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

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.

The Spanish housing market is witnessing the recovery of new housing units. At the beginning of 2019, there was a rapid growth in sales of new housing units in the country. In January 2019, 9,259 new homes and flats were sold which is one of the highest figures recorded in the country in the last five years and the sales were 11.2% more than in  2018. In the first quarter of 2019, Spanish real estate went up by 4.9% compared to the first quarter of 2018. 

In total, 47,645 property units were purchased in January 2019 (40% more than in December 2018). The most noticeable growth was registered in cities like Extremadura, Galicia, and Aragon. One of the most popular housing markets in 2019 was the Costa Blanca which is popular among the British and is also famous for its affordable housing prices.