It has become an effective catalyst for foreigners. rise real estate prices in spain. attempt Balearic Islands fought to put an end to the phenomenon legal challenges and a lack of consensus, but alternative measures are being prepared to soften the effects on prices. Similar strategies can be applied in other parts of Spain where foreigners create a parallel housing demand that drives prices up.
In the case of Balearic Islands, foreign buyers bought more homes in 2022 than ever before: a total of 6,133, the highest number since the College of Registrars processed this data 10 years ago. This figure also represents 34.4% of total sales registered in the islands, the second highest since 35.6% represented by 3,784 purchases in 2015.
The rate of home purchases by foreigners in Spain is a much lower average percentage. T president José María Basáñezhead of ecnitasa and Atasa (Professional Association of Valuation Societies) calculates the percentage of foreign home buyers in Spain “In recent years, it is between 10% and 15% on average.We closed 2022 with around 12%”. In any case, in foreign-dominated areas, as in the Balearic Islands, prices are skyrocketing and creating a real estate universe of its own.
coastal populations
According to Basáñez, the regions with the highest rate of home purchases by foreigners are, Valencian Community in Andalusia, Catalonia and the Balearic Islands. Coastal towns are like a magnet where prices are determined by foreign demand. According to Tecnitasa, english, german and french They are the usual buyers of houses in Spain. In some areas, such as the Costa del Sol, demand Russian or Norwegian.
After the curfews due to the pandemic, the purchases and sales of foreigners increased rapidly due to the blocked demand at that time. Tecnitasa’s forecast is that it will remain strong through 2023 despite the rise in interest rates and may rise depending on how economic and geopolitical conditions evolve, which has a significant impact in the context of general uncertainty currently prevailing.
Despite the undoubted legal challenges posed by the free movement of capital in Europe, the Balearic Government is keen to curb foreign demand, which, at the push of United We Can, affects both selling and rental prices. MP Pablo Jiménez (UP) advocated a veto in the Balearic Parliament of buying from foreigners, but PP and Vox opposed it on every point. Alternative routes continue. The purple body reached an agreement with the Socialists to encourage the Balearic Government to “promote, in coordination with the State Government and the institutions of the European Union, a law providing for the necessary measures allowing the restriction of home purchases to natural persons or legal persons”. Non-residents to avoid current speculation about housing”.
Fines for real estate in the Balearic Islands
A basic tool already available audits of both real estate and lease contracts. 174 actions were taken in the Balearic Islands in 2021 and 90% of real estate companies failed, so they had to fix the mistakes. In 2022, 56 actions (35 in Mallorca and 21 in Eivissa) and 52 irregularities were detected, all but eight fixed. There are currently eight files open (all in Mallorca). This real estate fine No information in Catalan or Spanish, no request form, etc. may exceed 30,000 Euros.
Sources in the real estate sector deny that suppressing home sales to foreigners will affect prices. But their experience raises suspicions, as foreigners tend to buy new, higher-priced housing with better building materials. An offer designed largely for this demand. A good part of these foreign buyers bought household More than 500.000 EurosWhen the average price of houses bought in Spain slightly exceeds 170,000 euros.
According to that Spanish College of RegistrarsAutonomous communities with the highest purchase weight recorded by foreigners in the fourth quarter of 2022 Balearic Islands (36.15%), Commonwealth of Valencia (28.47%), Canary Islands (27.25%), Region of Murcia (21.87%) it happened. ), Catalonia (15.58%) and Andalusia (14.70%). According to the same sources, a certain balance has been established between the increase in the purchasing weight of foreigners and the number of provinces with a decrease, and 24 provinces with an increase and 26 provinces with a decrease have emerged. The provinces with the highest weight in foreign home purchases in the fourth quarter are Alicante (42.94%), Balearic Islands (36.15%), Málaga (34.05%), Santa Cruz de Tenerife (32.55%), Girona ( 31.12%). , Las Palmas (22.15%) and Murcia (21.87%).
While major city centers on the beach and beach are often the main destinations for home search among foreigners, Idealista identifies 22 towns with a population of less than 5,000 where the interest in buying a home abroad is greater than in Spain. These are Fuente Obejuna (Córdoba), where 77% of the portal’s visits in recent months come from abroad; the municipalities of Garcirrey (69%) and El Milano (66%); Cala Ratjada (63%) in Majorca; Laroya (61%) in Germany; Valle Gran Rey (57%) in La Gomera; In Alicante, again 57%, Cómpeta (Málaga) and Ciudad Quesada (55%). Also, Canillas de Albaida and Sayalonga (both in Malaga), with 54% of visitors coming from foreigners seeking housing; Benitachell (Alicante), Cala Millor (Mallorca), Arboleas (Almeria) and Cala Bona (Mallorca) with 53%; Sa Coma (Mallorca) and the towns of La Gomera in Alajero (Santa Cruz de Tenerife) and Albanchez (Almería), Deya (Mallorca), Cala D’Or (Mallorca) and Lubrín (Almería) with 52% of foreign calls, Idealista with 51% According to , Jete (Granada) and Portbou (Girona) are involved with the same interest in home buying by foreigners and locals alike.