Foreign buyers snap up over 250,000 homes in Spain in two years

In the last two years, according to the Notariado Español, the association of  Spanish notaries, overseas buyers have bought over 250,000 homes in Spain

In the last two years, according to the Notariado Español, the association of  Spanish notaries, overseas buyers have bought over 250,000 homes in Spain, usually with the help of an expat Spanish euro mortgage. Spain remains one of the most attractive destinations in the world for non-resident foreigners, with climate, gastronomy, public services and an affordable house prices all factors driving real estate transactions by overseas buyers.

Industry estimates suggest mortgages average 190,000 euros, buyers tend to be in their mid 40s, usually salaried or self-employed and UK nationals,  whether living in the UK or working as expat, remain one of the largest, if not the largest, category of foreign buyers. UK passport holders still make up nearly a quarter of all foreign buyers in Spain, according to industry estimates.

Commenting on the figures, Guy Stephenson a director at expat mortgage brokers Offshoreonline said, “Since Brexit, we have seen significant changes in the market for UK nationals looking to purchase in Spain and other parts of Europe, in particular in France, Portugal and Italy. Spain remains one of the most open markets, with Spanish mortgages for non-residents readily available. Portugal too, offers a good choice of expat mortgages for UK and non resident buyers. With BNP Paribas exiting the French overseas buyers’ market a few years back, though, the choice in France has become very limited, so we saw business levels fall steeply in that market, but they are starting to recover as new banks test the water. Historically, UK buyers have been the major players in both the Spanish and French expat buyer sectors.”

Average purchase prices in Spain, according to research shared with Offshoreonline by a leading bank are  297,000 euros, with deposits tending to be around 40% of the sale price, so significantly below the maximum loan permitted. This can be up to 80% of the sale price for a main home or 70% for a second property, the latter by far the most popular category, making up over 90% of purchases.

Popular locations include Andalusia (30% of purchases), Valencia (29%), Catalonia (12%), the Canary Islands (11%) and whilst houses can also be financed in the Balearic Islands such as Mallorca, these only make up  around 6% of purchases. Mortgage rates start at 4.65%, but are expected to fall further, as the European Central Banks embarks upon its rate cutting cycle.

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