Foreign buyers were 47% more active in the first half of 2021 than a year ago

Foreign buyers were 47% more active in the first half of 2021 than a year ago

The volume of housing purchases by foreigners in the first half of 2021 grew by 47% year-on-year (47,683 transactions) after the sharp decline recorded in the first half of 2020 (−37.3%) and in the second half (−10.8%), according to data from the General Council of Notaries.

This growth, according to notaries, is largely explained by the low figures from the first half of 2020 amid the Covid-19 pandemic.

Nevertheless, despite this increase, transactions completed by foreigners accounted for 15.4% of total sales at the national level, which is still below the average for the period from 2012 to 2019 (18.7%).

Foreign residents completed 66.1% of purchase transactions, showing growth of 55.5% year-on-year, while the remaining 33.9% of transactions were by non-residents, whose growth was 32.9%.

Growth recorded in all autonomous communities

The number of housing purchase transactions by foreigners grew in all autonomous communities. The leaders in growth were Asturias (83.2%), Galicia (81.8%), La Rioja (79.1%), and Castile-La Mancha (76.3%).

Above-average national figures (47%) were demonstrated by Castile and León, Aragon, Cantabria, Murcia, Andalusia, and Catalonia, where growth ranged from 64.7% to 49.8%.

The smallest growth was noted in the Basque Country (32.2%), Valencian Community (34.3%), Navarre (37.3%), Extremadura (38.3%), and the Canary Islands (39.0%).

Demand for expensive housing

The average price per square meter for foreign buyer transactions in the first half of 2021 was 1,863 euros, representing growth of 4.1% year-on-year.

Foreign non-residents continued to pay more for housing (2,452 euros per sq. m) than residents (1,498 euros) and Spanish citizens (1,481 euros).

The average price paid by non-residents grew by 9%, and by residents by 1.4%, in both cases exceeding the Spanish figure.

Regarding prices by autonomous communities, the dynamics were uneven: growth was recorded in eight regions, decline in the remaining nine. Double-digit growth was shown by the Balearic Islands (11%), followed by Andalusia, Galicia, Madrid, and Navarre with increases of 5.8–6.3%. Moderate growth was noted in the Valencian Community (2.5%), Canary Islands (2.2%), and Basque Country (0.7%).

Conversely, double-digit declines were observed in Extremadura (−31.9%), Asturias (−20.7%), Cantabria (−19.4%), and La Rioja (−16.6%). Relatively moderate declines were recorded in Murcia, both Castiles, Aragon, and Catalonia — from −8.0% to −1.1%.

Moroccans, Britons and Romanians — the most active buyers

By nationality, Moroccans purchased the most housing during this period — 10.8% of total transactions (5,159), followed by Britons (9.7%) and Romanians (6.5%).

Foreigners from countries outside the EU accounted for 13%. Sales to foreigners of all nationalities grew, but most notably among Swiss (90.2% year-on-year), Germans (75.1%), and Moroccans (74.8%).

The highest average prices per square meter were paid by buyers from Sweden (2,768 euros per sq. m), Denmark (2,680), Germany (2,676), Switzerland (2,464), USA (2,266), and Norway (2,223).

The average figure for all foreigners (1,863 euros) was also exceeded by buyers from Russia, Netherlands, France, Belgium, Italy, and Ireland. The lowest prices were paid by Moroccans (640 euros per sq. m), Romanians (967), and Ecuadorians (984).

By place of residence and regions, it was noted that French buyers led in share of sales among non-residents in both Castiles, Aragon, Catalonia, La Rioja, Basque Country, and Navarre.

Germans, in turn, were the main buyers in the island archipelagos and in Cantabria, while Britons preferred Andalusia and Murcia.

Among foreign residents, citizens of Morocco and Romania were the main buyers practically throughout the country, except for Galicia and the archipelagos, where the share of buyers from Germany, Italy, Portugal, and Great Britain was higher.