Notaries: Foreigners Bought 13.4% More Homes During H1 2017

27 November 2017 – Eje Prime

International players are setting their sights on Spain for investment. The purchase of private homes by foreigners amounted to 50,087 operations during the first half of 2017, which represents an increase of 13.4% compared to the same period last year, according to data from the General Council of Notaries.

Operations completed by overseas purchasers accounted for 19.4% of the total number of sale-and-purchase operations signed during the period, compared with 20.3% during the first half of 2016, although that figure has been increasing since 2007, in line with the start of the economic crisis.

If we differentiate between resident and non-resident foreigners, 46.6% of the purchases were made by non-resident foreigners, up by 5.1% YoY, which means that operations by resident foreigners accounted for 53.4%, the highest proportion since 2011. They grew by 21.8% YoY.

All of the autonomous regions reported progress in terms of the number of homes purchased by foreigners and only five of them recorded increases below the national average, which stood at 13.4%, specifically: the Balearic Islands, with just 5.3%; Andalucía, with 5.4%; Murcia, with 5.7%; the Canary Islands, with 10.1%; and the Community of Valencia, with 12%.

Finally, the average price per square metre of the operations undertaken by overseas buyers amounted to €1,667/m2, which represents an increase of 2.9% in YoY terms. Specifically, the price paid by non-resident foreigners rose by 4.5% to €1,941/m2, whilst the price of homes purchased by residential foreigners increased by 2.8% to €1,405/m2.

Original story: Eje Prime

Translation: Carmel Drake

Notaries: Foreigners Bought 20% Of All Homes Sold In 2015

10 May 2016 – El Economista

Foreigners purchased 76,680 homes in Spain in 2015, which represents an increase of 12.9% compared with 2014 and means that foreigners accounted for 20% of all the homes purchased last year, according to data from the General Council of Notaries, which shows that the weight of house purchases made by foreigners has been increasing since 2007.

Distinguishing between resident and non-resident foreigners, 51.7% of these purchases were made by non-resident foreigners. Even so, the purchase of unsubsidised homes by resident foreigners increased by 18.2%, which exceeded the rate of growth experienced by non-resident foreign buyers (8.4%).

All of the autonomous regions reported increases in the number of purchases of unsubsidised homes by foreigners. Four regions recorded increases below the national average, namely Cataluña (+4.9%), Comunidad Valenciana (+7.2%), Extremadura (+9.8%) and the Canary Islands (+10.3%).

The other regions recorded increases above the national average, driven in particular by La Rioja (+59.1%), Castilla-La Mancha (+57.3%) and Navarra (+41.5%). Aragón (+39.8%), Castilla y León (+34%), País Vasco (+30.7%), Murcia (+25.8%) and Cantabria (+25.5%) reported slightly lower growth rates.

On the next level, with growth rates slightly above the national average, were Galicia (+23.2%), the Balearic Islands (+22.3%), Madrid (+17.3%) and Andalucía (+13.6%).

In 2015, the regions that recorded the most the purchases of unsubsidised homes by foreigners were: the Balearic Islands (44%), the Canary Islands (39%), Comunidad Valenciana (37%), Murcia (25%) and Andalucía (25%).

By contrast, the regions where operations made by foreigners carried the least weight were: País Vasco, Cantabria, Castilla y León, Galicia and Extremadura, where they accounted for around 4%.

Prices increased by almost 3%

The average price per sqm of house purchases made by foreigners in 2015 amounted to €1,598/sqm, which represents a YoY increase of 2.9%. The average price of homes acquired by non-residents rose by 5.6%, to €1,792/sqm, whilst the average price of properties bought by resident foreigners decreased by 0.1% to €1,367/sqm.

The average price of homes acquired by foreigners was higher than the national average in the Balearic Islands (€2,580/sqm), País Vasco (€2,047/sqm), Madrid (€1,867/sqm) and Cataluña (€1,856/sqm). Prices in the other regions fell below the national average, with the lowest prices recorded in Extremadura (€576/sqm), Castilla-La Mancha (€597/sqm), La Rioja (€710/sqm) and Castilla y León (€712/sqm).

In terms of the nationality of the foreigners who bought homes in Spain, the most active buyers were British (which accounted for 20.6% of the total), followed by the French (8.8%), Germans (7.5%), Belgians (5.7%), Italians (5.5%) and Romanian (5.3%). Those nationalities accounted for more than half of the transactions involving purchases of unsubsidised homes made by foreigners in 2015.

The nationality that increased its level of activity by the most in the market for unsubsidised homes during 2015 was Romanian, with a YoY increase of 59%. In addition, Ecuadorian (+43.1%), British (+37.7%), Moroccan (+25.8%), Italian (+18.5%), Irish (+17.8%), Chinese (+16.8%), Swedish (+15%), Argentine (+14.8%) and Swiss (+13.6%) buyers recorded YoY growth rates above the national average.

Original story: El Economista

Translation: Carmel Drake

House Sales To Foreigners Soar By 30% In Málaga

13 March 2015 – Diario Sur

In 2014, in the province of Málaga, 9,140 homes were sold to citizens from other countries, a figure that comes close to levels last seen before the crisis. This means that foreign buyers accounted for 38% of all real estate transactions in the province last year.

Foreign demand continues to be high in the Malaga property market, which recorded an increase of 28% in house sales last year, according to data published today by the Ministry of Development. Of the 23,929 homes sold in the province in 2014, 9,190 were to foreign buyers, which represents a percentage of 38%.

And the volume of house sales to foreigners has almost doubled in two years: from 5,140 in 2012 to more than 9,000 last year, representing a growth rate of almost 80%. Transactions involving Spanish buyers also increased in 2014, specifically, by 29%. However, according to the Chairman of the Association for Builders and Developers, José Prados, demand for primary residences, i.e. demand from buyers from Malaga itself, continues to be “very static”.

In terms of the foreign nationalities that are buying homes in Malaga, the ranking is led by the British, Scandinavians, French, Benelux, Germans and Russians, in that order, according to Prados. “Demand from Russian buyers, which peaked to compete with that shown by British buyers at one point, has cooled off significantly as a result of the internal problems facing the country”, he adds.

The vast majority of the foreigners that buy homes in Málaga (8,010 out of 9,190) are resident in Spain. The number of non-resident buyers has not increased significantly, despite the incentives introduced by the Government to grant residence permits.

Original story: Diario Sur (by Nuria Triguero)

Translation: Carmel Drake