Foreign Home Purchases and Sales in Spain: 3rd Quarter 2024

Spain Attracts Massive Interest with 24,741 Properties Sold to Foreigners in Q3 2024

As the Spanish real estate market continues its robust performance in 2024, foreign investment plays a pivotal role. In the third quarter alone, 24,741 transactions were recorded by foreign buyers, showcasing a vibrant market dynamic. This post delves into the details of these investments, highlighting key trends and nationalities driving the market.

Sales to foreigners in third quarter of 2024

The third quarter of 2024 witnessed a notable increase in real estate transactions, with a total of 166,609 properties changing hands, of which foreign buyers accounted for a significant 14.85%. This indicates a sustained interest in Spain’s diverse and appealing property market.

Total purchases and sales by foreigners in 2024 by quarter

Historical data on sales to foreigners in recent years

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Which nationalities are these foreign investors from?

In the dynamic landscape of foreign investment in Spanish real estate, British, German, French and, Belgian buyers have historically been predominant. However, the third quarter of 2024 has seen notable shifts, with emerging interests from different regions, including a growing presence of American investors.

• UK Buyers: With 2,108 transactions, UK nationals lead, maintaining their long-standing affinity for Spanish properties. This underscores Spain’s continued appeal as a favorable destination for British investors due to cultural ties and historical connections.
• German and French Buyers: German buyers completed 1,591 transactions and French buyers followed with 1,294. Both groups are drawn by the attractive property prices in Spain, reflecting ongoing trust in the Spanish market.
• Belgian and Dutch Buyers: Investors from Belgium and the Netherlands continue to show strong resilience, consistently pursuing properties in Spain. Belgian buyers completed 1,195 transactions, while Dutch enthusiasm also remains high, 1,244, reflecting their sustained commitment to the Spanish real estate market.
• Polish Buyers: Showing a remarkable uptick, Polish buyers are emerging as significant participants, marking a diversification of the investor base in Spain with 1,316 transactions in Q3 2024.
• American Buyers: In recent quarters, we have observed a steady increase in the activity of buyers from the United States in the Spanish real estate market. In the first quarter of 2024, there were 243 transactions, followed by 254 in the second quarter, and an increase to 270 in the third quarter. This growth reflects a rising interest from American investors, attracted by the quality of life and investment opportunities that Spain offers. It is anticipated that this trend will continue to grow.

This broadening of the investor base highlights a vibrant, evolving landscape where traditional European preferences are being complemented by renewed interest from American buyers, reflecting global confidence in the Spanish property market.

Graph over nationalities purchases in 3th Q 2024

Graph with the evolution of foreign buyers by nationality

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(source; Association of Registrars, chart showing purchases by foreigners from the 3th trimester 2024)

Which are the most popular places for foreigners to buy property in Spain?

Certain Spanish regions continue to attract the lion’s share of foreign interest:

Alicante and Malaga remain the top spots, beloved for their beautiful coastlines and expat-friendly communities. These provinces not only offer stunning natural beauty but also boast some of the highest provincial transaction rates for foreigners, with Alicante leading at 43.08% and Malaga at 34.76%.

The Balearic and Canary Islands also see high activity, appealing to those looking for vacation homes or rental investments. In particular, the Balearic Islands have reached a high of 32.5%, with Santa Cruz de Tenerife in the Canaries not far behind at 32.71%.

Other noteworthy provincial results were recorded in Girona (27.12%), Murcia (24.68%), Las Palmas (22.41%), and Almería (17.71%).

Graph over purchases by foreigners in the 3th Q 2024 per Province

(source; Association of Registrars)

Moreover, nine autonomous communities have recorded quarterly increases in the proportion of property purchases by foreigners. The highest shares were achieved in the Balearic Islands (32.5%), the Valencian Community (28.45%), the Canary Islands (27.25%), the Region of Murcia (24.68%), Catalonia (16.79%), and Andalusia (14.31%).

Graph over purchases by foreigners in the 3th Q 2024 per Autonomous Region

(source; Association of Registrars)

These regions offer diverse lifestyles and investment opportunities, making them highly attractive for international buyers seeking both the vibrant life of Spain’s coastal and island areas and the tranquility of its picturesque rural settings.

Despite the global economic fluctuations, the Spanish property market’s allure for foreign investors remains strong. The data from Q3 2024 suggests that Spain will continue to be a hotspot for international buyers looking for both lifestyle and investment opportunities.

Spain’s property market remains a beacon for foreign investors, drawn by its cultural richness, favorable climate, and investment returns. As we move into the final quarter of 2024, the outlook is optimistic, with expectations of continued robust activity from international buyers.

For those considering an investment in Spanish real estate, or for more detailed insights into the market, feel free to reach out to us at Fuster & Associates. We’re here to help you navigate the market with expert advice and comprehensive support.

We want to help you navigate all the legal complexities that comes to buying or selling a house in Spain, but this article is legal information and should not be seen as legal advice.