House Sales to Foreigners Fall Sharply in the Balearic and Canary Islands

13 May 2019 – El Confidencial

According to data from the General Council of Notaries, sales to foreigners fell by 15.3% in the Canary Islands and by 13.5% in the Balearic Islands during the second half of 2018, compared to the same period a year earlier. This is significant because overseas buyers currently account for almost 38.5% of sales in the Balearic Islands and 34% in the Canary Islands.

Several property developers have been feeling the pinch. Competition has increased a lot, above all in some local markets, and prices have risen in certain areas, due to a shortage of land and increased competition, which is deterring demand.

House purchases by foreigners have also been showing some signs of stagnation at the national level, with lower growth rates recorded in 2018. Foreigners closed 50,249 operations last year, which represented an increase of just 1.4% YoY.

The Brits are back

Despite the decreases, the most active buyers during H2 2018 were the Brits (15.3%), followed by other foreigners from outside the EU (12.1%) and then the French (8.0%), Germans (7.5%) and Romanians (7.1%). In the case of the British, it seems that the initial shock of the results of the Brexit referendum (which caused purchases by Brits to fall by 23.6% in H2 2016 and by 16.1% in H1 2017) has worn off.

Original story: El Confidencial (by E. Sanz)

Translation/Summary: Carmel Drake

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