According to registration data, the demand for Spanish property from foreign buyers has increased significantly in the last quarter of 2021. The share of foreigners in purchases of houses in Catalonia reaches a percentage unprecedented before the pandemic in conditions of high demand: in October, November and December 2021, more than 12% of all property transactions were made by non-residents. The British have once again become leaders in home purchases by foreigners, having the edge on the Germans, and neither Barcelona nor Madrid are among the most popular regions. But first things first.
The situation in the Spanish market
The improvement in the health situation and the recovery of the citizens’ mobility contributed to an increase in transactions with foreigners. Experts believe that significant control over the spread of the virus ensures that the up trend will continue in 2022. The market expects good results in terms of the number of transactions made by foreign buyers.
Share of housing purchases by foreigners
With reference to the registration data, in the last quarter of last year, about 144,000 transactions with the acquisition of property were carried out in the country. Among them, 12.6% were carried out by foreign citizens, i.e. about 18,150 transactions. If we study investors by nationality, then people from the following countries were in the lead (the number of transactions is in brackets): Great Britain (2,219), Germany (1,953), France (1,336), Morocco (1,024), Belgium (983) and Sweden (937).
This data makes UK citizens the main group interested in living in Spain, after having been pushed aside by the Germans in the previous 3 months.
Spanish real estate investments
It can appear to be a wise financial move to invest in Spanish real estate. There are some regulations you must follow, though.
There are no limits on buying real estate in Spain to reside in. However, be aware that regulations governing who may purchase investment properties vary from region to region. Before making a purchase, it’s crucial to get local guidance because laws can change across the nation. The majority of the main Spanish banks, most notably Santander, Banco Bilbao Vizcaya Argentaria (BBVA), and CaixaBank, provide mortgages to non-residents. A mortgage can also be obtained through a foreign bank.
By the end of 2021, Spanish home prices had increased by 6.4 percent year over year. Existing homes saw value growth of 6.4 percent, while newly constructed homes saw value growth of 6.1 percent. Remember that these numbers could change given the pandemic’s effects on property markets around the world.
If you’re considering purchasing an investment property in Spain, you should conduct research on the potential returns as well as the additional expenses associated with purchasing and setting up the property. The cost of purchases varies across the nation. A property transfer tax, legal expenses, and land registration fees are typically required.
The most popular regions
Intriguingly, neither Barcelona nor Madrid were among the top 3 in terms of interest from foreign buyers. The Balearic archipelago, the Canary archipelago and Valencia are the regions with the highest share of owners of other nationalities.
In percentage terms, the situation by region looks like this: the largest percentage of transactions with investors from abroad fell on the Balearic Archipelago (38.9%), the Canaries Archipelago (25.9%), Valencia (24.3%).
This percentage is made up of foreign operations in Alicante (39.3%), Balearic Archipelago (38.9%), Malaga (30.6%), Santa Cruz de Tenerife (28.8%), Girona (27%), Las Palmas (22 .2%), Murcia (17.5%), Almeria (17%), Castellón (13.2%) and Tarragona (12.5%).
It can be observed that buyers from abroad pay special attention to maritime regions.
The Spanish notaries say that the recovery continuity of the foreign demand for housing during 2022 will be due to an improvement in the health situation and the availability of international moving.
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