Recent figures show that the number of sales involving foreign buyers grew 15.6%, compared to the same period in 2016. The figure is even more prominent when you consider the number of British buyers for Spanish property dropped by 23.6% year-on-year.
Notary figures reveal that during 2017 cash buyers are still in the majority at 55%. It is interesting to note that the regions with the highest proportion of cash buyers are also the regions with the largest number of foreign buyers. Local buyers are more likely to use a mortgage. According to the Ministry of Public Works in Spain, Alicante province has the highest percentage of foreign buyers in Spain at 48.25% in Q1 2017
Overall the Spanish property market increased by 14.4% in the first three months of 2017 with domestic demand for property up by 14.2%. This is reassuring news. However, the European Union is currently addressing its greatest challenge to date, Brexit.
When you consider Brexit and the fall in the value of sterling, you might be surprised to learn that British investment in Spanish property for 2017/Q1 was still the biggest group of foreign investors at 14.74% with France second at 10% and Germany close behind on 8%. It will be interesting to see whether this mix fluctuates after the Brexit negotiations have been concluded, because there is no doubt that this issue has had a significant impact on UK buyers when you consider the year on year figures.
Brexit has left the pound significantly weaker against the euro and has created
uncertainty particularly for those looking to permanently relocate to Spain. For people
wanting to buy a holiday home or investment property, the situation is largely the same
If you are considering purchasing a property please contact us for advice. Contact Us