Spanish Housing Market Rebounds as Moroccan Buyers Lead Foreign Investment

The market trend between April and June is analyzed by the notaries who state that the purchase of homes by foreigners has recovered in the spring. Foreigners accounted for 10% of the transactions, compared to 9.7% in the first quarter, with an increase in absolute values (13,600 transactions, compared to 12,200 in the first three months of the year).

To read: Moroccan Buyers Surge in Spanish Property Market Despite Pandemic

In the second quarter, the Balearic Islands (29.8%), the Canary Islands (23.9%), the Valencian Community (19.5%) and Murcia (14.7%) were the regions with the most transactions carried out by foreign buyers. But as surprising as it may seem, the British have bought more houses in Spain during the period. Although they remain at the top of the ranking, they have recorded the lowest rates, i.e. 9.5% compared to 12.11% at the beginning of the year or the over 38% they achieved in 2008. They are closely followed by the Germans (9%), the Moroccans (8.3%), the French (7%) and the Romanians (6.1%).

To read: Moroccan Buyers Fuel Surge in Spanish Property Purchases Amid Price Drop

"Housing sales were divided between 80% collective housing (apartments) and 20% single-family housing (compared to a historical maximum of 22.5% in the fourth quarter of 2020). After the last two quarters, the proportion between the two modalities, it seems to stabilize at 80% for apartments and 20% for single-family homes," explain the notaries. It is only in six autonomous communities that the weight of chalets has increased from quarter to quarter: Andalusia, the Canary Islands, Castilla-La Mancha, Murcia, Navarre and La Rioja.

Another change that occurred in the spring is the behavior of the prices of second-hand homes and new constructions. According to the notaries, "the average price of housing continues to show remarkable strength in both its quarterly results and year-on-year. The 1,807 euros/m2 in the second quarter represent an increase of 1.5% compared to the previous quarter..."