Foreign Interest in Spanish Property Market
The Spanish property market has traditionally attracted foreign buyers, particularly in coastal and urban areas such as Madrid and Barcelona. However, there is a growing trend of foreigners showing interest in smaller Spanish towns and villages near the coast, away from the busy tourist hotspots. These quieter areas, including Ciudad Quesada, Polop, Busot in Alicante, and Ojén and Viñuela in Málaga, are becoming increasingly popular among expats. This trend is backed by a study on property searches from abroad conducted by idealista, a leading real estate marketplace in southern Europe.
Foreigners Boosting Property Sales in Spain
Foreign citizens have significantly contributed to the increase in property sales in Spain. In 2021, they accounted for 17% of the over 655,500 units sold, according to data from the General Council of Notaries. Despite not reaching pre-pandemic levels, the number of homes bought by foreigners in Spain has never been higher. In 2021, over 111,743 transactions were carried out, surpassing the previous record of over 103,600 in 2018. Resident foreigners were the most active buyers, with over 66,600 transactions, compared to 45,100 among non-residents.
Top Foreign Buyers in Spain
Among resident foreigners, Romanians and Moroccans were the most active buyers in most autonomous communities. However, British buyers led the way in Valencia, Germans in the Balearic Islands, and Italians in the Canary Islands. Among non-resident foreigners, the British and French topped the list in almost all regions, followed by Germans, Belgians, and Americans.
Foreign Interest in Smaller Spanish Towns and Villages
While foreign transactions are common in major coastal markets such as Torrevieja, Malaga, Marbella, Alicante, and Valencia, and the large capitals of Madrid and Barcelona, there is a growing interest in smaller towns and villages. Foreign buyers are not straying away from areas with more temperate and sunny climates, but are looking for homes in less crowded locations along Spain’s “Costas” or coasts.
Most Visited Spanish Towns by Foreigners
Data from idealista shows that small towns with around 5,000 inhabitants or less, such as Ciudad Quesada, Polop, and Busot in Alicante, are the most visited by foreigners, especially from the Netherlands. These towns, which do not have a direct coastline but are located near large tourist areas, also receive significant visits from the United Kingdom, Germany, and Belgium.
Property Prices in Spanish Villages
Property prices in these Spanish villages closed the year at 2,207 euros/m2, 1,915 euros/m2, and 1,484 euros/m2, respectively. Most of the single-family homes on the market are priced between 300,000 and 500,000 euros on average. In the Valencia region, Palma de Gandía has also attracted interest from Dutch, French, and British expats, with prices averaging at 703 euros/m2.
Other Popular Areas Among Foreign Buyers
Beyond the Levante coast, Ojén, Viñuela, and Almogía in the province of Málaga and close to the Costa del Sol are also among the most sought-after areas. These towns are attracting interest from buyers from the United Kingdom, Germany, and the Netherlands. Ojén is in the Marbella area, while Viñuela is closer to Vélez-Málaga and the beaches of Torre de Mar and Caleta de Vélez. Almogía, located just half an hour from Málaga city, offers the most affordable prices at 900 euros/m2.
Foreign Interest in Other Areas of Spain
Foreign buyers are also showing interest in other areas of Spain, outside the Mediterranean coast and the Balearic Islands. Towns in Asturias, on the outskirts of Madrid, and in the Canary Islands have also attracted potential foreign buyers. In Asturias, Ribadesella and Nava have seen strong interest from the USA, the United Kingdom, and Germany. El Espinar, located between Madrid and Segovia, has received searches from the USA, the UK, and France. In the Canary Islands, La Vega de San Mateo, a small municipality on the island of Gran Canaria, is attracting interest from Germans, Italians, and British buyers.
