Who is Buying

Non Spanish Nationals bought over 25,000 residential properties in Spain in 2012, up 12% on 2011, according to the annual report by the College of Property Registrars (Registradores.org).

Foreign buyers are now almost as important to the Spanish property market as they were in 2006, when the real estate boom was in full swing, and waves of economic and "climate” migrants were investing in the Spanish property dream. The majority of these buyers look towards the coastal areas with the Costa Blanca, Balearics, Costa Brava and Tenerife proving very popular.

Whilst foreign buyers increased in 2012, purchases by Spanish Nationals decreased by 18%. Without the continued demand from overseas investors the property market could have performed even worse.

The demographic of these buyers has changed, although not as radically as some may have you believe. It is noticeable the increase in Russian and Chinese buyers in the Spanish market. However the British buyer is still the number one in terms of purchase made by foreign buyers in Spain with nearly 4,500 (16% of foreign total) homes purchased last year.

The British are followed by the French (2nd), Russians (3rd) and Germans (4th). Previously high purchasers before the crisis, the Dutch, are now 11th and the Chinese are increasing their investments at 9th position. Foreign demand is now more diverse than it has ever been, but at only 26,871 total buyers. This represents little much than British demand alone in 2006 (22,617).