Americans lead foreign property purchases in Spain

New data reveals that American nationals are paying significantly more for homes in Spain than most other foreigners, with the second half of 2024 witnessing a remarkable surge in property prices. This trend has sparked concerns about the ongoing housing crisis in the country, which has been identified as the primary worry among Spaniards, according to government surveys.

Despite soaring prices, affluent foreign buyers continue to find properties in Spain appealing. According to the Spanish Notary Association, foreigners paid an average of €2,362 per square meter when purchasing homes in the latter half of 2024. However, Americans, along with Swedes and Germans, exceeded the €3,000 per square meter threshold, with Americans averaging €3,390, Swedes €3,295, and Germans €3,224.

This marks the highest price paid by Americans and Germans for Spanish properties, while Swedes set a record in the first half of the previous year at €3,330 per square meter. The data suggests that many of these buyers are non-residents, indicating that their acquisitions are likely intended as holiday homes or investments while they maintain their residence abroad.

Interestingly, the number of Americans choosing to reside in Spain has increased by 10,000 from 2022 to 2024, hinting that many may have purchased homes as they transitioned to their new lives. The allure of Spain stems from its political stability, safety, and enhanced quality of life, according to these new residents.

The overall average property price in Spain during this period was €1,753 per square meter, including both local and foreign buyers. Notably, foreign buyers consistently outspend this average, with other nationalities also investing considerably more. For instance, Swiss buyers averaged €2,851 per square meter, Norwegians €2,800, and Poles €2,757. Conversely, buyers from China and Portugal paid lower amounts, averaging €2,160 and €2,050 respectively. Moroccans, however, had the lowest average price at just €703 per square meter.

During the second half of 2024, foreigners purchased 69,690 homes, reflecting a 10.3 percent increase from the previous year. These transactions constituted 19.5 percent of total property sales during that period, a slight decline from 2023’s average of over 21 percent.

While some nationalities, such as Russians, French, British, and Belgians, reduced their property purchases compared to 2023, Polish buyers showed notable growth. British buyers, despite a decrease, still led with 6,048 transactions, making up 8.7 percent of the total.

This surge in foreign property purchases coincides with ongoing discussions within the Spanish government and society regarding the effects of foreign investment on the national housing crisis. Notably, the golden visa program, which granted residency to foreign buyers spending at least €500,000 on property, was officially terminated on April 3rd. Furthermore, Prime Minister Pedro Sánchez proposed a 100 percent tax on non-resident non-EU property buyers or a complete ban on purchases for those lacking connections to Spain. Meanwhile, the Canary Islands' regional government has sought EU assistance to restrict non-residents from acquiring homes, and proposals requiring residents to apply for property buying rights after five years of residency have been rejected in Congress.