Foreign purchases boost real estate market, driven by alternative financing

They are factors in the same equation. In the world of housing transactions, foreigners continue to demonstrate their interest in buying a home in Spain. In the second quarter of 2023 alone, foreign buyers accounted for 14.94% of the total number of transactions, i.e. more than 22,700 sales and purchases. The trend is constant and even rising. 

This is the second highest weight in the total number of sales and purchases in the historical series published quarterly by the Association of Land Registrars since 2013, only surpassed by the 15.92% in the third quarter of 2022. It is also the fourth best absolute figure for transactions in a single quarter by foreigners. The figures are evident and are reflected in a number of other dynamics.

For example, in more and more areas of Spain, developers and builders are going ahead with their projects, knowing that commercialisation depends, to a large extent, and is guaranteed to be successful, on foreign buyers. This is especially the case in areas such as Alicante, Malaga, the Canary and Balearic Islands, some enclaves in Madrid... and other isolated points of the national geography.

These developers, in turn, before starting work, are turning to private capital, to alternative financing, which in the case of DEXTER allows them to take the step forward without having pre-sales, without reserves. As the Senior Risk Analyst, Rubén Miñarro, points out, "both in developer loans and to complete the purchase of land, even in the purchase of assets that are refurbished and updated, we have a very clear point in our favour when we see that, due to the area, the type of property... there is going to be a high percentage of purchases by foreign nationals. In coastal areas it is totally evident", concludes Miñarro.