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Spain experiences surge in foreign demand for property

Thursday 5th April 2018

Written by Mark Burns, Hopwood House

With the latest figures revealed by the Spanish Land Registrar’s Association, it is fantastic news for the Spanish property market that foreign demand for property has seen a sharp increase. The overall Spanish housing market grew by almost 20% in the final quarter of 2017, with a total of 111,921 property sales, the highest 4th quarter period of the last three years. With the help of British investors, there were a total of 15,266 property purchases in Q4, which is the highest amount since the Spanish housing market peaked in 2007. 
British investors in Spain
Although lower than the 24.2% market share in Q4 of 2015, demand from British investors did increase from Q3 to Q4 in 2017, at 15.6%. These numbers would lead you to believe that Brexit has not yet taken its toll on the Spanish property market, although that may well change in the near future. Many Brits are looking to apply for passports in EU countries where they have family ties, allowing them to escape the potential wrath of Brexit.
A surge in foreign interest
When compared to the same period of the previous year, domestic demand for property increased by a total of 19.7%, whilst foreign demand for property also increased, at a total of 20.4%. As a result of such a big increase to the demand for property by foreign investors, 13.6% of the overall Spanish property market was represented by foreign property purchases, and this also represents a high since the peak in 2007.
British Investors were the front runners in Spanish foreign property purchases, with a total of 2384 property purchases registered in Q4, with France purchasing 1242 properties and Germany buying 1198. Although the Spanish property market was successful in attracting investors from all around the world, UK buyers accounted for more than 15% of foreign demand, whilst France and Germany both represented approximately 8%.
Spain saw a rapid increase in demand for its property by countries such as Belgium, Sweden and the United Kingdom, yet this demand was not matched by other countries in the way that many may have thought it would be. German demand only grew by 3.4%, whilst demand from those from Switzerland actually decreased by more than 16%. This, however, may be explained by the increase to property prices in both Germany and Switzerland, encouraging them to invest on a domestic level.
Where foreign investors are buying Spanish property
As a more in depth look at foreign investment into Spanish property, particular areas of Spain saw more investment than others. The biggest rise in sales came in Granada, with a 27% rise, with a whole variety of property available to investors. Costa Blanca also saw interest rise, with a 17% increase, whilst the Balearics and Malaga rose by 17% and 15% respectively.
For more information on buying property for sale in Spain, please contact Hopwood House.

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