Property market Spain – Foreigners share continues to rise

According to a report by the Spanish Notary Association the number of real estate purchases by foreigners who do not have their primary place of residence in Spain has risen in the first half of 2018. Across the whole of Spain up until the 30thJune around every fifth property on the market was purchased by a foreigner, representing an increase of 5.6% compared to the same period in the previous year.

Around every 5th property sold in Spain is purchased by a foreigner. On the Balearics German buyers dominate. Picture source: www.notariado.org

The strongest buyer group nationwide among the non-Spanish is the British and in the provinces of Murcia, La Rioja, Andalusia and the region of Valencia they occupy first place. Along the French border and on the Bay of Biscay the French are the strongest foreign buyers of Spanish real estate. On the Balearics, in particular in Mallorca, German buyers dominate with a share of 46% of the market.

Real estate sales in the Balearics slightly decreasing

With reference to the numbers of transactions the Ministerio de Fomento (Ministry of Development) determined a slight decline in the number of real estate sales in the first half of 2018. In Mallorca, Ibiza and Menorca 9.078 properties were sold during this period, 4,35% less than during the same period in the previous year.

Mallorca, with a share of almost 80%, remains the strongest real estate market in the Balearics, although a significant decline was noted on the largest Balearic island in the normally high-revenue municipality of Calvia which includes prime locations including Bendinat, Portals Nous and Santa Ponsa. This highly-priced area, popular especially with foreign investors, registered a total of 752 real estate transactions during the first half of 2018, almost 20% less than the same period in the previous year.

The south-east region of Mallorca is not only known for its lovely countryside, but also offers a rich selection of high-quality fincas.

The highest percentage increase in real estate sales is in the small municipality of Campos in the south-east of Mallorca. From January to June 2018 a total of 140 properties were sold here, during the same period in the previous year the number was only 83, an increase of just under 80%. By contrast, in the capital of Palma the number of transactions involved around 3.100 properties – almost the same as the previous year during that period.

Thorsten Kaiser, Sales Manager for Spain, confirms the south-east trend for the subsidiary Porta Mallorquina:

”The south-west continues to be a very desirable region although customers are increasingly finding other areas, and particularly the south-east of Mallorca has seen a significant increase in demand in the last two years”.

Porta Mallorquina is represented in this trend-region with a real estate shop in Santanyi. Throughout Mallorca the company has nine locations.

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