Malaga and Alicante. The main focus of the request from the British are the capital cities of Madrid and Barcelona. In Malaga, interest falls on Marbella and Mijas. 1/3 of the houses that the British were looking for in Marbella from April to June 2022 cost more than €1,000,000.
Together with the Swedes, British citizens often look for offers in Costa del Sol. The most wealthy buyers and investors invest capitals there. Torrevieja and Orihuela (Alicante) are not far behind.
Moroccans prefer cheap housing in the interior of the peninsula
According to available data, in 2021 about 7% of all foreign property purchases in Spain came from Moroccans. Algeciras, Ceuta, and Melilla top the most sought-after locations among buyers from the neighboring country. The common denominator is the geographical proximity to Morocco.
If we talk about Moroccan investors, they are mainly interested in fairly cheap real estate in the depths of the Iberian Peninsula, in cities such as Ocaña (Toledo), Lleida, or Puertollano (Ciudad Real).
Buyers from Romania are one of the largest categories of foreigners on the market
Romanian buyers most often looked for residential property in the coastal and resort areas of Spain, for example in Santa Cruz de Tenerife, Castellón de la Plana or Oropesa del Mar. Also of interest to them were Malaga and Arona. The price range of the preferred property is less than €300,000.