Since this office is very concerned with real estate law, we would like to publish this article read in the Spanish economic newspaper EL ECONOMISTA for the interest of our clients.
Foreigners bought almost 15,000 homes in Spain during the first quarter of the year. For the fourth consecutive quarter, they accounted for a market share of more than 13% in the context of a strong increase in sales (+ 21.75% year-on-year) and prices (+ 7.74%). Their clear preference has been for coastal areas with two provinces where they have acquired more than 40% of the homes sold: Tenerife (44.16%) and Alicante (41.10%), according to data from the Land Registry.
This increase in demand has occurred despite the fall in British demand, accusing the effects of the uncertainty generated by the Brexit. Keeping the first position, they have registered their lowest percentage weight of the historical series, with 14.47% of the purchases of housing by foreigners. Fortunately, it has been offset by the increase in many other nationalities, led by French (9.64%), German (7.65%), Belgian (6.85%), Swedish (6.33%), Italian , 10%) and Romanians (5.26%).
They are followed by two other provinces with amounts above 30%: Girona (32.89%) and Baleares (31.71%). Relatively close is the province of Malaga (28.19%), followed by Las Palmas (24.01%), both above 20%. The rest of the provinces, with results above the national average, are Almería (17.75%), Murcia (15.95%), Tarragona (15.35%) and Castellón (14.02%).
In the last year, more than 55,000 homes have been bought by foreigners, compared to just over 48,500 of the previous 12 months. Its commitment to the Spanish market, especially in the Canaries and the East coast area, has revived the real estate market. The provinces where the foreigners have invested the most are also the ones that have registered the most operations, according to the report.
The Autonomous Communities with more operations
Thus, the autonomous communities with the highest number of sales recorded during the last quarter were Andalusia (21,313), Catalonia (19,666), Comunidad de Madrid (16,690) and Comunidad Valenciana (16,390). And by provinces: Madrid (16,690), Barcelona with (13,639), Alicante (8,416), Málaga (7,701) and Valencia (6,317).
In addition, in the provinces where foreigners have bought the most, there has also been a recovery in the sale of new homes. According to the registrars, 20,490 sales were recorded, 4,418 more than in the fourth quarter of 2016 (16,072), an interquarter increase of 27.49%. New housing sales have reached their highest levels in the provinces of Madrid (3,612), Malaga (1,847), Barcelona (1,536) and Alicante (1,261), whereas in used housing the highest results have been in the provinces of Madrid (13,078), Barcelona (12,103), Alicante (7,155), Málaga (5,854) and Valencia (5,523).
The price of housing has intensified its upward trend, giving rise to an interannual rate of 7.74%, which is the highest price growth since 2007. The quarter-on-quarter increase was 4.14%. This increase puts the cumulative adjustment from the highs reached in mid-2007 by -22.75%, while the accumulated increase is 17.34% in relation to the recent lows at the end of 2014.