In 2023, foreigners purchased over 87,000 houses in Spain out of a total of 583,000 transactions. This represented nearly 15% of the homes sold and was a record high in the historical series. Despite a decrease in the three most common nationalities buying houses in Spain – British, German, and French – three communities in the Mediterranean region saw significant growth in foreign purchases.
Murcia, the Valencian Community, and Catalonia all experienced an increase in foreign home purchases last year. The Balearic Islands remained the top destination for foreign buyers, with 31.5% of total home purchases coming from non-Spanish nationals. However, four communities saw a decrease in foreign market share in 2023. Overall, foreign demand has been a significant factor in the strength of the housing sales market in Spain, with two consecutive years of growth after a period of decline.
Alicante led the provinces in foreign home purchases, with almost 44% of homes sold to non-Spanish buyers. The distribution of foreign purchases points to factors such as tourism, retirement in Spain, and a growing labor market attracting migrants. While nationalities such as British and German continue to dominate certain regions (British on Balearic Islands and Germans on Mediterranean coast), other groups like Moroccans, Belgians and Italians have seen an increase in home purchases throughout Spain.
Sales of homes priced over half a million euros decreased last year despite rising housing costs. Foreign buyers continue to play a significant role driving sales and shaping market dynamics across different regions in Spain.
In conclusion, the real estate market continues to attract foreigners from diverse nationalities who contribute significantly to its growth and development. As more people look towards retiring or relocating abroad, Spain remains an attractive option due to its sunny weather, rich culture and thriving economy
