Is foreign demand for Spanish holiday-homes sustainable?

Is foreign demand for Spanish holiday-homes sustainable?

Is foreign demand for Spanish holiday-homes sustainable?

With some ups and downs along the way, the Spanish holiday-home market has expanded for about the last thirty years. Will this growth story continue, or are there reasons to think the market will peak and reset at a lower level, ending up a smaller niche business than it has been in recent decades?

I can’t find accurate figures, and I doubt they exist, but I can say with confidence that there are millions of second homes in Spain, hundreds of thousands of them owned by foreigners, tens of thousands of them are bought and sold each year, and tens of thousands of new ones being built right now.

Spaniards buying second homes they can easily reach by car is one thing, and that has been going on for much longer than the boom in foreign demand, which really started to take off in the 1980s. Local demand shares some headwinds and tailwinds with foreign demand, such as property prices and the availability of mortgages, but foreign demand has its own unique set of brakes and drivers that I think could prove challenging in the years to come.

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Source: https://www.spanishpropertyinsight.com/

Where do foreigners buy property in Spain?

Where do foreigners buy property in Spain?

Where do foreigners buy property in Spain?

We know that 16,209 Spanish homes were bought by foreign buyers in the second quarter of 2019, but where do they buy? This map above from the Spanish Association of Land Registrars helps answer that question.

The map shows the percentage of sales in each province that involved a foreign buyer. The higher the market share of foreign buyers, the darker the red.

The market with the highest proportion of property buyers from abroad was Alicante province in the Valencia Region, home to the Costa Blanca, where 41.81% of home sales in Q2 involved a foreign buyer.

Next came Tenerife province in the Canary islands (28.91%), followed by Malaga / Costa del Sol (27.9%), the Balearics (27.49%), and Girona / Costa Brava in Catalonia (26.04%).

In many provinces in the north and west of Spain foreign buyers are almost insignificant in the market, especially in Galicia where they are less than 1% of the market in all four provinces.

Generally speaking, European buyers led by the British, including second home buyers and lifestyle / weather migrants buy on the coast and islands where provinces are coloured orange and red, economic migrants from North Africa buy in the north east and cities where provinces are dark yellow, and hardly anybody from abroad buys in the many interior and northern provinces coloured light yellow.

The map shows the percentage of sales in each province that involved a foreign buyer. The higher the market share of foreign buyers, the darker the red.

The market with the highest proportion of property buyers from abroad was Alicante province in the Valencia Region, home to the Costa Blanca, where 41.81% of home sales in Q2 involved a foreign buyer.

Next came Tenerife province in the Canary islands (28.91%), followed by Malaga / Costa del Sol (27.9%), the Balearics (27.49%), and Girona / Costa Brava in Catalonia (26.04%).

In many provinces in the north and west of Spain foreign buyers are almost insignificant in the market, especially in Galicia where they are less than 1% of the market in all four provinces.

Generally speaking, European buyers led by the British, including second home buyers and lifestyle / weather migrants buy on the coast and islands where provinces are coloured orange and red, economic migrants from North Africa buy in the north east and cities where provinces are dark yellow, and hardly anybody from abroad buys in the many interior and northern provinces coloured light yellow.

Learn more here >

Source: https://www.spanishpropertyinsight.com/

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