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Foreign demand for Spanish property continued in 2017

Foreign demand for Spanish property continued in 2017

March 1, 2018
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Foreign demand for Spanish property continued in 2017 with overseas buyers purchasing over 61,000 homes throughout the year.

 

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Recent figures published by Spanish Property Registrars reveal foreign buyers were responsible for 13.6% of all home sales in Spain during the final three months of 2017 with British buyers returning to the market in force.

The number of home sales registered in Spain increased 19.8% during Q4 totalling 111,921 transactions, the greatest fourth quarter figures since the market recovery began. Of these sales some 15,266 were registered to foreign purchasers, a level not witnessed during the fourth quarter since the pre-crash boom years.

Compared to the same period in 2016 Spanish demand increased 19.7% while foreign demand increased 20.4%, accounting for 13.6% of all Spanish property sales at the close of the year, close to record levels.

Despite the uncertainties surrounding Brexit, British buyers accounted for 16% of the market share registering 2,384 purchases during the three month period. Some way behind followed French and German buyers who registered 1,242 and 1,198 purchases respectively.

Led by British, Swedish and Belgian buyers, growth in demand was strong in all markets aside from Switzerland who recorded a 16.1% decrease in buyer numbers, most likely due to the weakened Swiss Franc during the the latter part of the year.

The report also confirmed 7.6% growth in property sales prices during 2017 and the return of demand for new build properties. Whilst demand for resale homes has increased in recent years, the appetite for new builds has declined, however the trend took an about turn in 2017 with the number of second hand sales increasing 15.8% and new builds up 11.3%.