Foreigners resident and non-resident in the country represented 19.3% of sales in 2023, with 125 thousand transactions, and in the first half of the year the international investor bought a house at an average price of 2,600 euros/m2, with residents spending 1,600 euros /m2.
The Bank of Spain considers that the arrival of non-resident foreigners in the country to buy a house is one of the main causes for the increase in prices in the country, whether for acquisition or rental, according to the newspaper “El Economista” this Saturday.
Proving this sentiment is the latest annual report from the Bank of Spain, which guarantees that the weight of these buyers in total annual operations has grown significantly in recent years.
Foreigners resident and non-resident in the country represented 19.3% of sales in 2023, with 125 thousand transactions, below the 134 thousand purchases made in 2022. However, the report from the entity led by Pablo Hernández de Cos, points out that investors Foreigners transacted at a price 62.5% above what residents pay on average.
In the first half of last year, international investors purchased houses at an average price of 2,600 euros/m2, with residents spending 1,600 euros/m2. “This demand is characterized by high purchasing power in relative terms”, points out the Bank of Spain report.
According to data from ‘idealista’, the supply of permanent rentals fell by 15% in the first quarter of the year, while seasonal rentals grew by 56%, now representing 11% of the total housing supply.
At the end of 2023, non-resident foreigners spent an average of 2,715 euros/m2, an increase of 6.1% compared to the same period last year. The result is above the amounts paid by resident foreigners (1,720 euros/m2) and nationals (1,580 euros/m2).
In terms of nationalities, those who invest the most are Chinese clients, with 3,902 euros/m2, followed by Colombians (3,734 euros/m2), Venezuelans (3,608 euros/m2) and Ecuadorians (3,608 euros/m2).
Investors from the United States, Russia, Switzerland, Sweden, Argentina and Germany also surpass the 3,000 euros/m2 barrier. On the other hand, Irish, Portuguese, Belgian and French buyers spend an average of 2,500 euros/m2, while investors from Bulgaria and Romania do not exceed 2,000 euros/m2.
It is worth remembering that the Spanish government decided to eliminate the residence permit program for non-habitual residents that had lasted since 2013. “To guarantee that housing is a right and not just a speculative business”. It was based on this justification that Pedro Sánchez decided to end the golden visa regime, also based on combating the housing crisis in the country.
The current president of the Spanish government has assumed that he will take “the necessary measures to ensure that housing is a right and not just a speculative business. We don’t want a speculative investment model.”
The golden visa program attracted 580 million euros per year in foreign investment, according to data from the Spanish Administration for 2023, 94% of which through the purchase of a house. In other words, with the elimination of this regime, Spain will no longer receive 550 million per year in home purchases.
