August 19, 2016

Type of foreign buyer of real estate in Spain

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What foreigners buy property in Spain is a well-known fact. However, who are they and where do they choose their future home in Spain? The answers to these questions are also relatively well known: the British citizens do buying a property in Spain and they do it on the Spanish coast. The conclusion to be drawn, however, is less obvious, as it is still difficult to assess what will be the consequences of so-called effect of ''Brexit "- the British decision to leave the European Union- that is expected to affect the activities of Spanish real estate sector caused by this group of citizens in Spain.

But first, a little bit of statistic: in 2015 and as in recent years, citizens of the United Kingdom accounted for 21.34% of total purchases of property by foreigners in Spain, which was a significant increase in relation to 2014, when they accounted for a share of 16.72%, according to the Association of Registrars of the property of Spain. This trend continued in the first quarter of this year, as evidenced by official data obtained until the moment. The favorable evolution of the pound against the euro in the last year "may have been one of the factors that have contributed to this growth," – noted experts in the annual report of Registry of property transactions in Spain. "Undoubtedly it is nationality that represents the greatest contribution to foreign demand for real estate in Spain", – added the experts.

As for capital flows, which are moving in the Spanish real estate market, it is clear that interest in investing in residential property in Spain remains strong. According to the comments of the experts of the company Solvia, both domestic and international investors believe that the "Brexit" will not paralyze the real estate activities, neither will it low the interest in purchasing real estate in Spain. The main reason lies in the fact that Spain has improved macroeconomic prospects of major growth in the euro area, even after the result of British referendum has been known. "All this increases the attractiveness of the Spanish property market as a safe haven in the current scenario of international investments and their profitability", – as was stated in the report.

Therefore, according to the analysis we can talk about the following profile of foreign buyers of property in Spain. Basically, this type of buyer prefer a house or apartment in Spain and are citizens of the United Kingdom, with more than 46.7 years, most of them are retired or have an official position. This nationality dominates in Valencia, Murcia and Andalusia. In Catalonia, however, the French are the first buyers, followed by the Chinese and Russian citizens. On the Balearic Islands, the Germans top the list. This is the summary of an analysis made on recorded transactions with real estate in Spain, mainly dominated by this particular type of buyer, although it varies slightly depending on coastal areas analyzed.

More than 74% of transactions of purchase and sale of property are carried out with villas and apartments in Spain, and 19% of buyers prefer a home near the sea in Spain. This percentage varies slightly depending on the area of ​​the Spanish coast, but flats and apartments in Spain are more affordable for foreign buyers that single-family homes on the coast. The overall percentage of non-residents among foreign buyers is 27%, although this figure is relatively low in Barcelona (7%) and more than 32% in such areas as Alicante or Malaga.

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