Foreign investment in housing rises and does not see a ceiling
It is a trend that has known no limits in recent years. And its horizon remains in the short term. Foreigners continue to bet on real estate as an investment in Spain: to consolidate assets and obtain income.
Specifically, Andalusia and the Madrid region are particularly popular destinations among Britons, while Germans prefer the Valencia region and the Balearic Islands. Thus, Spain is consolidating its position as not only one of the biggest and best tourist destinations in the world, but also one of the most attractive for real estate investment.
It is to be expected, therefore, that foreigners will make up a significant part of the housing market in our country. In fact, in the third quarter of 2024 alone, sales by foreigners accounted for 14.85% of the total, four points more than three years ago, according to the latest data from the Association of Registrars.
Despite recent price increases, the Spanish market continues to offer more competitive prices than other destinations. Thus, despite the scarce supply, foreign demand continues to increase.
From DEXTERRubén Miñarro, Senior Risk Analyst, points out that "When we analyse the developments in coastal destinations, for example in the area from Malaga to Gibraltar, we clearly detect that the final foreign buyers of the developments we finance exceed 50%, and many of them acquire the property with their own resources, without a mortgage, which gives an unquestionable commercial strength to these projects we are committed to"..
At the provincial level, Mediterranean beaches are once again predominant. Thus, the five provinces with the most sales by foreigners are Alicante (43%), Malaga (34%), Santa Cruz de Tenerife (32%), Balearic Islands (32%) and Girona (27%).
