Residential Real Estate Market in Spain - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

With an improving economy, the Spanish property market is witnessing an increase in residential sales, steady price growth, and more construction activity. The Residential Real Estate Market in Spain was in the consolidation phase; however, since 2018, the country is on a recovery phase and is attaining a level of stable demand, with increased growth in the intensity of both the number of housing purchases and prices.

The housing demand in Spain increased by 9.3% in 2018, in which around 585,000 transactions were sales transactions, out of which about 10% were new construction units. The country’s housing demand is expected to continue the positive trend but at a slower pace, as slowing economic growth is anticipated for the coming months, which may be reflected in the housing market. However, new housing production is likely to continue at relatively moderate levels over the coming years. Assuming this growth rate, it is expected that the volume of housing units completed by 2019 may exceed 85,000 units and touch 100,000 units by 2020.

Scope of the Report

This report aims to provide a detailed analysis of the residential real estate market in Spain. It focuses on the market dynamics, technological trends, insights, and government initiatives taken in the residential real estate sector. Also, it analyzes the key players present in the market and the competitive landscape in the Spanish residential real estate market.

Report scope can be customized per your requirements. Click here.

Key Market Trends

Rise in International Property Buyers in Spain

Spain is a popular international destination for visitors, investors, and those looking to relocate to the country. It is a safe and stable country with a rich cultural tradition. International interest from buyers both inside and outside of the European Union is increasing. With 12.6% of the real estate transactions and 65,400 purchases, foreigners represent 1 in 8 buyers in Spain.

In 2019, foreigners bought 65,400 properties in Spain, while the total number of transactions reached 516,680. The breakdown by nationality shows that British buyers continue to dominate, representing 15.5% of the total number of sales by foreigners in Spain. German buyers ranked at the second position, accounting for 7.5% of the sales, and French buyers occupy third place, representing 7.4% of foreign purchases.

In 2018, over 100,000 homes were purchased by overseas buyers, accounting for nearly one-fifth of the total home sales. British buyers continue to make up the largest group of foreign nationals buying a property in Spain. They accounted for 14.8% of purchases in 2018, followed by French and German buyers at 7.9% and 7.6%, respectively. Some of the largest growths observed over the past five years have also come from buyers in Ecuador and Argentina. During the past five years, the number of international buyers has nearly doubled. The introduction of Spain’s golden visa scheme, which allows non-EU nationals to obtain residency in Spain if they invest half a million euros or more into real estate, has also brought an increase in international property buyers. The scheme has driven more foreign buyers to the Spanish prime markets, particularly from Morocco, China, and Russia.

To understand key trends, Download Sample Report