Foreign investment in housing at historic highs

Spain continues to be on the international real estate investment radar. In a context of global economic recovery and stability in the residential sector, home purchases by foreign nationals continue to increase.

According to the latest report from the General Council of Notaries, foreign purchases and sales increased by 10.3% year-on-year in the second half of 2024, reaching a volume of 69,690 transactions, the third highest figure since records began.

This rebound is not only notable for the number of transactions, but also for the record prices paid by international buyers. On average, the square metre stood at €2,362, an increase of 8.6% compared to the same period last year.

From the Business Development Department of DEXTERÁngel García reinforces these figures, pointing out that "In fact, we are not only seeing a clear upturn in luxury but also in ultra-luxury in enclaves such as the Balearic Islands, Alicante and, of course, the Costa del Sol, from Malaga Capital to Gibraltar..

A relevant fact in recent times is the return of non-resident buyers, i.e. those who do not live in Spain on a regular basis but who acquire housing as an investment, second home or with a view to future migration. This group represents 41.9% of total foreign transactions, with a growth of 8.2%. In addition, the average price paid by non-residents exceeds 3,000 euros/m2.

Ángel García points out that "Much of the growth is to be understood from the promotion of alternative financing with private capital for real estate development. DEXTER is helping to develop a large number of developments, especially along the Mediterranean coast, which end up being bought by foreign residents"..