Spanish property market seeing more overseas buyers than ever.
18 June 2016
According to the most recent report by the Council of Property Registrars, Spanish property is seeing more overseas buyers than ever. In the past 12 months international buyers have purchased almost 48,000 Spanish properties; an increase of more than 13% on the previous year’s numbers.
The report also revealed that Brits still make up the largest proportion of overseas buyers by a significant margin; seemingly dispelling fears that the uncertainty surrounding the UK’s EU referendum would lead to a decline in British interest. British buyers accounted for 21% of all Spanish property purchases by overseas buyers in 2015; followed by French, German and Swedish buyers; each accounting for around 6%; and Chinese buyers at around 4%.
With the increasing popularity of Spanish property amongst international buyers, Spain’s property market is once again looking strong. With approximately 100,000 transactions between January and March, Q1 2016 was the market’s most active Quarter in almost 3 years.
While this increase in property purchases has been seen across all of Spain, it is Andalucia which has seen the most activity. In March, Andalucia saw 6,299 property transactions - more than any other region. Much like the rest of the country, the success of the property market in Andalucia is largely dependent on its popularity amongst international buyers.
The Costa del Sol, Spain’s most famous coastal destination and the centrepiece of the Andalucia region, is one of the country’s most popular locations for overseas buyers; attracted to the region by its year-round sun shine, golden beaches and a global reputation for glitz & glamour. In 2015 overseas buyers accounted for 80% of properties purchased in Marbella, a trend which shows no signs of slowing.
Aside from the lifestyle benefits of owning property in Spain, a Spanish property purchase is also extremely attractive as a financial investment; even more so with recent changes to legislation on owning a second home in the UK. As Spain’s property market recovers from ‘la crisis’ of 2008, prices are still considerably lower than before the crash, but are rising steadily based on the significant demand from overseas buyers. In fact, in the first quarter of 2016 house prices across Spain saw a 6.9% increase from the same period in 2015. As international demand increases and property prices continue to rise, buyers purchasing property in Spain today could stand to makes substantial financial gains based on the markets incredible capital appreciation potential.