Moroccan citizens, among the main home buyers in Spain
British, Germans and Moroccans were, in that order, the main foreign clients in the Spanish property market during the second quarter of 2024
Of the 146,273 homes sold in Spain between April and June 2024, foreign investors bought some 21,700, representing 14.8% of the transactions, according to the latest report published by the Spanish Association of Property Registrars.
- Moroccans, in the top 3
- The British give ground
- Balearic Islands, the preferred destination
- The price per square metre rises
Moroccans, in the top 3
One of the most noteworthy data in this report is the rise of Moroccan citizens in the ranking of main foreign home buyers in Spain. This group accounted for 6.1% of the real estate sales and purchases registered in Spain between April and June last year, which represents an increase of 0.04% compared to the figure in the Registrars' previous report, corresponding to the period January-March 2024.
Among the main reasons for the increase in the number of home purchases in Spain by Moroccans are the geographical proximity between the two countries, the cultural ties between them and the improved investment opportunities in our country.
Data from recent years point to an upward trend in property purchases by Moroccan nationals. According to the latest report by the Statistical Information Centre of Notaries (CIEN), corresponding to the second half of 2023, Moroccan citizens led the way in home purchases in Murcia (40%), Navarre (33%), La Rioja (27%), Extremadura (26%) and Andalusia (18%).
In total, the number of real estate transactions carried out by Moroccans in our country was 4,150 between July and December 2023, below the record of 5,365 transactions registered in the first half of 2022.
The British give ground
Returning to the Registrars' data, traditionally, property sales and purchases by foreign nationals in Spain have been led by British nationals, who a decade ago virtually monopolised the market. However, the combined impact of Brexit and economic uncertainty has reduced the potential of UK clients in recent years.
Thus, in 2014, British citizens accounted for 15.77% of foreign real estate transactions in Spain, a proportion that, ten years later, has fallen to just 8.37% in the last quarter, 0.76% less than in the previous quarter. Even so, the British continue to be those who have carried out the most real estate transactions during this period.
In second place are German nationals, with 6.98% of the total number of transactions carried out by foreigners. In this case, the economic stability and quality of life offered by Spain are the main arguments.
After the aforementioned third place of Morocco, fourth place among foreign home buyers in Spain goes to Romania, with 5.31%, followed by France (5.22%) and Italy (5.18%).
Rounding out the top ten are the Netherlands, Belgium, Poland and Ukraine.
Balearic Islands, the preferred destination
In terms of the distribution of property sales and purchases carried out by foreign nationals, 33.37% were concentrated in the Balearic Islands, a preferred destination for investors with high purchasing power.
The Canary Islands accounted for 31.11% of sales to foreign investors, with their attractive climate, proximity to Morocco and tax benefits as the main arguments.
In third place was the Valencian Community (28.79%), a tourist destination as attractive as the Balearic and Canary Islands, but with more affordable prices.
Fourth place went to the Region of Murcia (23.58%), a destination particularly recommended for golf lovers, which also maintains affordable prices. And fifth place went to Catalonia (16.11%), a very attractive destination for international investors.
The price per square metre rises
As indicated by the Real Estate Register Statistics for the second quarter of 2024, the average price of homes sold in Spain during this period has experienced a moderate increase of 2.9% compared to the previous quarter, up to 2,057 euros per square metre.
In the case of used housing, the cost has increased by 3.8%, while in the case of new housing it has barely increased by 0.3%.
The highest prices are also paid in the Balearic Islands, with an average of 3,534 euros per square metre. It is followed by the Community of Madrid (3,390 €/m2), the Basque Country (2,928 €/m2), the Canary Islands (2,528 €/m2) and Catalonia (2,500 €/m2).
At the other extreme, the regions with the cheapest house prices were Extremadura (813 €/m2) and Castilla-La Mancha (876 €/m2).
In total, 117,098 new homes were sold in this period (2.6% less than in the previous quarter) and 29,175 new homes (6.6% less).