Foreign demand for property in Spain hit an all-time high in the third quarter of 2022, according to the latest figures provided by the land registries.
After a drop in Spanish property purchases during the Covid-19 pandemic throughout 2020 and 2021. This year has seen a surge of foreign buyers returning to Spain to purchase properties. The Spanish land registry office inscribed over 26,000 properties in the first half of this year which is an increase of 61% over the same time period in 2021.
During the pandemic, the Spanish property market experienced a slump with house prices dropping and some feared that this would instigate a long slump in the property market. Instead, 2021 saw an increase in purchases and 2022 witnessed a very steady boom. In the first half of this year house prices across the country increased by 8%, compared to 2021.
Lifestyle Choice
The pandemic has had an impact on buyers' preferences when it comes to purchasing properties. The lifestyle offered in Spain has become a strong determining fact in what people chose to purchase. Foreign buyers are looking at Spain as the perfect place to buy because of both its lifestyle and also its sound investment record and they have put their money where their mouths are in record numbers.
Remote working and the nomad visa that Spain is introducing are both appealing factors to foreign buyers. In fact, the number of foreign buyers in Spain increased by 15.9% so far in 2022.
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The British Are Back
It is no secret that the Brits love Spain! The climate, the beaches, the food and of course the lower cost of living are just some of the reasons why Spain becomes the country that many Brits call home. Despite Brexit and the pandemic, Britons remain the top foreign buyers in Spain with France and Germany. UK expats made up the largest individual growth rate of 68%. The Netherlands also saw an increase of 121% and the USA at 76%.
This is partly due to the fact that Spanish property prices remain competitive compared to other international countries and mortgage rates in Spain are cheaper than those elsewhere.
Financing Costs
Financing costs are at a record low. Together with people saving more during the pandemic buyers are supported by the fact that financing in Spain is better than ever. Yes, banks ave become pickier to approve mortgages, but fixed-rate mortgage rates are at their lowest.
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Costa Del Sol
The Costa Del Sol as always is a popular place to purchase in Spain. The 320 days of sunshine and ease of access make it the perfect place to purchase for many foreigners. Malaga region has seen one of the largest increases in foreign purchasers in the last year and this growth sees no signs of slowing down in the near future.
Buying or Selling Property in Spain? Contact Costa Space!
Costa Space is an independent real estate agency based on the Costa Del Sol providing comprehensive property services for the province of Malaga
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