Statistics from a recent study of the Spanish property market, has revealed that British buyers have pushed foreign demand for property on the Costa del Sol to record levels.
14.4% of all Spanish property sales inscribed in the Property Register in the last quarter (Q4) of 2014 involved a foreign buyer (see chart above), reveals the latest report from the College of Property Registrars (Registradores). That is a record high for the share of foreign buyers in the Spanish property market.
For the year as a whole, foreign demand as a percentage of the market was 13% last year, fractionally down from 13.5% the year before. More than one in ten properties sold on the Costa del Sol today is purchased by a foreigner, including both residents and non-residents.
In overall terms, foreigners bought 46,000 homes in Spain last year, 12,000 in the last quarter alone. Foreign demand was up 11% last year, and 12% in the last quarter, whilst local demand grew by only 7% in the last quarter.
THE DEMAND BY NATIONALITY
The British have ranked in first place, making them once again the biggest group of buyers by a large margin with 9,956 acquisitions last year (21% of foreign demand last year), followed by the French with 4,116 (9%), and the Germans with 3,445 (7%). What we have found to be noteworthy, is the actual extent to which property demand (especially on the Costa del Sol) amongst the British has surged in the final two quarters of 2015, which has not been the case amongst the other nationalities. The Russian demand for purchasing property on the Costa del Sol declined steadily throughout the year, due to the weakening of the Rouble. On the contrary, as we have seen the pound strengthening, the British have been snapping up both resale properties and new developments on the Costa del Sol, left, right and center.
In conclusion, we can see from the 81% increase in British demand (compared to the previous year) that British buyers purchasing property on the Costa del Sol, are clearly back to being the dominant force in foreign demand, though not yet as dominant as they once were in the boom years.