In the first half of 2023, investment in properties by foreign buyers in Spain has demonstrated its resilience despite certain fluctuations. According to statistics provided by the General Council of Notaries, the acquisitions of homes by foreigners accounted for 21.4% of the total real estate market transactions during this period. Although these transactions decreased by 7.5% compared to the same period in 2022, it is important to note that the average price paid by foreign buyers reached €2,095 per square meter, representing a 1.4% increase compared to the previous year. This figure is the highest recorded since late 2008, surpassing even the average price paid by national citizens, which stood at €1,574 per square meter.
Among the various nationalities participating in the Spanish real estate market, Swedes, Danes, and Americans stand out as they acquire properties at higher prices. Swedish buyers paid an average of €3,036 per square meter, while Danes reached €2,930 per square meter, setting historical records. Americans, on the other hand, paid €2,921 per square meter.
On the other hand, Britons, historically the main buyers of properties in Spain, maintain their presence in the market. On average, they purchased properties for €2,077 per square meter, slightly below the values recorded six months ago. This marks the third consecutive quarter in which they have exceeded the €2,000 per square meter mark since the first half of 2022.
It is important to note that the prices of homes acquired by foreigners vary not only by nationality but also by whether they are residents or non-residents. Non-resident foreigners continue to pay higher amounts for their properties, with an average of €2,598 per square meter, significantly exceeding what resident foreigners pay, averaging €1,676 per square meter. This represents year-on-year increases of 2.8% and 2.9%, respectively, compared to the modest 0.7% increase recorded by national buyers.
This figure of €2,598 per square meter paid by non-resident foreigners is the highest ever recorded by notaries and has been surpassing the values seen in 2007, during the real estate boom in Spain, since early 2021. This reflects the persistent demand and willingness to invest in properties by non-resident foreign buyers in Spain.
Regionally, the evolution of prices paid by foreigners saw increases in 13 autonomous communities and only decreased in four. The largest year-on-year increases were observed in Extremadura (12.3%), Cantabria (11.1%), and Murcia (10.2%). In the most prominent residential markets, there were notable differences between the Canary Islands (8.4%), Catalonia (7.9%), Madrid (7.7%), the Valencian Community (5.2%), Andalusia (3.2%), and the Balearic Islands (1.9%). On the other hand, decreases were recorded in Aragon (-7.4%), Navarra (-2.6%), Castilla-La Mancha (-1.5%), and Asturias (-0.4%).
In Spain, the price of homes acquired by foreigners reached its third-highest value in the notaries' historical series. In the Community of Madrid (€3,130 per square meter) and the Canary Islands (€2,378 per square meter), prices reached their peaks in the first half of 2023, while in the Balearic Islands (€3,945 per square meter), they approached the ceiling reached at the end of 2022, nearing €4,000 per square meter.
In Catalonia (€2,433 per square meter), prices continue to be below their peak level. In summary, the Spanish real estate market remains an attractive destination for foreign buyers, with a variety of options and price trends across the country.
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