Spain is a magnet for foreign investors

Spain — record demand, stable growth and unique opportunities

Spain has occupied a special place in the European real estate market for many years, being one of the most attractive countries for foreign investors and private home buyers. Despite global economic fluctuations and rising interest rates on loans, it is foreign citizens who stimulate the development of the Spanish real estate market, setting new records in the number of transactions and demand dynamics. The phenomenal popularity of Spain among foreign buyers is due to a number of factors:

1. Affordable real estate prices compared to other European countries.
2. High quality of life, including developed infrastructure, mild climate, long coastline and rich culture.
3. Loyal legislation in relation to foreign owners.
4. The possibility of obtaining a mortgage on favorable terms (from 3.5% per annum for up to 25 years).
5. The «golden visa» program, which allows you to obtain a residence permit for the whole family when buying real estate from 500,000 euros.
6. Stable demand for rental housing in tourist regions, providing owners with passive income.
7. Steady growth in real estate prices, guaranteeing the safety and increase of invested funds.

Record demand and price dynamics in 2024

In 2024, the interest of foreign investors in Spanish real estate reached unprecedented heights. In the first 9 months, foreign buyers concluded 125,857 transactions, which is 30% more than five years ago and amounts to 18.4% of the total volume of housing sales in the country. In the first half of 2024 alone, foreigners purchased 69,412 properties — 1.8% more than in the same period last year. The traditional leaders among foreign buyers remain citizens of the UK (8.4% of all foreign transactions), Morocco (7.9%), Germany (6.8%), France and Belgium. At the same time, the presence of investors from the USA, Poland, Portugal, Italy, Ukraine and Ireland is growing rapidly, having broken their historical records in terms of the amount of real estate purchased in recent years.

In some provinces, particularly popular with foreigners, such as Alicante, the share of foreign transactions reaches 40% of the total market. The most popular regions remain Valencia, Andalusia, Catalonia and the Costa Blanca and Costa del Sol coasts. Buyers choose both modern new buildings and secondary housing, luxury apartments and villas in prestigious areas of Barcelona, ​​Malaga, Torrevieja and other resort towns. Price dynamics also show steady growth: in 2023, the cost of new buildings increased by 11%, secondary real estate — by 3.2%, and the average price per square meter in the spring of 2024 was 1998 euros.

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Investment attractiveness and market development forecasts

Experts agree that the Spanish real estate market will remain one of the most promising for investment in the coming years. Constantly growing demand from foreign buyers against the backdrop of reduced supply is creating a stable trend towards rising property prices, especially in popular resort areas. This not only protects investments from inflation, but also allows for high profitability when renting out real estate. In addition to attractive returns, investors have the opportunity to become homeowners in a country with a high standard of living, a developed healthcare system, reliable legal protection and a comfortable climate. An additional bonus is the wide network of management companies ready to take on the maintenance and rental of real estate in the absence of the owner.

Nuances and difficulties for foreign buyers

Despite the many advantages, foreign investors may encounter some difficulties when buying real estate in Spain. First of all, these are bureaucratic procedures, the language barrier and the peculiarities of local taxation. Thus, in some regions, for example, Valencia and Extremadura, an additional tax on empty properties has been introduced for owners of several housing units in order to stimulate the market and contain prices. The issue of transferring information about property owners to third countries is not legally supported — Spain protects the private property rights of its foreign clients. To minimize possible risks, experts recommend working with reliable real estate agencies and carefully studying all legal, financial and tax aspects of the transaction.

As a result, we can say that Spain confidently holds the status of the most attractive country for foreign real estate buyers, offering a unique combination of affordable prices, stable growth, high profitability potential, loyal legislation and excellent quality of life. Foreign investment in Spanish real estate demonstrates record figures from year to year, confirming the country's status as one of the best global destinations for both personal use and professional investment. Steady demand from foreign buyers, limited supply and favorable expert forecasts guarantee the continuation of positive market dynamics and open up wide opportunities for profitable investments in Spanish real estate. Buying a home in this sunny country allows you not only to receive a stable passive income from rent, but also to enjoy all the benefits of living in one of the most comfortable and hospitable countries in Europe. Despite some bureaucratic and tax nuances that should be taken into account when buying real estate, Spain remains a safe haven for investment, offering foreign owners high-quality legal protection and attractive conditions for increasing capital.