The prices of houses in Spain bought by foreigners hit record highs in 2022

The prices of houses in Spain bought by foreigners hit record highs in 2022

The price per square metre of foreign transactions stood at 2,062 euros in the first half of the year. The Danes are paying the highest amounts.

Foreigners are paying the highest prices in history to buy homes in Spain. This is shown by the latest data from the General Council of Notaries, which put the average price paid by foreign buyers for each m2 of housing in the first half of the year at 2,062 euros. 

The amount has grown by 10.6% year-on-year and by 2.28% compared to the second half of 2021, breaking the record in the series compiled by notaries since 2007, at the height of the real estate bubble.

The new maximum price has been driven mainly by the average price paid by non-resident foreigners for their homes (2,522 euros/m2, also a record, up 2.9% year-on-year), which far exceeds the price paid by residents (1,622 euros/m2, up 8.2% compared to the first half of 2021) and nationals (1,560 euros/m2, up 5.2% year-on-year).

 

According to notarial statistics looking at where foreigners made purchasers, the prices paid by foreign buyers for property in Spain have risen in year-on-year terms across the board. Extremadura is at the top of the list, with a rise 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%).

Prices grew by between 5% and 10% in Andalusia (9.7%), Galicia (9.5%), the Balearic Islands (8.2%) and Castile-La Mancha (7.3%), while the increase in La Rioja, the Basque CountryNavarre and Castile and Leon was less than 5%.

If we look at the data by nationality, we discover that foreigners who paid the highest amounts per m2 in the first half of the year were those from Denmark (2,870 euros/m2), the USA (2,837 euros/m2), Norway (2,701 euros/m2), Sweden (2,701 euros/m2), Germany (2,657 euros/m2) and Switzerland (2,567 euros/m2). Buyers from the Netherlands, France, Belgium, Italy and Ireland also exceeded the average price paid by all foreigners (2,062 euros/m2). In contrast, Moroccans (694 €/m2), Romanians (1,097 euros/m2) and Ecuadorians (1,198 euros/m2) paid the lowest average prices.

"The prices that grew the most were those paid by Americans (25.6%), followed by Ukrainians (25.4%) and Norwegians (21.5%). On the other hand, the countries with a decrease in prices paid were Russia (-8.9%), Sweden (-2.5%), Germany (-0.7%) and Argentina (-0.1%)," explain the report.

Growth in transactions, with the British leading the way

Foreigners bought 72,987 homes in Spain in the first half of the year, which represented 20.3% of the total number of transactions registered in the country as a whole. Their weight not only exceeds the average between 2012 and 2019 (18.7%), but, as already advanced by the Property Registrars, it is an all-time record, equalling the result of the second half of 2015.

In the last year, transactions led by foreigners have registered an increase of 52.7%, and 41.9% compared to the second half of 2021.

By nationality, the group of foreigners who purchased the most homes was British, with 10.7% of total transactions (7,793), followed by Germans (10.2%) and French (7.7%). The group of nationalities that includes the rest of foreigners from outside the EU accounted for 10.9%, the lowest percentage in three years.

For the third consecutive six-month period, notaries emphasise, "sales made by foreigners of all nationalities increased, but those made by the Dutch (121.5%), Norwegians (119.5%) and Irish (106.7%) did so with greater intensity".

Source: Idealista


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