Foreigners are actively returning to the Spanish housing market after the pandemic. In 2022, house purchases broke records, and the average price per sq.m. of real estate reached the highest level for all the time of accounting. In the luxury sector, foreign demand has even outstripped domestic demand.
During 2022 of this year, the main foreign buyers remained the British, Germans and French, although other nationalities began to occupy an increasingly prominent place. For example, the Dutch, Norwegians, Irish and Ukrainians, although for different reasons. Demand from the United States and Latin America is also gaining momentum, which is facilitated by the strengthening of the dollar against the euro.
Among the most important news of recent months is the introduction of a tax on large fortunes, a new temporary tax that will be paid by taxpayers with assets of more than 3 million euros and which will also affect non-resident foreigners, which may have an impact on the real estate market.
Record number of purchases by foreigners
The year 2022 has become historic in terms of the purchase of housing by foreigners. It was in the first half of the year, as well as in the summer.
According to notaries, the number of housing transactions in Spain concluded by foreign buyers amounted to 72,987 in the first half of the year, which is the highest figure in the historical series that began in 2007. In addition, these transactions accounted for 20.3% of the total number registered in the country as a whole, which corresponds to the record recorded in the second half of 2015.
The highest average price in history
Foreigners paid the highest price in history for buying a home in Spain in 2022. This is evidenced by the data of the General Council of Notaries, according to which the average price paid by foreign buyers for each square meter of real estate in the first half of the year was 2,062 euros.
In the first half of the year, prices rose year-on-year across Spain, with Extremadura topping the list with an increase of 34.3%, followed by Asturias (27.5%), Murcia (19%), Madrid (16.6%), Aragon (16.1%), Valencia (13.6%), the Canary Islands (13.1%), Cantabria (11%) and Catalonia (10.4%).
Which houses do foreigners buy and in which areas?
Experts say that foreigners in most cases prefer large houses with terraces and swimming pools, located mainly in coastal areas, for use as a second home.