The acquisition of property by foreigners in Spain has reached historic figures, led mainly by Romanian and Moroccan citizens. The Balearic Islands, the Valencian Community, the Canary Islands and the Murcia region are the most popular areas for these purchases.
In 2023, foreigners represented 15% of all real estate transactions, totaling approximately 88,000 sales, according to the College of Registrars. The Romanians dominated the market in 20 provinces, located both in the interior and in the north of Spain, while the Moroccans were concentrated in 11 provinces, mainly in the south.
The regions with the greatest tourist attraction were the most requested for the purchase of property by foreigners, with the Balearic Islands in the lead with 31.7% of the purchases, followed by the Valencian Community with 29.3%, the Canary Islands with 28.5% and Murcia with a 23.8%.
The majority of purchases, 50.4%, were made by non-EU people, and 9.7% of the operations exceeded 500,000 euros. The average interest rate was 3.3% and the average term of mortgage loans was established at 24.5 years. The average mortgage payment reached 706 euros, representing 32.2% of the average salary.
The Balearic Islands, with 54%, Madrid with 39%, the Canary Islands with 34.1% and Catalonia with 33.3% were the regions where the mortgage payment represented a higher percentage of the salary.
The average property holding period reached 17.3 years in 2023, the highest recorded to date. In addition, 1,845 bare ownership transactions were carried out, an increase of 11.3% compared to the previous year.
Regarding prices, the average value of properties increased by 1% to 1,963 euros per square meter, being the highest since 2008. New homes saw a 3.5% increase in their price, while used homes experienced a slight increase of 0.2%. However, the average price of homes purchased decreased by 1.1% in 2023, breaking the growth trend that had been maintained since 2014. The Balearic Islands and Madrid stood out with prices above 300,000 euros per transaction.
